Tally 7.2    :-  Answers  to  Frequently Asked Questions

How will Tally 7.2 help to generate Statutory Returns?

With Tally 7.2 all you need to ensure is the accuracy of all your Purchase Invoices and Sales Invoices being recorded in your computer. Thereafter, at the press of a key, State specific statutory reports, documents and accounts will be directly generated, along with forms. These could then be directly printed for filing Statutory Returns.

Statutory Returns will need to be filed in a continuous form, either monthly or quarterly and then annually (a summary of the entire year's reports).

Since these are continuous reports, the Carry Forward Credit of the current report has to match that of the previous report. Furthermore, once the Returns are filed, changes cannot be made in the subsequent month/s without submitting detailed documentation.

Every Statutory Return, depending upon the State, could have up to 30 fields on the form. For each of the fields to be filled, one would need to do tedious and accurate calculations based on all the transactions of the given period (but not with Tally 7.2).

In some States, the Statutory Returns could be a single-page and in other states there could be multiple pages, which would need the support of many transactional annexures. Just the process of filing Statutory Return and filling in the required reports and forms, would be similar to generating a Balance Sheet every month/quarter.

How will Tally 7.2 maintain the VAT Documents and VAT Accounts?

The basic requirement for VAT compliance is that businesses need to receive and raise VAT compliant invoices called Tax Invoices in order to claim input credit. The following Records and Accounts will be generated and maintained by Tally 7.2, accurately and in detail, for filing of Statutory Returns.

VAT Documents

1. Tax Invoice

A VAT compliant invoice, called Tax Invoice, will need to be serially numbered and will have the following details:

·        Product if exempt or vatable

·        Tax Identification Number (TIN) - registration details along with sellers' name and address

·        Tax point - date of sale

·        Full item list with VAT breakup including VAT totals

2. Credit and Debit Notes

Detailed documents of all returns and adjustments will be maintained since the same will have an impact on input credit. All Credit or Debit Notes will require the same information as that on a Tax Invoice.

(With Tally 7.2 all the above details could be filled in with the help of Master Data for Suppliers and Buyers; along with VAT details in the VAT Computation Sheet)

VAT Records

1. Stock Records

Complete records of purchases and sales will be maintained of each stock item.

2. Manufacturing Account

Complete records of raw materials and inputs purchased along with goods manufactured.

3. VAT Account

As per State specified formats, the VAT Accounts will be accurately maintained. The VAT Account is a summary of all input tax paid at the time of purchase and all output tax collected at the time of sale to compute the Net VAT Payable or Input Credit which is carried forward.

(Tally 7.2 also allows you to drill down into the relevant details ensuring the audit trail)

But will Tally 7.2 help me get VAT compliant in my State?

Tally 7.2 meets the VAT accounting challenges that each State poses by having its own VAT legislations, which as of now are not uniform across the States. Tally 7.2 is a single VAT compliant solution that will help you in all the States you have offices in, since it is configured to handle the different State needs and legislations.

With Tally 7.2 all you need to ensure is the accuracy of all your Purchase Invoices and Sales Invoices being recorded in your computer. Thereafter, at the press of a key, State specific Statutory Returns along with reports, documents and accounts will be directly generated. Tally 7.2 is a single VAT compliant solution that will help you in all the States you have offices in, since it is configured to handle the different State needs and legislations.