Implementation of CST in Tally 9

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Version: Implementation of CST in Tally 9/2.0/Training/June2008

Contents
Introduction
Basics of Central Sales Tax (CST) ............................................................................................................................... 1
Rate of CST ................................................................................................................................................................. 2 Forms for Declarations under CST Scheme .............................................................................................................. 3

Lesson 1: Enabling CST in Tally

1.1 Features of CST in Tally ....................................................................................................................................... 6 1.2 Company Setup ....................................................................................................................................................... 6 1.3 Ledger Classifications............................................................................................................................................ 8 1.4 Stock Item Classification..................................................................................................................................... 15

Lesson 2: Transactions
2.1 Inter-State Purchases ............................................................................................................................................ 17 2.2 Inter-State Sales .................................................................................................................................................... 21
2.2.1 Inter-State Sales against C Form ................................................................................................................. 21 2.2.2 Transit Sales against E-I Form and E-II Form ........................................................................................ 23 2.2.3 Branch Transfers/ Consignment Sales against F Form ............................................................................... 27 2.2.4 Exports against H Form .............................................................................................................................. 29 2.2.5 Sales to SEZ Units against I Form .............................................................................................................. 31

2.3 Payment of CST .................................................................................................................................................... 32

Lesson 3: Reports
3.1 Forms Receivable Report .................................................................................................................................... 34 3.2 Forms Issuable Report ......................................................................................................................................... 37

Introduction

Sales Tax is a tax levied on the sale of goods. The liability to pay sales tax arises on making sales of goods. In India, the law for levying sales tax is provided in the Central Sales Tax Act of 1956 which applies to the entire country. Generally, the CST Act does not deal with sales made intra-state or import or export sales. However, in respect of certain declared goods such as oil seeds, sugar, pulses, crude oil and so on, the CST Act imposes restrictions on the powers of state governments to levy sales tax even in the case of intra-state sales. Accordingly, sales can broadly be classified into three categories. Intra-State sales, that is, sales within the state. Sales during import and export. Inter-State sales. The Act also provides for the levy, collection and distribution of taxes on sale of goods in the course of inter-state trade or commerce.

Basics of Central Sales Tax (CST)

It is important to understand the meaning of certain terms used in the CST Act. Inter-State Sale A sale or purchase of goods shall be deemed to take place in the course of inter-state trade or commerce if the sale or purchase a). occasions the movement of goods from one state to another; or b). is effected by a transfer of documents of title to the goods during their movement from one state to another. Both the above modes are mutually exclusive.

Introduction

Declared Goods Declared Goods means goods declared under Section 14 to be of special importance in interstate trade or commerce. Some of the important items are cereals, coal in all forms excluding charcoal, cotton in unmanufactured form, cotton fabrics and cotton yarn, crude oil, hides and skin, iron and steel, jute, oil seeds, pulses, man-made fabrics, sugar, unmanufactured tobacco and woven fabrics of wool. Registration under CST Act Every dealer, liable to pay Central Sales Tax has to register himself with the Sales Tax Authority, that is, dealers who effect inter-state sales are required to register under CST Act. Hence, intermediaries like agents, transporters, who only facilitate sales are not required to be registered, as they do not affect sales. However, a dealer may voluntarily apply for registration under CST Act even if he is not liable to pay Central Sales Tax or if goods sold or purchased by him are exempt under state sales tax law. Registration brings many advantages. For example, the dealer can issue C form and purchase goods at concessional rate. Rate of Central Sales Tax Different rates are prescribed depending upon the nature of inter-state sale such as a. Sale to registered dealers. b. Sale to unregistered dealers. (i) Sale of declared goods to unregistered dealers. (ii) Sale of goods other than declared goods to unregistered dealers.

Rate of CST
Sale to Registered Dealers Sale to registered dealer is taxable @ 2% or sales tax rate for sale within the state, whichever is lower, provided that the goods are eligible and these are specified in the Registration Certificate issued to purchasing dealer. Purchasing dealer has to submit declaration in prescribed C form to the selling dealer. Sale to Unregistered Dealers The rate is twice the rate applicable to sale or purchase of such goods inside the state in respect of declared goods and in respect of goods other than declared goods, the rate applicable for sale inside the state or 10%, whichever is higher. The purchaser does not have to give any declaration. In reality he cannot give any declaration as he is not registered.

Introduction

Forms for Declarations under CST Scheme

A registered dealer has to issue certain declarations in prescribed forms to buyers/ sellers. Some of these forms, such as C, E1, E2, F and H are printed and supplied by Sales Tax Authorities. Dealer has to issue declarations in the forms printed and supplied by the Sales Tax Authorities only. These forms are generally in triplicate.

Figure 1.1 Chart showing prescribed Forms in Interstate Sales

Form C As per CST Act, sales tax on inter-state sale is 2% or sales tax rate for sale within the state, whichever is lower, if sale is to a registered dealer and the goods are covered in the registration certificate of the purchasing dealer. Otherwise, the tax is higher, that is, 10% or tax leviable on sale of goods inside the state, whichever is higher. This concessional rate is applicable only if purchasing dealer submits a declaration in prescribed Form C. One C form covers all transactions in one whole financial year, irrespective of total amount or value of transactions during the year. However, for transactions exceeding one financial year separate C form is required for each financial year. Forms E-I and E-II According to Section 6(2) of CST Act, only the first inter-state sale is taxable and the subsequent sale during movement of goods by transfer of documents is exempt from tax. , provided the purchasing dealer is a registered dealer. Usually, transfer of document means when the document of title in favour of buyer, agent of seller, banker or self are transferred in favour of the purchaser by way of endorsement on the document of title and is duly signed by the endorser. The document can be further transferred by subsequent endorsements. The subsequent sellers have to obtain declaration from the selling dealers i.e., from whom goods were purchased and declaration in C form from the purchasing dealer. The selling dealer has to make a declaration in Form E1 in case of first sale and Form E2 in case of subsequent sale. For Example, assume M from Karnataka sells goods to N of Tamil Nadu in transit. During movement of goods, N sells the goods to O in Tamil Nadu and O subsequently sells the goods in transit outside the state to P Kerala.
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Introduction

The sale from M to N is by way of transfer of documents of title and the transaction is chargeable @ 2% CST, M collects C-Form from N and issues declaration in Form E1 to N. Whereas, the transactions between N and O is exempt as result of goods sold in transit. Further, when O sells the goods to P, is required to collect C Form and issue declaration in Form E 2, which completes the cycle. It is important that if this chain is broken CST will be payable. Similar to C form, one declaration form in E1 and E2 (as the case may be) covers all transactions in one year, irrespective of number of transactions and the total amount. However, separate declarations for each financial year are required to be furnished.

Figure 1.2 Chart showing E-I & E-II transactions

Form F Businesses with multiple branches or agents at several locations within or outside the state, they are required to transfer the goods for purpose of trade. When the goods are transferred from one place to another of the same principal, it is known as Branch Transfer and when it is transferred to agents, it is termed as Consignment Sale. Though there is inter-state movement of goods, there is no sale and thus CST is not payable. Under CST Act, in the event of dealer claiming that the interstate movement of goods is not a sale, he has to furnish a declaration in F form received from the consignment agent or branch office in another state evidencing such transfer. One F form covers all transactions in one month, irrespective of number of transactions and the total amount. Form H A sale during course of export is exempt from CST and also the penultimate sale is deemed to be in course of exempt from CST under CST Act. The dealer exporting the goods has documents in proof of export such as airway bill/ bill of lading, shipping bill, customs documents, bank certificate and so on. However, the penultimate seller may not have any proof evidencing that his sale is exempt. During such situations, the actual exporter is required to issue a certificate in Form H to the penultimate seller.
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Introduction

Form I Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations, duties and tariffs. Under CST Act, supplies made by a registered dealer to a unit in Special Economic Zone (SEZ) will not be subject to CST, provided such unit furnishes a declaration in Form I.

Lesson 1:

Enabling CST in Tally

Lesson Objectives
On completion of this lesson, you will learn how to Enable CST in Tally Create CST masters in Tally The Central Sales Tax features integrated in Tally 9 takes care of transactions related to interstate trade or commerce. It eliminates possibilities of errors during data inputs. It also helps in generation of CST reports displaying appropriate forms to be issued/ received at the end of the month or a financial year or at any point of time. It takes a one-time configuration in Tally for CST features to be activated.

1.1 Features of CST in Tally

The salient features of CST functionality in Tally are : 1. 2. 3. 4. Is simple and user-friendly. Is quick, easy to setup and use. Generates Party-wise, Form-wise forms issueables/ receivables report. Provides flexibility in selection of forms and form numbers during voucher entry or at the time of report generation. 5. Has an auto-fill option in the Forms Receivables/ Issueables feature that prevents error-prone data entry.

1.2 Company Setup

Create a new company in Tally 9. You can also migrate from older versions of Tally to the latest version. Consider the following example to enable CST. Example: National Traders is a registered dealer under CST Act and is one of the leading All India distributors of Industrial Powder Paints. It purchases various shades of powder paints from Unique Paints (P) Ltd., Margao, Goa and supplies to registered dealers outside the state.

Enabling CST in Tally

Step 1 : Create Company Go to Gateway of Tally > F3: Company Info. > Create Company In the Company Creation screen, Specify National traders as the Company Name and Address details Select India in the Statutory Compliance for field Specify the State, Pin code & Accounts with Inventory details The completed Company Creation screen is dispalyed as shown.

Figure 1.1 Company Creation Screen

Press Enter to Accept. Step 2 : Enable VAT Go to Gateway of Tally > press F11: Statutory & Taxation

Enabling CST in Tally

Enable VAT in F11: Statutory & Taxation to load VAT and CST related Statutory Masters automatically.

Figure 1.2 F11: Statutory & Taxation Screen

Specify the VAT TIN Number and Inter-State Sales Tax Number along with other details Press Enter to accept the screen.

The CST feature will be available only when VAT is activated

1.3 Ledger Classifications

Create the following necessary ledgers : Sales & Purchase Accounts Tax Ledgers Party Ledgers Bank Ledger Expense Ledger

Enabling CST in Tally

Sales & Purchase Accounts Ledger Under Inventory values are affected Yes Yes Yes Yes Yes Used in VAT returns Yes Yes Yes Yes Yes VAT/Tax Class

Interstate Sales Interstate Purchases Branch Transfer Outward Sales Deemed Exports Sales SEZ Create Sales Ledger 1. 2. 3. 4. 5. 6.

Sales Accounts Purchase Accounts Sales Accounts Sales Accounts Sales Accounts

Inter-State Sales Inter-State Purchases Consignment/Branch Transfer Outward Not Applicable Not Applicable

Go to Gateway of Tally > Accounts Info. > Ledgers > Create Type Interstate sales as the Ledger Name Select Sales Accounts in the Group field Set Inventory values are affected to Yes Select Not Applicable in the Rounding Method field. Set Used in VAT Returns to Yes and press Enter to view VAT/Tax Class Screen In VAT/Tax Class Screen select Inter-State Sales as VAT/Tax Class

Figure 1.3 VAT/Tax Class Selection Screen

Enabling CST in Tally

The completed Sales Ledger screen is displayed as shown.

Figure 1.4 Completed Sales Ledger Creation Screen

7. Press Enter to Accept. Similarly create other sales ledgers with the relevant VAT Tax Class Create Interstate Purchases Ledger with the relevant VAT Tax Class. The completed Interstate Purchases Ledger Creation screen is dispalyed as shown :

Figure 1.5 Completed Purchase Ledger Creation Screen

Press Enter to Accept.

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Enabling CST in Tally

Tax Ledgers Create the following Input and Output CST ledger : Output CST Ledger Ledger Under Type of Duty/Tax CST VAT/Tax Class Inter-state Sales Inventory values are affected No Percentage of Calculation 2 Method of Calculation On Total Sales

CST @ 2%

Duties & Taxes

In the Ledger Creation screen, 1. 2. 3. 4. 5. 6. 7. Type CST @ 2% as the Ledger Name Group it under Duties & Taxes group Select CST as the Type of Duty/Tax Select Inter-state Sales as the VAT/Tax Class Enter 2% as the Percentage of Calculation Select On Total Sales as the Method of Calcualtion from the Type of Duty. Select Not Applicable in the Rounding Method field

The completed CST @ 2% ledger creation screen is displayed as shown

Figure 1.6 Completed CST Ledger Creation Screen

8. Press Enter to Accept

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Enabling CST in Tally

Input CST Ledger Ledger CST on Purchases Under Purchase Accounts Inventory values are affected No Used in VAT Returns Yes VAT/Tax Class Inter-state Purchases

In the Ledger Creation screen, 1. 2. 3. 4. 5. 6. Type CST on Purchases as the Ledger Name Group it under Purchase Accounts group Set Inventory values are affected to No Select Not Applicable in the Rounding Method field Set Used in VAT Returns to Yes and press Enter In VAT/Tax Class subscreen, select Inter-State Purchases as the VAT/Tax Class

The completed CST on Purchases ledger creation screen is displayed as shown

Figure 1.7 Completed CST Ledger Creation Screen

7. Press Enter to Accept

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Enabling CST in Tally

Party Ledgers Ledger Sunrise Industries Unique Paints (P) Ltd., Swastik Associates National Traders U.P Surya Exports Track Innovations (P) Ltd. Create Sundry Debtors Ledger 1. Type Sunrise Industries as the Ledger Name 2. Group it under Sundry Debtors group 3. Set Maintain balances bill-by-bill to Yes 4. Set Inventory values are affected to No 5. Enter the Address, State and PIN Code under Mailing Details 6. Enter the PAN/IT No. and TIN/Sales Tax No. under Tax Information The Completed Sunrise Industries ledger creation screen is displayed as shown Under Sundry Debtors Sundry Creditors Sundry Debtors Branch/ Divisions Sundry Debtors Sundry Debtors Maintain balances bill-by-bill Yes Yes Yes Yes Yes Inventory values are affected No No No No No No

Figure 1.8 Completed Sundry Debtors Ledger Creation Screen

7. Press Enter to Accept

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Enabling CST in Tally

Create Sundry Creditor Ledger 1. 2. 3. 4. 5. 6. Type Unique Paints (P) Ltd. as the Ledger Name Group it under Sundry Creditors group Set Maintain balances bill-by-bill to Yes Set Inventory values are affected to No Enter the Address, State and PIN Code under Mailing Details Enter the PAN/IT No. and TIN/Sales Tax No. under Tax Information

The Completed Unique Paints (P) Ltd. ledger creation screen is dispalyed as shown.

Figure 1.9 Completed Sundry Creditors Ledger Creation Screen

7. Press Enter to Accept Similarly, create other party ledgers. Create Bank Ledger Ledger National Bank Under Bank Accounts

1. Type National Bank as the Ledger Name 2. Group it under Bank Accounts group
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Enabling CST in Tally

Create Direct Expenses Ledger

Name Freight Charges 1. 2. 3. 4. 5.

Under Direct Expeses

Inventory Values are affected No

Used in VAT Returns No

Type Freight Charges as the Ledger Name Group it under Direct Expenses group Set Inventory values are affected to No Select Not Applicable in the Rounding Method field Set Used in VAT Returns to No

1.4 Stock Item Classification

To enter transactions of Purchase and Sales with inventory details, create Stock Items with Unit of Measure. By this, the user will be able to raise the Item Invoice and get the Stock Summary details. Create Stock Item Create the following Stock Items :

Stock Item Black Matt Golden Yellow Mettalic Blue Chocolate Brown P.O.Red

Under Primary Primary Primary Primary Primary

Units of Measure Kgs Kgs Kgs Kgs Kgs

Go to Gateway of Tally > Inventory Info. > Stock Items > Create Type Black Matt in the Name field Select Primary in the Under field Press Alt+C in the Units field and create Kgs as Unit of Measurement

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Enabling CST in Tally

The completed Black Matt Creation screen is displayed as shown.

Figure 1.10 Stock Item Creation

Press Enter to Accept. Similarly, create other stock Items.

Summary
On completion of this lesson, you would learnt to Enable CST and create CST masters in Tally

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Lesson 2:

Transactions

Lesson Objectives
On completion of this lesson, you will learn to record Interstate Purchase transactions in Tally Interstate Sales transactions in Tally Payment of CST As discussed earlier, in the course of inter-state trade or commerce the dealers have to issue/ submit certain declarations in prescribed forms to buyers/ sellers in order to avail concessional rates when 1. Sale or Purchase takes place outside a state. 2. Sale or Purchase takes place in the course of imports into India or exports from India. Consider the following examples to understand the concept of CST.

2.1 Inter-State Purchases

Illustration 1: On June 5, 2008, National Traders purchased the following items from Unique Paints (P) Ltd. Goa, vide Invoice No. 2458/08-09. Item Description Black Matt Golden Yellow Metallic Blue Quantity (in Kgs) 500 100 100 Rate (in Rs.) 190 285 250 Amount (in Rs.) 95,000 28,500 25,000

The above goods are subject to 2% CST.

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Transactions

The same is accounted as shown : Before passing the Purchase voucher, ensure all the necessary party ledgers, Tax ledgers and stock items are created as discussed in the earlier chapter. Setup: In F12: Invoice/Orders Entry, set Use Common Ledger A/c for Item Allocation to Yes Use Defaults for Bill Allocation to No Go to Gateway of Tally > F12: Configure > Invoice /Orders Entry

Figure 2.1 F12: Invoice / Orders Entry screen

Ensure Allow Invoicing and Enter Purchases in Invoice Format is set to Yes in F11: Accounting Features

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Transactions

Create Purchase Vocuher Go to Gateway of Tally > Accounting Vouchers > Press F9: Purchase Press Alt+I for Item Invoice Mode Press F2 and change date to 05-06-2008 Specify 2458 in the Suppier Invoice No. field and 05-06-08 in the Date field Select Unique paints (P) Ltd in Partys A/c Name Select Interstate purchases in Purchase Ledger, VAT/Tax Class displays, by default 6. Select Black Matt from List of Items for Name of Item field 7. Enter 500 as Quantity and 190 as Rate 8. Press Enter to automatically display the Amount as 95000 9. Similarly, select Golden Yellow as the second Stock Item 10. Specify Quantity as 100 and Rate as 285 11. Select Metallic Blue as the third Stock Item and specify the Quantity as 100 and Rate as 250 and press Enter 12. Select CST on Purchase ledger and press Enter 13. Specify the Rate as 2%, the CST amount is defaulted automatically 14. Select C Form from the Form Types drop down inthe Form to Issue field 1. 2. 3. 4. 5.

Figure 2.2 Purchase Invoice with Form Type popup

15. Press Enter to skip Form No. and Date fields

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Transactions

You can also fill the Form No. during Voucher Entry, if the forms are issued at the time of purchase. But usually, they are submitted at the end of the year covering all the transactions from that dealer during the year.

16. In the Bill-wise details screen, select New Ref and specify 2458/08-09 in the Name Field. The completed Interstate Purchase Voucher is displayed as shown.

Figure 2.3 Completed Interstate Purchases Voucher

17. Press Enter to Accept.

The above Purchase Invoice can also be recorded in Double Entry mode in Tally.

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Transactions

2.2 Inter-State Sales

In this section, let us consider the following Interstate Sales transactions against prescribed declarations : Interstate Sales against C Form Transit Sales against 'E1 Form' and 'E2 Form' Branch Transfers/ Consignment Sales against 'F Form' Exports against 'H Form' Sales to SEZ Units against 'I Form'

2.2.1 Inter-State Sales against C Form

Illustration 2: On June 7, 2008, National Traders sold the following items to Sunrise Traders, Delhi against C form. The freight charges of Rs. 750 were included in the Invoice. Product Description Black Matt Golden Yellow Metallic Blue Quantity (in Kgs) 100 20 10 Rate (in Rs.) 240 365 290 Amount (in Rs.) 24000 7300 2900

The above goods are subject to 2% CST. The same is accounted as shown : Create Sales Vocuher Go to Gateway of Tally > Accounting Vouchers > Press F8: Sales Press Alt+I for Item Invoice Mode Press F2 and change date to 07-06-2008 Select Sunrise Traders in Partys A/c Name Select Interstate Sales in Sales Ledger, VAT/Tax Class displays, by default Select Black Matt from List of Items in Name of Item field Enter 100 as Quantity and 240 as Rate Similarly, select Golden Yellow as the second Stock Item Specify Quantity as 20 and Rate as 365 Select Metallic Blue as the third Stock Item and specify the Quantity as 10 and Rate as 290 and press Enter twice 10. Select CST @ 2% ledger and press Enter, the CST Rate and amount is defaulted automatically 11. Select Freight Charges and specify 750 in the Amount field 1. 2. 3. 4. 5. 6. 7. 8. 9.

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Transactions

12. Select C Form from the list of Form Types in Form to Receive field

Figure 2.4 Sales Invoice with Form Type popup

13. Press Enter to skip Form No. and Date fields

You can also fill the Form No. during Voucher Entry, if the forms are issued at the time of purchase. But usually, they are submitted at the end of the year covering all the transactions from that dealer during the year.

14. Press Enter to accept the default Bill allocations in the Bill-wise Details screen.

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Transactions

The completed Sales Voucher entry is displayed as shown.

Figure 2.5 Completed Interstate Sales Voucher

15. Press Enter to Accept.

2.2.2 Transit Sales against E-I Form and E-II Form

As discussed earlier, according to Section 6(2) of CST Act, the first inter-state sale is taxable and subsequent sale during movement of goods by transfer of documents of title to goods is exempt from tax, if the subsequent sale is to a registered dealer. Consider the following illustration. Illustration 3: On June 13, 2008 National Traders despatched the following goods to Star Power Controls, Orissa and raised an Invoice on Swastik Associates in Madhya Pradesh and charged 2% CST against C form. Product Description Black Matt Chocolate Brown P.O.Red Quantity (in Kgs) 300 50 50 Rate (in Rs.) 240 270 245 Amount (in Rs.) 72000 13500 12250

National Traders received C form vide No. TC-2K-15023 dt. 13-06-2008 from Swastik Associates and issued E-1 form vide no. TE-1Q-0130 dt. 13-06-2008.
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Transactions

The same is accounted as shown : Setup: In F12: Invoice / Orders Entry, set Set Accept Supplementary Details to Yes Set Allow separate Buyer and Consignee names to Yes Set Activate E1 and E2 Transaction to Yes Go to Gateway of Tally > F12: Configure > Invoice /Orders Entry

Figure 2.6 F12: Invoice / Orders Entry screen

Create Sales Voucher Go to Gateway of Tally > Accounting Vouchers > Press F8: Sales way of Tally > Accounting Vouchers > Press F8: Sales 1. Press Alt+I for Item Invoice Mode 2. Press F2 and change date to 13-06-2008

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Transactions

3. Select Swastik Associates in Partys A/c Name and press Enter to view Despatch Details screen. 4. In the Despatch Details screen enter Consignee Name and Address. The completed Despatch Details screen is displayed as shown.

Figure 2.7 Despatch Details

5. Select Interstate Sales in Sales Ledger, VAT/Tax Class displays, by default 6. Select Black Matt from List of Items in Name of Item field 7. Enter 300 as Quantity and 240 as Rate 8. Similarly, select Chocolate Brown as the second Stock Item 9. Specify Quantity as 50 and Rate as 270 10. Select P.O.Red as the third Stock Item and specify the Quantity as 50 and Rate as 245 and press Enter 11. Select CST @ 2% ledger and press Enter, the CST Rate and amount is defaulted automatically 12. Select C Form from the list of Form Types in Form to Receive field and specify Form No. as TC-2K-15023 and Date as 13-06-08

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Transactions

13. Select E1 Form from the list of E Form Types in Form to Issue field

Figure 2.8 Interstate Sales - E-I Form Type Selection

14. Specify Form No. as TE-1Q-0130 and Date as 13-06-2008.

You can also press Enter and skip Form No. and Date field if the prescribed forms are not received at the time of transaction. Generally, blank forms are received at the beginning of the year or on commencement of inter-state transaction with the respective dealer. However, Tally gives you the flexibility to update Form Nos. and Date in the Reports Menu, which will be discussed later in this lesson.

15. Press Enter to accept the default Bill allocations in the Bill-wise Details screen.

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Transactions

The completed Sales Voucher entry is displayed as shown.

Figure 2.9 Completed Interstate Sales - Transfer of Document (E-I & E-II)

16. Press Enter to Accept.

2.2.3 Branch Transfers/ Consignment Sales against F Form

Illustration 4: On June 16, 2008 National Traders despatched the following goods to their Branch in Uttar Pradesh. Product Description Golden Yellow Metallic Blue Quantity (in Kgs) 20 30 Rate (in Rs.) 285 250 Amount (in Rs.) 5700 7500

The Branch/ Consignment agent is required to furnish a declaration in F form for every month. The same is accounted as shown : Setup: In F11: Accounting Features, set Maintain Bill-wise details (for Non-Trading A/cs also) to Yes

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Transactions

Create Sales Vocuher Go to Gateway of Tally > Accounting Vouchers > Press F8: Sales 1. 2. 3. 4. 5. 6. 7. 8. 9. Press Alt+I for Item Invoice Mode Press F2 and change date to 16-06-2008 Select National Traders U.P in Partys A/c Name Select Branch Transfer Outward in Sales Ledger, VAT/Tax Class displays, by default Select Golden Yellow from List of Items in Name of Item field Enter 20 as Quantity and 285 as Rate Similarly, select Metallic Blue as the second Stock Item Specify Quantity as 30 and Rate as 250 and press Enter Select F Form from the list of Form Types in Form to Issue field

Figure 2.10 Branch Transfer Voucher - F Form Selection

10. Press Enter to skip Form No. and Date fields 11. Press Enter to accept the default Bill allocations in the Bill-wise Details screen.

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Transactions

The completed Branch Transfer Voucher is displayed as shown.

Figure 2.11 Completed Branch Transfer Outwards Voucher against F Form

12. Press Enter to Accept. Similarly, when the consignment sale is made to the agents the same form (F Form) is to be selected.

2.2.4 Exports against H Form

Illustration 5: On June 18, 2008, National Traders supplied the following item to Surya Exports against submission of Form H vide No. 102504 dt. 18-06-2008. Product Description Black Matt Quantity (in Kgs) 100 Rate (in Rs.) 240 Amount (in Rs.) 24000

The same is accounted as shown :

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Transactions

Create Sales Voucher Go to Gateway of Tally > Accounting Vouchers >Press F8: Sales Press Alt+I for Item Invoice Mode Press F2 and change date to 18-06-2008 Select Surya Exports in Partys A/c Name Select Sales Deemed Exports in Sales Ledger and select Inter-State Sales in VAT/ Tax Class field 5. Select Black Matt from List of Items in Name of Item field 6. Enter 100 as Quantity and Rate as 240 and press Enter 7. Select H Form from the list of Form Types in Form to Issue field 1. 2. 3. 4.

Figure 2.12 Export Sales - H Form Selection

8. Specify Form No. as 102504 and Date as 18-06-2008 9. Press Enter to accept the default Bill allocations in the Bill-wise Details screen.

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Transactions

The completed Sales Deemed Exports entry is displayed as shown.

Figure 2.13 Completed Export Sales against H Form

10. Press Enter to Accept.

2.2.5 Sales to SEZ Units against I Form

Illustration 6: On June 20, 2008 National Traders supplied the following item to Track Innovations (P) Ltd., a unit in SEZ located at Chennai, against submission of Form I. Product Description Metallic Blue Quantity (in Kgs) 50 Rate (in Rs.) 290 Amount (in Rs.) 14500

The same is accounted as shown: Create Sales Voucher Go to Gateway of Tally > Accounting Vouchers > Press F8:Sales 1. 2. 3. 4. 5. Press Alt+I for Item Invoice Mode Press F2 and change date to 20-06-2008 Select Track Innovations (P) Ltd in Partys A/c Name field Select Sales SEZ in Sales Ledger, and select Inter-State Sales in VAT/Tax Class Select Metallic Blue from List of Items in Name of Item field
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Transactions

6. Enter 50 as Quantity and Rate as 290 and press Enter 7. Select I Form from the list of Form Types in Form to Issue field

Figure 2.14 Sales Invoice with I Form selection

8. Press Enter to skip Form No. and Date fields 9. Press Enter to accept the default Bill allocations in the Bill-wise Details screen. 10. Press Enter to Accept

2.3 Payment of CST

Central Sales Tax is payable in the state from which goods are sold. The tax so collected is retained by the state in which it is collected. The State Government Sales Tax Officer who assesses and collects local state sales tax also assesses and collects Central Sales Tax. The due date is same as for the period to submit returns under Value Added Tax (VAT) of the appropriate state. The CST payable amount should be rounded off to the nearest rupee. Illustration 7: On July 20, 2008 National Traders paid an amount of Rs. 2,639 towards CST payable for the month of June 2008 vide Cheque No. 015630 dt. 20-07-2008. setup: In F12: Configure, ensure that Use Single Entry mode for Pymt/Rcpt/Contra is set Yes

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Transactions

Create Payment Voucher Go to Gateway of Tally > Accounting Vouchers > Press F5: Payment 1. 2. 3. 4. Press F2 and change date to 20-06-2008 Select National bank in Account Field Select CST @ 2% in particulars and specify the Amount as 2639 Type Cheque No. 015630 in the Narration field

The completed Payment voucher is displayed as shown.

Figure 2.15 Completed Payment Voucher

5. Press Enter to Accept.

Summary
On completion of this lesson, you would have learnt to record Interstate transactions in Tally

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Lesson 3:

Reports

Lesson Objectives
On completion of this lesson, you will be able to Generate CST reports Tally facilitates the generation of CST related reports, that is, Forms Receivable and Forms Issuable Reports for any period of time or at any point of time. It also offers the facility of autofilling the form number for the transactions relating to same dealer during that year, which enables quicker voucher entry and reduces the possibility of errors.

3.1 Forms Receivable Report

In Tally, you can generate ledger-wise Forms Receivable Report. This report comments on various forms to be received from the dealer at any given point of time. It displays the date of transaction, CST Sales ledger employed, gross amount inclusive of CST, form types and also contains two additional fields Form Number and Date, which have to be filled when the prescribed forms are received from the purchasing dealer or the customer. Usually, this report is generated at the end of a financial year or month end (in specific cases). However, Tally facilitates the generation of this report at any point of time. Go to Gateway of Tally > Display > Statutory Reports > CST Reports > Forms Receivable > select the required ledger, that is, Sunrise Industries and press Enter

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The Forms Receivable Report of M/s. Sunrise Industries is displayed as shown.

Figure 3.1 Forms Receivable Report

The above report shows that C Form is to be received from the said customer for the supplies made during the respective period. In this report, you can fill the Form No. and Date of such form when it is received. Select M/s. Surya Exports ledger to view forms to be received from them.The report is blank as the prescribed declaration in Form H was received at the time of sale and entered in the Sales Invoice during voucher entry. However, you can view the vouchers for which forms have been received in advance or at the time of transaction. To view all vouchers, press F12: Configure and enable the following Set Show All Vouchers to Yes

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Select H Form in Show Vouchers of field .

Figure 3.2 Forms Receivable Report - H Form Selection

This feature allows you to view different Forms Receivable from the same dealer. If this option is set to Not Applicable, whatever forms are due from the dealer will be displayed. The Forms Receivable report of M/s. Surya Exports appears as shown

Figure 3.3 Forms Receivable Report

To print the report, press Alt+P.

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If there are numerous transactions, press F5 or click on the Auto Fill - CST button on the button bar to select the Form Type and enter Form No. and Date to auto-fill the same in all the transactions pertaining to the related form. In the same manner, you can view other Forms Receivable for the rest of the dealers during the required period.

3.2 Forms Issuable Report

In Tally, you can generate ledger-wise Forms Issuable Report. This report comments on various forms to be issued to the dealer at any given point of time. It displays the date of transaction, CST Purchases ledger employed, gross amount inclusive of CST, form types and also contains two additional fields Form Number and Date, which can be filled when the prescribed forms are issued to the selling dealer or supplier. Similar to Forms Receivable Report, this report is also generated at the end of a financial year or month end (in specific cases) and can be generated at any point of time in Tally. Go to Gateway of Tally > Display > Statutory Reports > CST Reports > Forms Issuable > select the required ledger, that is, Unique Paints (P) Ltd., and press Enter The Forms Issuable report of M/s. Unique Paints (P) Ltd. is displayed as shown.

Figure 3.4 Forms Issuable

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As discussed earlier, fill Form No. and Date. Select Swastik Associates ledger to view Forms Issuable Report showing the Form to issued for the movement of goods affected through the transfer of documents. Go to Gateway of Tally > Display > Statutory Reports > CST Reports > Forms Issuable > Select Swastik Associates ledger and press Enter Press F12: Configure and Set Show All Vouchers to Yes Select E1 Form in the Show Vouchers of field and press Enter The Forms Issuable report is displayed as shown.

Figure 3.5 Forms Issuable Report - Swastik Associates

In the above transaction, though C Form has been received and the transaction has been reflected in the Forms Receivable Report, as per the CST Act, the declaration in Form EI must be furnished for sales in transit and thus, the E1 Form is shown in the Forms Issuable Report.

Summary
On completion of this lesson, you would have learnt to generate CST Reports in Tally

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