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The document provides detailed instructions on recording intra-state and inter-state supplies of services under GST using Tally ERP9. It includes examples of transactions, tax implications, and the necessary steps to create accounting masters and record invoices for both inward and outward supplies. The document also explains how to handle cancellations and adjustments through debit and credit notes.
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0% found this document useful (0 votes)
19 views16 pages

2nd Chapter Free

The document provides detailed instructions on recording intra-state and inter-state supplies of services under GST using Tally ERP9. It includes examples of transactions, tax implications, and the necessary steps to create accounting masters and record invoices for both inward and outward supplies. The document also explains how to handle cancellations and adjustments through debit and credit notes.
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© © All Rights Reserved
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Available Formats
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nas . ~~ veeees au service tax @14% (%50,000 credi Intra state supply of services After enabling GST in the company, you can record inward and outward supply of services Paes voucher and sale of services using sales voucher spectively we know taxability depends on the pl. aa ventify the taxability, Place of supply is critical to Asupply of services shall be an intrastate supply of the service provides and the service recipient are located in the same State. For example: - Kodagu enterprises a dealer in hardware goods, located in Bhongiri, Telangana made an order to MM ‘Traders located in: Mysore, Karnataka to supply 100 ASPEE spray machines for coffee plantation on which installation services is charged. This transaction attracts central tax and state tax as per percentages defined by the GST law. In this section we will see how to record intra state transactions using Tally ERP9. Intrastate Inward supply . Illustration 2: Recording transaction for intrastate inward supply of service with GST and checking tax analysis details Date [Particulars 5.7.2017 ‘Voucher: Purchase JJ enterprises received advertising services worth 300000 from Tamara. Pvt. Ltd. Bhongiri, Telangana. Additionally, GST @18 % is charged on the invoice with imber JJ/001. ill Scanned with CamScanner Let us determine the, taxability of this Place of supply Taxes Applicable To record inward supplies Step-1: Create Accounting Masters Service Expense Ledger. is supply. I Enterprises, Bhongiri, Telangana ee gana FTamara Pvt. Ltd., Bhongiri, Telangang Central Tax and state Tax. Advertising Services ‘Against the field Name pees AWG eee eee eed ‘Action to be performed Enter Advertising Services Under ‘Select Indirect Expenses Inventory Values are affected _|Select No. Is GST Applicable Select Applicable Set / alter GST details - Select No ‘Type of supply Select Services. Press Enter to accept Note: Set / alter GST details is set to no in the ledger because, GST it configured in the company evel. State Tax Ledger State Tax ‘Against the field ‘Action to be performed Name Enter State Tax Under Select Duties & Taxes ‘Type of duty /Tax Select GST Tax Type Select State Tax Rounding Method Select Not Applicable Press Enter to accept Note: The Percentage.of calculation i different tax rates. is left blank to use this Ledger across Party Ledger : Tamara Pyt., Ltd., Against the field Action to be performed Name. Enter Tamara Pvt., Ltd., Under Select Sundry Creditors Maintain Balances bill by bill Select Yes Default credit period Check for credit days during voucher entry? Inventory Values are affected? Press Eiter to skip this field Select No Select No Scanned with CamScanner GSTIN/UIN Party Type ee is an e-commerce’ operator Sete: Tax is Calculated based on fields are defined appropriately, Step 2: - Recording Intra State inward su record intra state inward Supply of Servic 1. Go to gateway of Tall: 2. Click F2: Date and g 3. Enter the supplier j lefault, 4. In the Party A/c name field select Tamara Pt. Itd. The Party details screen is-displayed, a Note: The GSTIN 7 UIN as entered in the 5. Select Regular as the type of dealer 'PPlies in account invoice Mode to ices, Supplier ledger it displayed, 6. Under the Particulars field select the advertising services ledger 1. Enter the amount as Rs 30,000 & Press Enter 8. Select the State tax ledger. The amount it felted in automatically, 9. Select the ledger central Tax Ledger. The amount is felted in automatically. ; 10. In the bitl-wise details screen, select New Ref with nameJ3/001 & accept the details. ML. Click A: Tax Analysis to view the tax Analysis, '2. Click F1: Detailed '3. Press Esc 14. Enter the Narration if required 1S. Press Enter to accept pari =r i i f lication of this transaction Since this is an inward supply, the tax imp! be viewed in GSTR-2 , -Toview GsTR-2, tutory Reports > GST > GSTR-2 Go to Gat Sa ey eee a mvoeeate taxable value is ° to Gateway of Tally ed under B2B invoices. ieee 3 Ihe transaction is ede is ¥ 27,000 and state tax value it % 27,000, 3,00,000 central Tax va Stal tax amount is € 54,000 Scanned with CamScanner can D-10 Intrastate Outward Supply: Iustration -3: Recording Transaction for intrastate outward supply op service with GST & Checking tax Analyst details Date Particulars 8.7.2017 Voucher: Sales JJ Enterprises rendered catering services for a busines, event in Secunderabad worth & 5,00,000 to TNY industri Pyt., Ltd., Mysore Additionally GST @ 18% is chargeq on the invoice with reference number SA / 001. Let us determine the taxability of this transactions: Location of Suppler [J Enterprises, Secunderabad, Telangana ~ Place of Supply |TNY Industries Pvt., Ltd., Mysore, - Telangana ‘Taxes Applicable [Central Tax and State Tax To record interstate outward supplies, Step 1: Accounting master creation service income ledger. Catering Services Against the field ‘Action to be performed Name Enter catering services Under Select indirect incomes Inventory values are affected Select No Is GST applicable Select Applicable . Set / alter GST details Select yes HSN/ SAC Details Description Enter catering services HSN/SAC Enter 996334 Nature of transaction Select not applicable Tax Details Taxability Select taxable Tax type Rate Integrated Tax Enter 18% fi Central Tax : 9% gets auto — filled based on the — | Value of integrated tax press Enter State Tax 9% gets auto — filled based on the ed {eave as blank =- oii ‘Type oF supply [Select as services Note: - Catering services and advertising services have different SAC Therefore, GST details for catering services are defined at the ledger leve! This will Override the details specified in the company level. Scanned with CamScanner Party Ledger D-il TNY Industries Pvt., Ltd. ezine the field Action to be performed Name Enter TNY Industries Pvt.Ltd. nd er_ : Select sundry debtors Maintain balances bill by bill Select yes Default credit period Press Enter to skip this field Check for credit days during [Select No voucher entry? Inventory values are affected? Select No : ‘Tax Registration Details PANIIT No. Enter as ASDFG9812Q Set / alter GST details Set to Yes GST Details Registration type GSTIN/VIN Party ‘Type Is an e-commerce operator Press Enter to accept ‘Select regular Enter 29ASDFG9812Q125 [Select not applicable [Select No Step 2: - Recérding Intra state outward supply of services, - To record the sales Transaction in A/c Invoice mode, Go to Gateway of Tally > Accounting vouchers > F8: sales. Click F2: Date and set the date to 8/7/2017 Enter the reference no .as SA/001. In the party A/c name field select TNY Industries Pvt. Ltd. 1 2. 3, 4. 5. Inthe party details screen, select the type of dealer a ; Tf 8. 9. Press Ctrl+A Under particulars select catering services. Enter the amount as Rs 5,00,000 Press Enter. mount will get capture automatically. |. Select central Tax ledger, the tax a 11. Select the state Tax: ledger, the tax amount will get captured automatically. 12: In the bill wise details screen, select new ref as the type of ref, and enter the name as SA/001. ww the tax calculation details. Scanned with CamScanner ae 15. Click Fl: Detailed 16.: Press ESC 17. Enter the narration. 18. Press Enter to accept. Since this is an outward supply, can be viewed in GSTR-1. To view GSTR-1, Goto gateway of Tally > Display > the tax implication of this transaction, Statutory Reports > GST > GSTR.1, The transaction is captured under B2B invoices. The taxable value jg %5,00,000 Central Tax value is Rs.45,000. Total tax amount is & 90,000, '5.5 Interstate supply of services: A supply of services shall be an interstate supply ifthe service provider and the service recipient are located in different states. Such a supply attracts integrated tax. Let us determine the place of supply and understand the taxability of this supply For example: Kodagu enterprises a dealer in hardware goods, located in Madikeri, Karnataka received an order from CJ traders, located in Vijayawada, Andhra Pradesh to supply 10 ASPEE spray sums for rubber plantation on which installation service is charged. Since the location of supplier isin Karnataka and the location of supply is in Kerala, this supply is an interstate supply, and attracts integrated tax. Interstate Inward supply : Illustration -4: Recording interstate purchase of services Date Particulars 10.7.2017 Voucher: Purchase JJ enterprises received a service from Tanya glass industries, Nalgonda; Telangana against window cleaning service rendered for €8,00,000. Additionally, GST @ 18%, is charged on the invoice with reference number 53/002. ‘Step1: Accounting Master creation Service expense ledger Windows Cleaning Services Against the Action to be performed Name Enter windows cleaning services Under Select Indirect expenses Inventory values are affected Select No IsGST Applicable [Select Applicable Set / alter GST details . Select Yes es HSN/SAC Details Description Enter windows cleaning services Scanned with CamScanner HsNSAC________| Enter 998532 inatre of translocation ____| Select not appli Tax: Details pereble qm [Select taxable xe Rates oie aia je Integrated Tax |9% gets auto - filled based on he : value of Integrated tax — ma i State Tax 9% gets auto ~ filled based on = = value of Integrated tax press Enter ae. Press enter to skip this ficld ‘Type of supply Select services Press enter to accept Party ledger Tanya Glass Industries Against the field Action to be perfonned Name Enter Tanya Glass Industries Under Select Sy. Creditors » Maintain balance bill by bill Default credit, period Check for credit days during voucher entry? inventory values are affected? PANAT No. Set / alter GST details Registration type [Select Yes Press enter to skip this field Select No Select No ‘Tax Registration Details [Enter ASDFH 5418Q Set to Yes GST Details Select as regular Enter 10ASDFH5418Q1Z5 GSTIN/UIN Party Type Select Not applicable Is a e- commerce operator Select No Press enter to accept Note: - The state code of Telangana Tanya Glass industries starts from the stat state is 10, hence UIN of the party e code 10 Integrated Tax Ledger Integrated Tax Aganstthe elation fo be performed N rEnter integrated tax : Niele) ge ET | Under URE yam oiate tania! pT ‘Type ofduty/tax Select duties and taxes Select GST Scanned with CamScanner D-14 Fe a | Tax type Select integrated tax [Select not applicable Rounding method Step 2: Recording Interstate Outward supply To record the inward supplies. 1. Go to gateway of Tally > Accounting vouchers > F4: Purchase. 2. Click F2: Date and set the date to 10/7/2017 3, Enter the supplier invoice no as JJ/002 and the date is captured as voucher date by default. 4. Inthe party A/c name field select Tanya glass industries. 5, Select the type of dealer as regular in the supplier details screen, 6. Press enter. 7. Under particulars field select windows cleaning service ledger. 8. Enter the amount as %8,00,000 and press enter. 9. From the list of ledger accounts, select the ledger integrated tax. the amount is filled automatically. 10. In the bill —'wise' details screen, select the type of ref as new ref-and enter the name as JJ/002. 11., Press enter. 12. Click A: Tax analysis to view the tax calculation. 13. Click Fl: Detailed. 14, Press ESC 15. Enter the narration if required 16. Press enter to accept Since this is an inward supply, the tax’ implication of this transaction can be viewed in GSTR-2 To view GSTR -2, Go to gateway of Tally > Display >statutory reports > GST > GSTR-2 The transaction is captured under B2B invoices. The taxable value is %8,00,000. The integrated tax value is €1,44,000. Interstate outward supply of services Illustration -5: recording interstate outward supply of services Date Particulars 12.7.17 ‘Voucher: Sales JJ enterprises rendered support service to crop production ‘on rubber cultivation worth %10,00,000. To CHM rubber industries, Siddipet, Telangana. Additionally, GST@ 18 % is charged on the invoice with reference number SA/002. Accounting vouchers > F8: sales, Click F2: Date and set the date to 12/7 / 2017. Enter the reference no as SA/002. Select CHM rubber industries in the field party is A/c name, Select the type of dealer as regular in the supplementary details screen Select the ledger support services under particulars Enter the amount as 10,00,000 and press enter Select the ledger integrated tax the amount is filled automatically In the bill wise details screen, select the type of ref as new ref, enter the name as SA/002. 10. Press CTRL+A 11. Click A: Tax analysis to view the tax calculation 12. Click Fl: Detailed 13. Press ESC 14, Enter the narration: 15. The sales invoice appears. 16. Press enter to accept Since this is an outward supply, the tax implication of this transaction can be viewed in GSTR-1 To view GSTR-1, Go to gateway of Tally > Display > statutory reports > GST > GSTR -1 The transaction is captured under B2B invoice. The taxable value is %10,00,000. The integrated tax value is & 1,80,000. Cancellation of services To revise the taxable value or GST charged in an invoice, a debit note! supplementary invoice or credit note must be issued by the supplier. A debit note is to’be issued by a supplier to record the increase in taxable value and the GST charged in the original invoice. A credit note is to be issued by a supplier to record the decre: value and the GST charged in the original invoice. PeIAweene ‘ase in taxable —_— | Scanned with CamScanner ear Credit notes must be issued on or before 30th ge of the financial year in which the supply was mad relevant annual return, whichever is earlier, Following are the mandatory components re: services in debit note and credit notes 1, Nature of the document must be indicated with as credit note. : Name, address and GSTIN of the supplier 3, A sequential serial number coniainin, unique for a financial year 4. Ifthe recipient is required, then need to provide the details like name, address, & GSTIN/Unique ID Number of the receipts 5. If the recipient is unregistered, then need to provide the details like name, address of the recipient, and address of delivery, with the state name and code Ptember following the end le or the date of filing of the quired for cancellation of h high importance, such ig only alphabets and / or numerals Serial number and the date of original tax invoice or bill of supply Taxable value of services, rate of tax and the amount of tax credited or debited to the recipient must be available 8. Signature or digital signature of the supplies Cancellation of inward supplies: with tax can be recorded usin; the supplier Cancellation of inward supply of services g a debit note as per the credit note provided by Illustration-6: Recording transaction for cancellation of intrastate inward supply of service with GST Date Particulars 18.7.2017 Voucher: Debit note JJ enterprises cancelled advertising Services as tamara act to provide the services as per the terms and conditions of the contract amounted %250,000 received on 1S/INT against the bill no JJ/003 with GST @18 % with central tax and state tax components, Step 1: Recording of intrastate purchase return transaction |. Go to gateway of Tally > click FI1: Features, Click Fl: Accounting features : : 2. Enable the options a) Use debit and credit notes b)_ Record credit notes in invoice mode ©) Record debit notes in invoice mode 3. Go to gateway of Tally > Accounting vouchers > F9: Debit note 4. Click F2: Date and set the date to. 18/7/2017 > Scanned with CamScanner 15. 16. 17. 18. 19. 20. . Enter the amount as Rs; " Select the ledger state tx ~ Select the ledger cen Set the option provi |. Inthe bill - wise details screen, select Agst Enter the original invoice no as 43/003 and enter the original inf date as 15/ 7/2017 In the party A/c, name Select the type of deal You will get the supp! the screen Under particulars field select Tamara Pvt. Ltd. s regular in the supplementary details Screen ler a s screen, press enter and ACeepy Jementary detail: field select advertising service ledger 250,000 and enter from the list of ledger accounts. The amount matically gets calculated autor tre tax from the list of ledger accounts. The amount gets calculated automatically. de GST details to Yes, enter the suppliers debit / d date as 15/7/2017. credit note no as 1 an t ref and select the bill number ‘33/003 from the list of pending bills. Press ctrl+A é Click A: Tax analysis to view the tax calculation Press F1: Detailed Press’ ESC Enter the narration if required Press enter to accept | Since this an inward supply the tax implication of this transaction can be viewed in GSTR -2 * To view GSTR -2, Go to gateway of Tally > Display > Statutory reports > GST > GSTR-2 The transaction is captured under B2B invoice the taxable value is % 2,50,000. The central tax amount is € 22,500, state tax is 22,500 ‘The tax Amount is ¥ 45,000. Illustration -7: Recording a partial cancellation of interstate inward supply ~ of service. Date Particulars 21.7.2017 Voucher: Debit note IN enterprises Cancelled windows cleaning services 3 Tanya Glass. Industries failed to provide the services 2 per the terms & conditions of the contract amounted Rs. 1,00,000 received on 20.7.2017 against the bill number JJ /004 with GST @ 18% with Integrated tax component, Recording of Interstate purchase return transaction. | | a Scanned with CamScanner ‘qo record the debit, note transaction in the books of JJ enterprises, follow the steps: Go to Gateway of Tally > Accounting Vouchers > F9: Debit note Click F2: Date and s¢t the Date to 21/7/2017 3, Banter the original Invoice no, as JJ /004 & the original Invoice date as 20/7/2017 4, Inthe party Alc name field select Tanya Glass Industries. 5, Press enter & accept the supplementary details screen. 6, Select windows cleaning services under particulars. 7, Enter the amount as %1,00,000 and press enter. 8, From the list of ledger accounts select the ledger Integrated Tax. The amt will be filled. 9, Set'the option- promote GST details to yes, enter the supplier's debit / credit note no. as 1 and date as 20/7/2017 10. Inthe bill wise details screen select against ref and select the bill number JJ. / 004 from the list of pending bills IL. Press Ctrl +A 12. Click A: Tax Analysis to view the tax calculation details. 13, Click Fl: Detailed 14. Press ESC 15. Enter the Narration, if required 16. Click enter to accept Since this is an inward supply, the tax implication of this transaction can be viewed in GSTR - 2 To View GSTR - 2 Go to gateway of Tally > Display > Statutory Reports > GST > GSTR-2 The Transaction is captured under B2B invoices. The taxable value is % 1,00,000. The integrated tax value is 718,000. Cancellation of outward Supply of Services: Illustration -8: Recording transaction for cancellation of interstate outward supply of setvice with GST. : Date Particulars 25.7.2017 Voucher’s Credit Note TNY Industries Pvt., Ltd., cancelled catering services as J) enterprises failed to provide the quality services as per the terms & conditions of the contract amounted % 50,000 received on 24.7.2017 against the bill no. SA/003 ‘with GST @ 18% with central tax and state tax components. Scanned with CamScanner Since this is an outward supply viewed in GSTR-1 To view GSTR-I, Go to Gateway of Tally > Display > Statutory reports > GST > Ggy, ‘The transaction is captured under B2B invoices. The taxable yar 50,000. The state tax. value is %18,000 and the centre tax values respectively. Let us now record the credit note in Tally ERPg, Step-1: Recording of Intrastate sales return transaction. ‘To record the credit, note transaction in the books of JJ enterprises, fog. the steps. : + olla 1. Go to Gateway of Tally > Accounting Vouchers >F8: Credit Note, 2. Click F2: Date & set the date to 25.7.2017 y 3, Enter the original invoice no. as SA/003 and enter the original invoig, no. as $A/003 and enter the original invoice date as 247.17. 4. Inthe party A/c name field select TNY Industriés Pvt,, Lid., Select the type of dealer as regular in the supplementary details screen, 6. You will get the supplementary details screen press enter and accept the screen. a 7. Under particulars field select catering services ledger. ie 8. Enter the amt as Rs. 50,000 and préss ent. 9. Select the ledger state tax from the list-of ledger accounts. The an gets calculated automatically. 10. Select the ledger centre tax from the list of ledger accounts. The gets calculated automatically. II. Set the option provide GST details to yes, enter the suppliers debit credit note no. as 1 and date as 24.7.2017 12. In the bill -wise details screen, select against ref, and select the bi number SA/003 from the list of pending bills 13. Press ctrl +A 14. Click A: Tax Analysis to view the tax calculation details. 15. Click Fl: Detailed " 16. Press ESC 17. Ent the Narration if required 18. Press Ent to accept : Once the above entry is recorded, go to Galway of Tally > Display Statutory reports GST >GSTR-1 outward cancellation of supply of services will capture in GSTR-1, the above entry captures urider credit / debit Notes: section, with the taxable value of %50,000 central tax amt of %4,500, stale” tax amt of %4,500 & Tax amt of 29000. the tax implication of this tansacti ion g He Vale j eX 4 555 i wa Scanned with CamScanner QL. What do you mean by services? Explain briefly about the determination of = v4 services and place of supply of services. thus Services ___ The American marketing association defines services as “services are the activities, bene Satisfaction which are offered for sale and provided in connection with the sale of goods”, MS oy vod a Setvice is an act or performance offered by one party to another, Although the Process may Hed toa physical product, the performance is essential intangible and does not normally result ia cima of any of the factors of productions. ° Services are applicable for tax as per the Central Government of India. Service is one of the used in the full form of GST ie., Goods and Service Tax. The introduction of GST imposed the ier services in a service tax category. All the services mentioned under the GST law are eligible for Senitg taxes, Determination of Supply of Services The Schedule-11 pf GST law provided the explanation and determination criterias for the type supply of services which would be applicable for service tax. It aims is to eliminate the confusion avaiais in the current indirect tax system. This schedule helps to determine the type of supply of goods and tre of supply of services. Based.on such determination that supply can be treated for tax purpose. Some ¢ the examples of supplies which may be helpful in determining the supply of services are as follous, > Transfer of goods without transfer of title. >» Leasing, tenancy and licensing for occupying land. > — Leasing or letting and building. > — Renting immovable property and so on. Alll the above are considered as supply of services. Determination of Place of Supply of Services Determinating the place of supply of services is very important for the appropriate calculation i tax. As the GST is variable and it is different for every state of India. Place of supply of services shoud compulsorily identified. Because services will be eligible for GST rates based on the area or state in! 160 Rahul Publications ee ._ gupplied OF consumed. 1nus, the place of supply of services i 7 : oe ot Ope services has been delivered, insaled or 4 i location of the supplier or the ‘te place of supply of services can be identified or determined based on two different types, th , they ae . tra-State Supply of Services - In intra-stat: i i [pte ent arta a me reso foe ervices tO XYZ company of Telangana. . company of Telangana supplied State Supply of Services - In inter-state i 2, Inter- : : tate supply of services, the place of supply of services and the location of the supply will be different. For example, ABC com of Telan: lied eenices to XYZ company of Delhi. a aa ee

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