Bill By Bill Adjustment

BILL BY BILL: -Normally in a business the transaction with suppliers & customers are numerous and repeating. in most cases credit is available for some period and payment become due after credit days.

Payment is made when bill become overdue. Sometimes instead of making full payment of a bill, pay part of bill or pay lump sum amount against outstanding bills and then settle the account periodically. In view of these complexities, it may not be sufficient to know just the ledger balance of such accounts but you may need to know the bill wise balance of outstanding. You need to maintain more details like original bill amount, credit days, and outstanding payment with bill wise break up. Get such finer details of required ledger accounts of the sundry debtors & creditors, 

 

Tally provides an additional feature termed bill by bill details. It also has features to calculate the interest as per user defines.

Bill by bill

1)     Create company

2)      Press f11 and then press f1 (Enable all four options of outstanding management). Then press (ctrl+ a).

3)     Then go to the gateway of tally and create single ledger  

4)     Notes: -

a)      Maintain balance bill by bill :-Only enable in case of sundry creditor and sundry debtor.

b)     Inventory values are affected: -Enable only in case of Purchase, sales, purchase return and sales return.

c)      Activate interest calculation: -Enable in case of sundry debtor and sundry creditors.

 

5)     In ACTIVATE INTEREST CALCULATION define parameter as followings: -

 

 

6)     after create ledger go to gate way of tally and create voucher entry as your sums: -

7)     press f2 for changing the date according your entry.

 

SUMS FOR PRACTICE

TEST-1

1st April              Started business with furniture 50000 and land and building 500000 Rs....

3rd April             Purchase some goods from Mohan cost price 150000 Rs.... @ 15% trade discount paid half amount same time and balance on 5 days credit period then after 5% interest will be charged.

10th April           Sold half of above goods @ 20% profit and received 25% amount same time by cheque and balance on 3-day credit period then after 6% interest will be charged (Sohan)

15th April          Sohan returned half of above goods due to some technical fault.

20th April          Paid to Mohan balance amount by cheque.

25th April          Sohan settled his account by   full and final payment by cheque.

 

TEST-2

1st April              Started business with cash 5, 00,000 and bank balance 25,000.

3rd April             Purchased some goods from ram cost price 1,50,000 @ 10% trade discount and 5% cash discount paid 70% amount same time and balance on 3 days’ credit period then after 5% interest will be charged.

5th April              Sold furniture to Hari Shankar cost price 25000 @ 10% loss and received half amount same time and balance on 10 days credit then after 5% interest will be charged.

10th April           Returned half goods to ram due to some technical fault.

25th April           Paid to ram balance amount.

28th April           HARI Shankar become insolvent and received only 60% amount from him.

25th may            Received balance amount from Hari Shankar which was already transferred into the bad debts account.

TEST-3

1ST APRIL          Started business with cash 1, 50,000 Rs.... bank balance 250000 Rs....

2nd April            Purchased some items from A Kumar cost 15,000 Rs.... @ 10% trade discount and paid half amount same time balance on 3 days credit period then after 5% interest will be charged.

12th April           Purchase again some items from A kumar cost 25,000 Rs.... @ 5% trade discount and all item on 3 days credit period then after 5% interest will be charged.

18th April           Sold some items to B Kumar cost 45,000 Rs.... And paid half amount same time and Balance on 5 days credit period then after 5% interest will be charged.

19th April           Paid to A Kumar 30,000 Rs.... Against due amount by cheque.

25th April           Received from B Kumar whole balance amount. By cheque.

30th April           Above cheque deposited into the bank.

 

TEST-4

1st April              Started business with land and building 250000 and furniture 50000 Rs....

3rd April             Sold some items to Mona cost price 25000 Rs... @ 10% trade discount and 5% cash discount half amount received by a draft and balance on 3 days credit period then after 5% interest will be charged.

4th April              Sold furniture to raj Kumar cost 150000Rs.on 3 days credit period then after 5% interest will be charged.

10th April           Received 10000 Rs... From Mona as, full settlement of his account.

15th April           Purchase goods from Sona cost price 200000 @ 5% trade discount and paid 25000 Rs... Same time and balance on 5 days credit period then after 5% interest will be charged.

25th April           Raj paid us full amount by cheque.

 

TEST-5

1st April              Started business with cash 15000 Rs. and bank balance 25000 Rs. and land and building 150000 Rs....

3rd April             Purchased some goods from Vinod cost price 250000 Rs... Paid 20% amount same time and balance on 5 days credit then after 5% interest will be charged.

8th April              Sold furniture to Krishna cost 125000 paid 70% amount same time and balance on 3 days credit period then after 5% interest will be charged.

15th April           Paid balance amount to Vinod by cheque.

20th April           Krishna paid balance amount in cash

3rd may              Above cheque bounced.

 

Inventory

 Inventory as A Dealer

1.     Create company

2.     Go to gate way of tally and in account info > create ledger > (press f11 if bill by bill info required) 

3.     Go to gate way of tally again and in inventory info > create stock group (row met, finished goods)

4.     Then create unit of measure (pcs, kg, or Ltr. as per ur sum required)

5.     Then create stock items like (monitor, mouse etc.)

6.     Then go to gateway of tally and in accounting voucher create voucher as per your sum

SUMS FOR PRACTICE

TEST-1

1st April.    Purchased some goods from Raj and Sons on 3 days credit Period then after 5% interest will

                   be charged items are as followings: -

                   Samsung mobile 15 @ 25000 Rs. each

                   Nokia mobile 15 @ 12500 Rs. each

                   China mobile 15 @ 2500 Rs. each

                    And 500 Rs. carriage extra paid half amount same time and balance on credit.

5th April             Sold some of above item on 25% profit Items are as followings: -
                           5 Samsung, 5 Nokia & 5 China mobile.

12th April           2 China mobile gave as charity to Harish.

19th April           2 Nokia mobile returned to Raj and Sons.

20th April           Paid wages to Hari Shankar 15000 Rs. by Cheque.

21ST April          Loss by thief 2 Samsung mobile.

25th April           Mobile recovered by police and handover.

1st April      Started business with land and building Rs. 2, 50,000 and bank balance Rs. 25000.

3rd April     Purchased some goods from Raj Kumar (manufacturer) on 5 days credit period  then after 5% interest will be charged items

                   are as followings: -

                    1000 Mtr.           Leather                100 per/ Mtr.

                    1000 Mtr.           Threads               .50 per/ Mtr.

                    800 Mtr.              Clothes                10 Per/ Mtr.

                    250 pcs                Hooks   1 per/ pcs

10th Apr      Sold followings @ 20% profit to Karan Kapoor: -

60 MTR. leather

100 MTR. threads

120 PCS hooks

60 MTR. Clothes

 INVENTORY AS MANUFACTURER: -

1.    Create company

2.    Go to gate way of tally and in account info > create ledger > (press f11 if bill by bill info required) 

3.    Go to gate way of tally again and in inventory info > create stock group (row met, finished goods)

4.    Then create unit of measure (pcs, kg, or Ltr. as per ur sum required)

5.     Then create stock items like (monitor, mouse etc.)

6.    Then go to gateway of tally and in accounting voucher create voucher as per your sum

7.     If in sum assembling option given then go to the inventory voucher option after purchase voucher entry and transfer stock from row met to finish goods

        Like if we want to assemble 5 computers from its part then

                 Monitor                   5             15000   ……….               Computer           5             ……         total value

                  Keyboard               5             15000   ……….

                  Mouse                    5             15000   ……….

                   CPU                      5             15000   ……….

SUMS FOR PRACTICE

TEST-1

1st April              Started business with cash 15000 Rs. and bank balance 15000 Rs.

3rd April             purchased some items from Mohan Pvt. ltd. Delhi on 3. Days credit period then after 5% interest will be charged items are as followings: -

15 timer @ 1500 Rs. each

15 fuse conductor @ 150 Rs. each

15 body of bomb @ 2000 Rs. each

15 plates of gold @ 15000 Rs. each

15 plates of silver @ 2500 Rs. Each

Carriage 15000 Rs. extra paid half amount same time and balance on credit.

7th April              Assembled 7-time bomb in Faridabad and also spend followings on its assembling: -

Wages 7000 Rs.

Monogram 700 Rs.

18th April           sold 4-time bomb to Khushboo @ 40% profit in cash.

19th April           Khushboo returned one-time bomb due to some technical fault.

21st April           One-time bomb loss by fire

25th April           Bomb was insured so make insurance claim

30th April           Insurance Company admit the claim and payment made by Cheque.

 

TEST-2

1st April              Started business with land and building value 5,00,000 Rs.

2nd April            Purchase some items from Hari Shankar on 5 days credit period then after 10% interest will be charged items are as followings: -

15 Mother board @ 3,500 Rs. Each

15 Processor @ 7,900 Rs. Each

15 Ram @ 1,500 Rs. Each

15 Hard disk @ 3,350 Rs. Each

15 DVD r/w @ 1,000 Rs.  Each

Carriage 1,500 rs. Paid half amount same time and balance on credit.

5th April        Assemble 8 CPU and also spend followings on its assembling

8000 Rs wages

800 Rs misc. Exp.

15th April   Sold 5 of above CPU @ 20% profit to Shyam on 6 days credit then after 10% interest will be charged.

20th April           2 CPU loss by theft.

25th April           Above CPU was insured so make claim.

30th April           Insurance company recovered the CPU and handover to the business.  

 

Indian Tax Structure

Tax: -  Tax is a fee charged by the Govt. on services and production of products.  

Indirect tax: - it is a tax charged on services and production. Total tax finally transferred to the consumer so the liable person is consumer but the consumer paid that tax to the seller and the seller pay that tax to the Govt. that’s why it is called indirect tax. Like: - vat, sale tax, excise etc.

Direct Tax: - Direct tax means the tax which is directly paid to the govt. by the accesses person. Like: -income tax, house tax etc.

Goods  And Services Tax

What is GST in India?

GST (goods and services tax) is an Indirect Tax which replaced many Indirect Taxes in India. The good and services tax act was passed in 1^st July 2017 and has been implemented since then. GST is an indirect tax for the whole nation, which makes India one unified common market. It is a single tax on the supply of goods and services.

Before GST, taxes such as service taxes, state vats, entry taxes, luxury taxes were applied on goods. These taxes have been absorbed under GST. Similarly, Service tax, entertainment tax was levied on services. Now there is only a single tax, that is, GST.  Under GST, tax is levied directly at every point of sale.

After implemented GST 3 kinds of GST applicable: -

1.       CGST       : - Revenue of tax will collected by the central govt.

2.     SGST       : - Revenue of tax will collected by the state govt. for intra State sale.

3.       IGST        : - Revenue of tax will collected by the central govt. for inter  State sales

 

Transaction	Old tax system	New tax system	remark
INTRA-STATE SALES	VAT/Central excise/ST.	CGST + SGST	Amount shared between state and central govt.
INTER-STATE SALES	CST + Excise/ST.	IGST	Full amount collected by central govt.

 

What is GST Registration

In the GST businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.

For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.

Types of GST Registration

1. Normal Taxpayer: - This category of GST registration applies to taxpayers operating a business in India. Taxpayers registering for normal taxpayer does not require a deposit and also provided with unlimited validity date.
2. Composition Taxpayer: - Businesses with annual turnover up to Rs 1.5 crore can opt for composition scheme , the individual should enroll under GST Composition Scheme. Taxpayers enrolled under the Composition Scheme can pay a flat GST rate. However, the taxpayer would not be allowed to claim the input tax credit.
3. Casual Taxable Person: - Any taxpayer establishing a stall or seasonal shop shall register under Casual Taxable Person. To register as a casual taxable person, the taxpayer shall pay a deposit equal to the amount of GST liability. The liability should match the active registration periods. The registration remains active for a period of 3 months.
4. Non-Resident Taxable Person: -The category non-resident taxable person applies to individuals located outside of India. The taxpayers should and supplying goods or services to residents in India. To register as a casual taxable person, the taxpayer shall pay a deposit equal to the amount of GST liability. The liability should match the active registration periods. The registration remains active for a period of 3 months.

Documents Required for GST Registration

1.       PAN of the Applicant

2.       Aadhaar card

3.       Proof of business registration or Incorporation certificate

4.       Identity and Address proof of Promoters/Director with Photographs

5.       Address proof of the place of business

6.       Bank Account statement/Cancelled cheque

7.       Digital Signature

8.       Letter of Authorization/Board Resolution for Authorized Signatory

 Types of GST Returns and Due dates

 

In GSTR-1, only sales and sales return details are to be filed. It includes all types of sales and sales return like B2B, B2C, export sales, exempted sales and also amendment in invoices previously uploaded.

Due date for filing GSTR-1 for monthly filers is 11th of the next month and for quarterly filers is 13th of next month of quarter. 

GSTR-2A: - is a view-only GST return. It contains the details of all inward supplies of goods and services i.e., purchases made from GST registered suppliers during a tax period.

The data is auto-populated based on data filed by the corresponding suppliers in their GSTR-1 returns.

Since GSTR-2A is a read-only return, no action can be taken in it. However, it is referred by the buyers to claim an accurate Input Tax Credit (ITC) for every financial year, across multiple tax periods. In case any invoice is missing, the buyer can communicate with the seller to upload it in their GSTR-1 on a timely basis.

GSTR-2B is again a view-only static GST return important for the recipient or buyer of goods and services. It is available every month, and contains constant ITC data for a period whenever checked back.

ITC details will be covered from the date of filing GSTR-1 for the preceding month (M-1) up to the date of filing GSTR-1 for the current month (M). The return is made available on the 12th of every month, giving sufficient time before filing GSTR-3B, where the ITC is declared.

GSTR-3B :- In GSTR-3B, summary of all transactions is to be entered. Details of each invoice is not entered in GSTR-3B.

Before final submission of GSTR-3B, it is required to pay the tax and late fees due. Otherwise, you cannot file the return.

Note – Late fees for a month/quarter is payable in next month/quarter.

Due date to file GSTR-3B is 20th of next month for monthly filers and 22nd or 24th (state-wise) of next month for quarterly filers as under

GSTR-4 is the annual return that was to be filed by the composition taxable persons under GST, by 30th April of the year following the relevant financial year. It has replaced the erstwhile GSTR-9A (annual return) from FY 2019-20 onwards.

Prior to FY 2019-20, this return had to be filed on a quarterly basis. Thereafter, a simple challan in form COM-08 filed by 18th of the month succeeding every quarter replaced it.

The composition scheme is a system in which taxpayers dealing with goods and having a turnover up to Rs.1.5 crores can opt into and pay taxes at a fixed rate on the turnover declared. Further, the service providers can avail a similar scheme CGST (Rate) Notification 2/2019 dated 7th March 2019 if turnover is up to Rs.50 lakh.

 

GSTR-5 is the return to be filed by non-resident foreign taxpayers, who are registered under GST and carry out business transactions in India.

The return contains details of all outward supplies made, inward supplies received, credit/debit notes, tax liability and taxes paid. 

The GSTR-5 return is to be filed monthly by the 20th of each month under GSTIN that the taxpayer is registered in India.

GSTR-5A: -refers to a summary return for reporting the outward taxable supplies and tax payable by Online Information and Database Access or Retrieval Services (OIDAR) provider under GST.

The due date to file GSTR-5A is the 20th of every month.

GSTR-6  is a monthly return to be filed by an Input Service Distributor (ISD).

It will contain details of input tax credit received and distributed by the ISD. It will further contain details of all documents issued for the distribution of input credit and the manner of distribution.

The due date to file GSTR-6 is the 13th of every month.

GSTR-7 is a monthly return to be filed by persons required to deduct TDS (Tax deducted at source) under GST.

This return will contain details of TDS deducted, the TDS liability payable and paid and TDS refund claimed if any.

The due date to file GSTR-7 is the 10th of every month.

GSTR-8 is a monthly return to be filed by e-commerce operators registered under the GST who are required to collect tax at source (TCS).

It contains details of all supplies made through the e-commerce platform, and the TCS collected on the same.

The GSTR-8 return is to be filed on a monthly basis by the 10th of every month.

GSTR-9 is the annual return to be filed by taxpayers registered under GST. It is due by 31st December of the year following the relevant financial year, as per the GST law.

It contains the details of all outward supplies made, inward supplies received during the relevant financial year under different tax heads i.e. CGST, SGST & IGST and a summary value of supplies reported under every HSN code, along with details of taxes payable and paid.

It is a consolidation of all the monthly or quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed during that financial year. GSTR-9 is required to be filed by all taxpayers registered under GST.

However, there are few exceptions such as taxpayers who have opted for the composition scheme, casual taxable persons, input service distributors, non-resident taxable persons and persons paying TDS under section 51 of the CGST Act.

Note: As per the CGST notification no. 47/2019, later amended, the annual return under GST for taxpayers having an aggregate turnover that does not exceed Rs.2 crore has been made optional for FY 2017-18, FY 2018-19 and FY 2019-20.

GSTR-9A:-is currently a suspended annual return earlier required to be filed by composition taxpayers. It had a consolidation of all the quarterly returns filed during that financial year.

Ever since GSTR-4 (annual return) was introduced from FY 2019-20, this return stands scrapped. Prior to that, GSTR-9A filing for composition taxpayers had been waived off for FY 2017-18 and FY 2018-19.

GSTR-9C is the reconciliation statement to be filed by all taxpayers registered under GST whose turnover exceeds Rs.2 crore in a financial year, as per the GST law. 

Tax Deducted At Source (TDS)

 TAX DEDUCTED AT SOURCE: -  The concept of TDS was introduced in the Income Tax Act, 1961, with the objective of deducting the tax on an income, at the source of income. It is one of the indirect tax collecting methods of collecting Income Tax, which ensures regular flow of revenue to the Government. Such collection of tax has an effect at the source when income arises or accrues. The buyer (deduct or) deducts the tax from the payment made to the seller (Deductee) and remits the tax to the Income Tax Department within the stipulated time. 

Example:- Escorts Pvt ltd. is making the payment towards Rent to the owner of the building, it is required to deduct the tax on the income (i.e. before payment to the owner), at the source of income.

 TDS Process

·         A seller (Deductee) provides services to the buyer (Deductor).

·        The buyer deducts the Tax at the time of payment of advances or while accounting the Bills received.

·         The buyer deposits the deducted amount to the designated branches of the authorized bank

·         The buyer issues Form No.16A to the Deductee

·         The buyer files annual returns electronically to the Income Tax department.

·         The seller files return, along with Form 16A claiming the credit of the Tax deducted at source.

Time & Mode of TDS Payment

·         All the Tax deducted during a month is to be paid to the credit of Government on or before 7th of the next month. In case 7th of the month happens to be a Sunday or a bank holiday payment can be made on the next working day

·         TDS amount shall be paid to the government account through any designated branches of the authorized banks, along with Income Tax Challan No.281.

·         In case of collections made by or on behalf of the Government, the amount shall be credited within the time and in the manner aforesaid without the production of a challan.

The Income Tax Department has prescribed the formats for filing these returns electronically, which the buyer does in a CD/floppy.

For additional details you can visit the Income Tax Website at http://www.incometaxindia.gov.in