Chapter - II ( SALES TAX ) Part -4

APPLICATION OF TALLY IN A TRADING UNIT

(COUNTRY TO COUNTRY PURCHASE AND SALE)

OR

(EXCISE AND IMPORT DUTY)

Here in this chapter we are going to discuss two aspects of excise and custom duty which is applicable while making trading between countries. That is Import Excise and Export Excise (Purchase Excise or Sales Excise).

1.   Purchase Excise:

Open Tally ERP 9 in educational or commercial mode. Go to company information menu and start creating the company. After company creation, in the gateway of tally section , press F11 key which will take you to the company features section. Where in the inventory feature section enable godown, category and discount section. Next move to statutory and taxation section and there enable GST tax feature. After enabling the tax feature select set or alter GST feature where put the valid GST regd.no of the company , fill up the other basic details and finally the most important enable LUT feature where put the regd. No , set the time period etc. , accept it and save it. Finally go to accounting feature option and there enable allow multiple currency option and save the feature.

Next press escape key , go back to gateway of tally again, where choose accounting info menu , select ledger and start creating ledgers as required.

1.   Supplier Ledger:

In the ledger creation box , put the name of the foreign supplier ( one for Item import and the second one for service import) in the name box , put it under sundry creditor group , add the correspondence address ( USA , SINGAPORE or any other foreign country). Here we are creating two creditor ledgers ; such as F  & B Enterprise of USA for goods import and Fashion House of SINGAPORE for fashion designing service,   Accept it and save it. And also if necessary define the basic currency symbol like dollar, pound etc.

2.   Customer Ledger:

In the ledger creation box, put the name of the local customer in the name box, put it under sundry debtor group, add the correspondence address , fill up the other basic details like GSTN regd, no etc., accept it and save it.

3.   Purchase Ledger:

In the ledger creation box ,  put the name as purchase ledger , put it under purchase account group, make GST applicable , make set or alter GST option to yes where put the nature of transaction as imports taxable , set the integrated tax or IGST as 18% , accept it and save it.

4.   Sales Ledger:

In the ledger creation box ,  put the name as sales ledger , put it under sales account group, make GST applicable , make set or alter GST option to yes where put the nature of transaction as sales taxable , set the central goods and services  tax or CGST as 9% , state goods and services tax or SGST as 9% accept it and save it. 

5.   Custom Duty Ledger:

In the ledger creation box ,  put the name as custom duty ledger , put it under purchase account group, make GST not applicable , make set or alter GST option to no , make include in accessable value calculation for GST to yes ,set appropriate to goods option and make method of calculation as based on value  option to yes. Accept it and save it.

6.   Education Cess Ledger:

In the ledger creation box ,  put the name as education cess ledger , put it under purchase account group, make GST  not applicable , make set or alter GST option to no make include in accessable value calculation for GST to yes ,set appropriate to goods option and make method of calculation as based on value  option to yes. Accept it and save it.

7.    Integrated Goods and Services Tax Ledger:

In the ledger creation box ,  put the name as IGST ledger , put it under duties and taxes  group, select type of duty as GST, choose tax type as integrated tax and set the tax rate as 18%,  accept it and save it.

8.   Central Goods and Services Tax Ledger:

In the ledger creation box ,  put the name as CGST ledger , put it under duties and taxes  group, select type of duty as GST, choose tax type as central tax and set the tax rate as 9%, accept it and save it.

9.   State  Goods and Services Tax Ledger:

In the ledger creation box ,  put the name as SGST ledger , put it under duties and taxes  group, select type of duty as GST, choose tax type as state tax and set the tax rate as 9%, accept it and save it.

10. Bank Ledger:

In the ledger creation box , put the name as BANK ledger, put it under bank accounts group, put the party`s account no , IFSC code , MICR code , Address etc ., accept it and save it. 

11. Fashion designing service ledger:

In the ledger creation box , put the name as fashion designing service , put it under purchase account group, make GST applicable , make set or alter GST option to yes where put the nature of transaction as imports taxable , set the integrated tax or IGST as 18% , accept it and save it.

After the required ledger creation, press escape key and go back to gateway of tally again, where select inventory information menu and start creating items or the product that you want to import or purchase.

Here in this module we have created one item in the name of Shirt, put under Gents wear group , define it by SK fashion brand, set the unit as no. or numbers , set the IGST tax rate as 18%, accept it and save it.

After the necessary ledger and item creation in the gateway of tally section we are now ready for the necessary transactions like purchase, sales, receipt and payment.

TRANSACTIONS:

a) Purchase Voucher:

In the gateway of tally section , go to transactions section and there choose accounting voucher option where Press F9 to get purchase voucher creation screen. 

In the purchase voucher screen put the name of the foreign supplier , put it under the purchase accounting group.Put the name of the item that you want to import 

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