Quick Setup for TCS in Tally.ERP 9
Did you know that in Tally.ERP 9, you can implement all statutory modules and Tally.NET service from just a single screen?
Implementing company statutory modules in Tally.ERP 9 involves setting up of statutory masters by entering the required details, creation of needed voucher types and going through advance setup if required. Similarly, setting up Tally.NET also requires creation of users with different security levels and defining various authorization rights based on business requirements.
Let us take an example. The standard steps required to implement statutory module for ‘Tax Collected at Source’ is shown in the image below:
Remembering the sequence of creation of all these ledgers, voucher types and various settings is not a simple task. But, Quick Setup provides a one stop solution that allows users to complete all these requirements in a sequential manner from a single screen. It helps users save time, prevent errors and makes implementing statutory modules in Tally.ERP 9 a stress-free experience.
Currently, Quick Setup feature in Tally.ERP 9 is available for 7 different modules and in this article let’s implement ‘Quick Setup for Tax Collected at Source’. To do this:
• Go to Gateway of Tally.ERP 9 > Quick Setup > Tax Collected at Source
Here, the screen has three different sections – Company Setup, Master Setup and Advanced Setup. It also shows the configuration details and status.
Company Setup: The ‘Company Setup’ is an option to update TCS details. To do this:
• Click ‘C: Company TCS Details Setup’
• Enter the required details
• Accept the screen
Master Setup: The master setup helps users create stock Items wi
th TCS details, tax ledger and party ledger. These are required in Tally.ERP 9 for TCS related transactions to generate various TCS reports and check exemption limit.
Stock Items: Various stock items are classified based on the TCS
Nature of Goods with different tax rates. Here, you can specify their individual group name and units of measurement.
• Tax Ledgers: The tax ledgers are captured in Sales and Purchase
transactions which in turn will automate the tax calculation. Here, you can create TCS ledger, specify the type of duty and select the relevant Nature of Goods (or contracts or license or lease).
• Party Ledgers: The party ledgers are created for buyers and sellers.
• Here, you can create party ledgers for Sundry Debtor or Sundry Creditor, specify their group, TCS applicability, the collectee/deductee type and PAN/IT number.
To show, how simple the TCS process is using the Quick Setup, let’s create a stock item with relevant TCS details as shown below:
• Press ‘Alt+S’ to open ‘Stock Items Setup’ screen
• Enter ‘Name of Item’ > Select ‘Primary’ from the list of groups in ‘Under’
• Select appropriate unit of measurement in ‘Units’
• Select the appropriate ‘TCS Nature of Goods’
• Press Enter to save
In the same way, you can create tax ledgers and party ledgers from Master Setup.
Advanced Setup: The advanced setup is an optional setup and it can be used for various specific requirements as follows:
• Configure Lower / No Collection (Sec 206C): You can enter party name, select appropriate group, specify collectee type, enable ‘
Lower / No Collection’ and enter details like Section number and TCS lower rate.
• Ignore Surcharge Exemption: When the turnover of the buyer/collectee exceeds the threshold limit prescribed by the government, the assesse is liable to pay Surcharge.
Using this option, you can setup the party ledger to calculate surcharge calculation by ignoring this exemption limit.
For example, if a party with a certificate for lower rate of TCS has applied for TCS lower rate, you can set up Lower / No Collection (Sec 206C) of TCS as follows:
• Press ‘Alt+L’ > Select the relevant party
• Set ‘Yes’ to ‘ Set Lower / No Collection’
• On the new screen, enter the tax rate specified in the certificate for Lower / No Collection in ‘TCS Lower Rate (%)’ > Accept the screen
• Enter ‘PAN or IT No’
• You can set up Lower / No Collection details for multiple party ledgers from this screen and once you are done, accept the screen
Similarly, you can set up party ledgers to ignore surcharge exemption from the advanced setup screen.
Hence now the Quick Setup wizard is here to help you through, with a simple solution for implementing all the statutory modules and Tally.NET.