Tally: Features and Benefits
Tally is software that is easy to use and very effective. It functions seamlessly at a high speed and is rated as one of the best software for accounting. This software supports many languages. This software enables the maintenance of accounts in one language and reports can be generated in other languages. Tally allows us to maintain records of up to 99,999 companies. All the employee records can be maintained using the payroll feature. It also helps in the generation of consolidated financial statements. With Tally, different types of reports can be generated which help in the management of sales and purchase, inventory, MIS, and Financial Management. When GST classification is used in relevant masters, then the tax details of goods or services are captured automatically. You will have to alter the GST classification and assign a new tax rate if any future amendments in the tax rate are made by the GST council.
Did you know: Tally was founded more than thirty-five years ago, in the year 1986.
Also Read: How to use Tally ERP 9. Release 6 for GST
The various taxation features in Tally
Tally's statutory and taxation features provide all requisite functions that are relevant to statutory compliance for businesses. The characteristics of statutes are country-specific and dependent upon the country. The different features available as a part of statutory and taxation are-
- Value Added Tax
- Goods and Service Tax
- Tax Collected at Source
- Tax Deducted at Source
GST Classification in Tally
GST Classification is a method of storing all GST information on a product or service, such as the GST rate, HSN, SAC, and other details, in such a way that it may be retrieved with a single click in the future. It is similar to creating a package and then using it whenever and wherever it's needed. For all goods which attract a distinct GST rate, you can create a GST Classification to record every details. This type of classification becomes very helpful and is used in all transactions. The details of goods and services will be automatically captured.
For example, You can simply pick GST Classification when establishing new stock items in Tally, and all GST details will be gathered and applied to the stock item automatically. Tally's GST classification system also works with ledgers that are used to provide GST-exempt services.
This is why GST Classification in Tally will save you a lot of time by allowing you to apply it straight instead of having to enter all of the GST details over and over again. You can create each tax classification that can be applied in accordance with your accounting method. If the GST council makes any changes to the tax rate in the future, you have to change the GST classification and assign the new tax rate.
The procedure of GST classification in Tally
Given below is a detailed step-by-step procedure for GST classification in Tally.
- At the start, click on the option that states, Enable Goods and Service Tax, under the statutory taxation feature under F11.
- Type Yes against the option to set or alter GST details. You will find a GST detailed menu.
- In the GST detailed menu, you will find the second last option which states how to enable GST classification.
- Type the word, Yes against it, and then press the enter key to save the screen.
HSN Code based GST classification
For enabling HSN code based GST classification, please follow the instructions given below:
- You have to go to Gateway of Tally > Accounts Information > Statutory Information > GST Classification > Create
- Select the nature of the transaction if required. The nature of the transaction is determined by the party's Registration Type, State, and Country. As a result, there is no obligation to pick the transaction type.
- In the case of branch transfers, consignment transfers, work contracts, and so on, you must adjust the nature of the transaction accordingly.
- Enter the Integrated Tax and Cess rates, if applicable. The integrated tax rate entered will be split evenly between central and state taxes. By selecting F12: Configure, you can add further GST details to the GST classification.
How to use GST classification for setting GST Rate details
The GST rate can be set up by using GST classification. The process involved is as follows:
- You have to go to Gateway of Tally > Display > Statutory Reports >GST > GST Rate set up
- Choose the items which have the specified HSN Code.
- Press Set Rate, and choose the GST Classification.
- Create different classifications for items that come under different HSNs and attach them to the required items.
Also Read : All About Vouchers in Tally.ERP 9
What is the procedure for alteration of GST Classification?
Given below are the important steps to be followed in order to alter a GST classification:
- Go to Gateway of Tally > Accounts Info. > Statutory Info. > GST Classifications > Alter.
- Indicate the new rate.
- Press the Enter key twice
- Save with the altered applicability from date.
Some of the benefits that the Tally Software provides are given below
Accessing the Documents quickly
Tally can save all invoices, receipts, bills, and vouchers in its archive folder for quick access. We can instantly access any of the previously saved papers using Tally. We have immediate access to all billing-related files.
This entails a number of computations when disbursing salaries to employees. Tally is used to keep a track of the company's financial records, which include net deductions, net payments, bonuses, and taxes.
Data accuracy and security
The data entered in Tally is accurate and safe. After the data has been entered into the software, there is no way to change it.
An extremely simple process of filing of tax returns
GST in tally is utilised to guarantee that a firm meets all GST compliances.
It functions as an audit tool for compliance
It is used to conduct company audits on a regular basis. It performs a thorough compliance review prior to the start of the financial year to guarantee that all monetary transactions are completed efficiently.
We hope the article has given you relevant information about different statutory and taxation features, GST Classification in Tally, including HSN Based classification, and enabling GST in tally and altering the GST classification. Using GST classification is one of the most time-saving options though you have to enable it to view it in Tally. Tally users can also use the Biz Analyst App to manage the business more effectively. You can manage the accounts, make ledgers, and even do data entry to keep the business on the right track.