New VAT Return for Orissa Form 201

Transcription

1 New VAT Return for Orissa Form 201

2 The information contained in this document represents the current view of Tally Solutions Pvt. Ltd., ( Tally in short) on the topics discussed as of the date of publication. Because Tally must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Tally, and Tally cannot guarantee the accuracy of any information presented after the date of publication. This document is for informational purposes only. TALLY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form, by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Tally Solutions Pvt. Ltd. Tally may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written licence agreement from Tally, the furnishing of this document does not give you any licence to these patents, trademarks, copyrights, or other intellectual property Tally Solutions Pvt. Ltd. All rights reserved. Tally, Tally 9, Tally9, Tally.ERP, Tally.ERP 9, Shoper, Shoper 9, Shoper POS, Shoper HO, Shoper 9 POS, Shoper 9 HO, TallyDeveloper, Tally Developer, Tally.Developer 9, Tally.NET, Tally Development Environment, Tally Extender, Tally Integrator, Tally Integrated Network, Tally Service Partner, TallyAcademy & Power of Simplicity are either registered trademarks or trademarks of Tally Solutions Pvt. Ltd. in India and/or other countries. All other trademarks are properties of their respective owners. Version: New VAT Return for Orissa Form 201/1.0/August 2009 Tally Solutions Pvt. Ltd i

3 Table of Contents New VAT Return for Orissa Value Added Tax (VAT) Form Orissa New VAT Return... 3 Purchase Value in Annexure... 3 Type of Dealer... 5 Transfer of Right to Use Annexure IIIA... 6 Works Contract... 7 Tally Solutions Pvt. Ltd ii

4 New VAT Return for Orissa Value Added Tax (VAT) Form 201 The Orissa Department of Commercial Taxes has introduced a new Format of VAT Return - Form 201for filling the VAT returns. The new Form 201 will capture all the VATable sales and purchases under GROSS values without affecting the entries with Debit Notes and Credit Notes (except those that are flagged Others, for non specific adjustment, which will effect the gross values). All Debit and Credit Note values will be captured in the corresponding Annexure and reported in the Form in their corresponding boxes. Exempted Sales/purchases will be captured after all adjustments i.e. NET. New flags have been introduced in Debit/Credit Note for capturing the values in Annexure V, for Effects of Credit/Debit Note Received. The flag Receipt of Credit Note from seller is used for recording the receipt of credit note from a supplier in the Debit Note and Receipt of Debit Note from Seller is entered in Credit Note as a flag for recording the Debit note issued by customers. These flags along with other flags will be captured in Annexure V. The Annexure requires capturing of Purchase value of goods and input tax paid on such goods when such goods are used for specified transfers either as sale or stock transfers. For filling the purchase values in the Annexures for the required sales transactions, a new sub form has been provided to capture the purchase value and tax amounts, which will then be displayed in the Annexure based on the sales classification. For works contractors, some amounts are allowed as eligible expenses either as labour charges or other expenses for determining the taxable turnover. A facility to derive the assessable value after all permitted deductions has been provided during the sales entry stage itself. A new sub form will be displayed to enter the deduction details for Sales Works 12.5% classification, which is a new classification. The option Type of Dealer has been introduced to get the values as per the requirements for Sales and purchase annexures appended to VAT Return. On the selection of this type of dealer for VATable classifications, the flag Is purchase against Tax Invoice is displayed along with the options Yes or No. This requires the capturing of values in Purchase Annexure since the purchases are from registered dealers and are against tax invoices only. For making adjustment entries to Input VAT and for transferring the amounts from Annexure to the Main Form, the required new journal adjustment flags have been provided. On using these flags, all adjustments will be captured either in the Annexure or in the Form as required to complete the comprehensive information. If the need arises to capture the purchase values for the Annexure or return in case of data that has been entered for a return period using the older releases of Tally, the voucher needs to be revisited and the purchase value has to be keyed in accordingly. It is mandatory to configure masters and use appropriate VAT/Tax Classification as provided in this Stat.900 ver. 90, to capture all the values in the Annexure and return. Tally Solutions Pvt. Ltd 1

5 For supporting the data entered till date in the new VAT Form 201, almost all the existing VAT/Tax classifications are retained and the functionality has been enhanced according to the requirements. Due to changes in the Form, some classifications are no more required and thus have been deactivated Stat.900 Version 90 (27 th August, 2009). Following is a list of deactivated VAT/Tax classifications: 1. Consignment Transfer Outward of 1% URD Purc 2. Consignment Transfer Outward of 12.5% URD Purc 3. Consignment Transfer Outward of 4% URD Purc 4. Sale of Drug at MRP 5. Sale of LPG at MRP 6. Sales to Diplomatic Missions & U.N. etc. 7. Sales to Local Agents 8. Taxable Purc Not Applicable for Input Tax Credit 9. Works 12.5% 10. Sales Zero Rated All entries passed using the above classifications till date, will be captured in the new Return in the appropriate boxes as required. Accordingly, some new classifications have been activated for the new Form VAT 201. The date of activation is shown for these classifications while creating the masters. Following is a list of such classifications: 1. Purchase of Capital Schedule D For Annexure III 2. Purchase of Capital 4% Schedule D For Annexure III 3. Purchase 1% - Box No Purchase 12.5% - Box No Purchase 4% - Box No % - Transfer of Right to Use For Annexure IIIA 7. 4% - Transfer of Right to Use For Annexure IIIA 8. Sales Exempt ( As per Notification) For Box No. 33(iv) 9. Sales Works - For Annexure IV For purchase of capital 12.5%, Schedule D is exempted purchases for which tax will be back calculated in the annexure as VAT needs to be shown in the Annexure. In addition to the above mentioned VAT/Tax Classifications, journal adjustment flags have been introduced for capturing the reversal of Input VAT as displayed in the Annexure. Using the appropriate flag, journal entries need to be passed to capture the reversal amount. By doing so the accounting ledger values are also updated accordingly (to arrive at the correct value as per returns and Books of Accounts). The new concept TYPE OF DEALER has been introduced to support the correct generation of Returns and Annexure from Tally.ERP 9. The Dealer types provided for selection are: 1. Consumer To be selected for non-traders 2. Interstate Dealer To be selected for Interstate Sales and Purchases 3. Registered Dealer To be selected for generating the Sales/Purchase Annexure 4. Un-Registered Dealer To be selected for traders who are not registered. The Type of Dealer restriction is provided in order to print the Annexure as required by the Form. The Registered Dealer option will display the option Is purchases against Tax Invoice in the purchase voucher along with any taxable classification selected. If the type of dealer and the option is not selected, the Sales or purchase Annexure will not display any values, as the Purchase Annexure is required to be filled with Purchases from Registered Dealers against a Tax Invoice only. If these options are not selected the Sales/Purchases Annexure will be blank. For a detailed explanation of this new functionality, kindly refer to the Statutory Reference Manual for Orissa State which can be downloaded from the download center of You can also call us at or or mail us at support@tallysolutions.com. Tally Solutions Pvt. Ltd 2

6 Orissa New VAT Return A Brief explanation this New Functionality for Quick Reference The New VAT Return and Annexure require some additional information to be captured like purchase value of goods for sale or transfer of goods under certain circumstances. A works contractor has to file a separate annexure by providing details like total value of labour charges and other expenses allowed as deduction from the total gross receipts. The new VAT Return as provided now in Stat.900 Version 90 will facilitate the filling all these values in the Return as well as Annexure without the need for any manual entry. Major functional enhancements in Stat.900 Version 90 are: Purchase Value in Annexure For some categories of Sales, if the output VAT/CST payable is less than the input VAT Credit taken on the goods purchased and used for making such sales, the input tax credit in excess of VAT/CST payable cannot be taken into consideration. In such cases, the excess input tax credit needs to be reversed. For determining the credit taken on such transactions, the purchase value needs to be captured in the respective sales categories Annexure. For entering the purchase value along with the sales transactions, one small sub form will be displayed where the user can enter the purchase value. This will be captured in the respective sales annexure under purchase value columns. The excess Input VAT credit over and above the VAT/CST payable can be reversed by passing a journal entry provided for the respective category of Sales. An example referring to Interstate sales Transactions is described herewith for your reference. Fig. 1 Enter the purchase value of goods, select the rate of Tax and enter the Input tax paid. These values will be captured in the corresponding annexure - Annexure II for Interstate sales. This Annexure is shown Fig. 2: Tally Solutions Pvt. Ltd 3

7 Fig. 2 For capturing the value in Box No. 05 of the VAT Form, a Journal entry needs to be passed in order to match the Books of Accounts with the Form as the ITC needs to be reduced. The Journal entry will be marked with the flag Reversal Input tax credit on capital goods. Dr. Purchases (purchase ledger) Rs. 1, Cr. Input vat A/c (VAT Ledger) Rs. 1, The respective classifications need to be selected for purchases and tax ledgers. The values will be captured in Form 201 only after passing this entry. As mentioned above, the purchase value sub form will be displayed for the following VAT/Tax classifications: 1. Consignment/Branch Transfer outwards 2. Consignment Transfer Outward of 1% Taxable Purc 3. Consignment Transfer Outward of 12.5% Taxable Purc 4. Consignment Transfer Outward of 4% Taxable Purc % - Transfer of Right to Use 6. 4% - Transfer of Right to Use 7. Stock Transfer Outwards If these classifications are selected during voucher entry (Item Invoice, Accounting Invoice and Voucher mode), the purchase value needs to be entered. If the purchase value is not entered, the purchase value columns boxes will be displayed as blank boxes. Important Note: If the purchase values are to be captured in the Annexure for older entries also, then it requires alteration of the old vouchers for keying in the purchase value for capturing the same in the annexure. Tally Solutions Pvt. Ltd 4

8 Type of Dealer The Type of Dealer needs to be selected for generating the Sales and Purchase Annexure that are appended to the VAT Return Form. It is mandatory to select the type of dealer as the Sales and Purchases Annexure require the information of sales and purchases made to registered dealers against Tax invoices. A new option has been provided in the purchase voucher. On selection of the type of dealer in the party master or the supplementary details screen (for cash etc.), along with any taxable VAT/Tax classification, an option Is Purchases against Tax invoice will be displayed with default the selection as YES. Only these types of entries will be captured in the Purchase Annexure appended to VAT Return Form 201. Fig. 3 Tally Solutions Pvt. Ltd 5

9 Transfer of Right to Use Annexure IIIA The Transfer of Right to Use information needs to be captured in Annexure IIIA along with additional details like the agreement date and total consideration for the contract. Additionally the purchase value of goods and input tax paid on such purchases used for Transfer of Right to use goods need to be captured in Annexure IIIA. A sub Form will be displayed for entering these values on selection of the classifications - Transfer of Right to Use and 4% - Transfer of Right to Use. Fig. 4 All these values are captured in the Annexure IIIA under their corresponding columns as shown in Fig. 5: Fig. 5 For transferring the Total Creditable input Tax as shown in Box No.5, a journal entry needs to be passed using the adjustment flag Adjustment towards Transfer of Right to use, as shown in the following table (respective vat/tax classifications are selected): Dr. Input Vat A/c Rs. 6, Cr. Purchases A/c Rs. 6, This Journal entry need to be passed to increase the ITC claimed in the Books of accounts and also for capturing the values in VAT Form 201 in Box No. 27. Tally Solutions Pvt. Ltd 6

10 Works Contract The works contractor has to provide the details regarding gross amounts received and the labour charges involved in the works contract price. The tax amounts are to be calculated after deducting the labour and other charges. In order to enter all this information, a new functionality has been provided for the works contract classification (newly activated). Select this classification and enter the inventory values and sales classification Sales Works 12.5%. Fig. 6 These values will be captured in Annexure IV in their corresponding columns and the Tax will be calculated on the Net Value only. All values are entered in a single invoice. Annexure IV is displayed as shown: Fig. 7 The Tax value and the assessable value will be captured in the Form in Box No. 33 as per the requirement. For a detailed explanation of this new functionality, kindly refer to the Statutory Reference Manual for Orissa State which can be downloaded from the download center of You can also call us at or or mail us at support@tallysolutions.com. Tally Solutions Pvt. Ltd 7