https://help.tallysolutions.com/docs/te9rel64/Tax_India/VAT/TaxRateSetup/Tax_Rate_Setup_FAQ.htm

FAQ on Tax Rate Setup for VAT and Excise

This topic lists the FAQ on tax rate setup applicable in Release 5.x for VAT and Excise.

Query

How to create a new stock group from Tax rate setup?

Solution

If stock groups (other than primary) already exist in the company, place cursor on any stock group and press Alt +C. If no stock groups are available in the company, place cursor on any stock item and press T : Alter Group . Now, press Alt + C to create a new group.

Query

Tax rate setup option is not available for a particular company. Why?

Solution

Tax rate setup report is available only in a company which was created in any release prior to Release 5.0 and later migrated to Release 5.x. If a company is newly created in Release 5.x, this report will not be available.

Query

Where can I find Tax rate setup option?

Solution

Tax rate setup is available under:-

1. Gateway of Tally > Inventory info > Tax Rate Setup

2. Gateway of Tally > Display > Statutory reports >Select VAT/Excise (as required)> Tax Rate setup .

Query

What are the details displayed in VAT rate setup?

Solution

VAT rate setup shows VAT rates at which stock items have been transacted in the given period. The latest rate at which a particular stock item has been transacted is displayed.

Query

If Stock group name is suffixed by (*) symbol, what does it indicate?

Solution

This indicates that the stock group has stock items which are taxed at different rates.

E.g. :-Item A and Item B are created under Group 1. Item A is transacted with VAT rate 5% and Item B is transacted with VAT rate 12.5%. In this case, Group 1 will be suffixed by (*) symbol.

Query

Can I configure VAT rate for a stock group when it is suffixed by (*) symbol?

Solution

It is not recommended to configure VAT rate for a stock group if it is suffixed by (*) symbol. The * symbol indicates that the stock group has stock items with different rates. In this case, it is recommended to create a sub group or configure VAT rate at item level.

Query

In VAT rate setup, stock item is suffixed by (*) symbol. What does it indicate?

Solution

If a stock item has been transacted at multiple VAT rates in the period, then, the stock item name will be suffixed by (*) symbol.

E.g. :- Item A has been transacted at the following rates:

From 1-4-2014 – Vat 5%

From 1-4-2015 – Vat 5.5%

In this case, item A will be suffixed by * symbol.

Query

What is the shortcut key in Tax rate setup to view the multiple rates at which a stock item has been taxed?

Solution

If a stock item has been taxed at multiple rates, the stock item name will be suffixed by * symbol. Place cursor on the stock item and press Shift + Enter to view the multiple rate details.

Query

Will Commodity name and commodity code get captured automatically when Tax rate is configured from Tax rate setup?

Solution

Yes. If commodity name and commodity code are provided in stock item in Release 4.9x, the details will get updated automatically when tax rate is configured from Tax rate setup.

Query

How to view the history of tax details when an item has been taxed at multiple rates in the given period?

Solution

Place the cursor on specific item > S : Set Rate > L: Details. The date-wise rates applicable for the item are captured.

Query

On clicking S : Set rate for a stock group, the tax details are blank. Why?

Solution

If a stock group has stock items with different rate of tax, then, S : Set rate will show blank details. These stock groups will be suffixed by (*) symbol. Hence, in this case, it is recommended to create sub groups or configure the tax details in specific items.

Query

What are the previous configuration details captured in Excise rate setup tool?

Solution

a. Stock items with different valuation type.

b. Stock items with different reporting UOM.

c. Stock items with different Excise Duty (%).

d. Stock items with multiple rates.

e. Stock items with individual rates.

f. Stock items under same group.

g. Stock items under different groups.

h. Stock items with Different Excise duty head configured (eg: - BED, SEC and EC).

Query

How to view the full duty details of any particular tariff?

Solution

Place cursor on Tariff and click F : Full Tariff Details.

Query

Excise stock item is suffixed by (*) symbol. What does it indicate?

Solution

If a stock item is transacted at multiple Excise rates, the stock item name is suffixed by (*) symbol.

E.g .:- Item A has been transacted at the following rates:

From 1-4-2014 – Basic excise duty 12%

From 1-4-2015 – Basic excise duty 12.5%

In this case, item A will be suffixed by * symbol.

Query

Excise tariff name is suffixed by (**) symbol. What does it indicate?

Solution

If tariff has duty heads other than CENVAT (E.g. Education cess, secondary education cess), the tariff name will be suffixed by (**) symbol.

Query

Which Excise configurations done in Release 4.9x are captured in Tax rate setup?

Solution

If Excise stock item is configured with HSN code, Valuation type, Reporting UOM and Duty type in previous release, then, all these information are captured in Tax rate setup tool and can be configured at stock group/item level.

Query

After configuring VAT and Excise details in stock groups/items using Tax Rate setup tool, is there any additional configuration to be done in stock groups/items?

Solution

No. All the required VAT/Excise configuration in stock groups/items can be done from Tax Rate setup tool and no additional configuration is required to be done.

See Also

Tax Rate Setup tool

Tax Rate Setup tool for VAT and Excise

What is tax rate setup? How can I use this report?

How to clear VAT configurations of 1 or multiple items from tax rate setup?

How to view configurations done previously in Release 4.9x in tax rate setup?

Explain the enhancements made in Tax rate Setup in Release 5.3?