https://help.tallysolutions.com/docs/te9rel64/Tax_International/Kenya_VAT/Gen_and_Filing_Returns.htm

Generating and Filing Returns - Kenya

All transactions in the books of accounts of the company will be analysed by the application to generate your returns. With Tally.ERP 9, you can be confident to file your returns accurately.

On this page:

Triangulation and Generating Returns

Resolving Exceptions

Filing Returns and Annexures

Return persistence and revised returns

Triangulation and Generating Returns

Based on the relevance to the returns, the transactions will be either included or excluded. However, you can move a transaction from included to excluded or vice versa.

Sometimes, due to gaps in the information entered, the application may not be able to decide if the transaction has to be included in the generation of returns. In this case, the transaction will be grouped under Uncertain Transactions.

Classification

Reason

Action

Included

All information that is required to effect the returns will be grouped under Included

From the Voucher Register, X : Excluded can be clicked to exclude the transaction, if required.

Excluded

A transaction is excluded because the nature of transaction doesn't affect the returns.

Drill down to the voucher level and confirm if the transactions have to be excluded, or make the required changes to include the transaction.

Uncertain

A transaction is grouped under uncertain because there is insufficient information to ascertain if the transaction has to be included for a return.

Drill down to the Summary of exceptions

Provide the required information and resolve the exception.

Resolving Exceptions

On resolving the exceptions, a transaction will either be included or excluded. All the included transactions will affect the returns calculation. The calculation of tax liability can be viewed in the return form.

To know more about resolving exceptions, see Summary of Exceptions .

Payment Details

This section displays the count of tax payments recorded for the return.

The period considered for displaying the payment details is different from that specified for the returns. This is because tax payments are made in the subsequent month. This can be beyond the range of the period specified for the return period. Hence, to display the payment details, an additional time period of one month from the return period, or the last voucher date will be considered.

From the return forms screen you can modify the payment period to make sure the tax payments made in the later period are considered.

The payment transactions will be grouped under Included or Excluded.

Included: All tax payments made in this return period, for the tax return.

Not Included: The payment transactions which have exceptions, and the ones having no implication on the return will be displayed here.

Filing Returns and Annexures

On resolving all exceptions, you can generate returns by exporting to CSV/ Excel format. All the required annexures can be generated after resolving exceptions. You can export the returns to CSV / Excel format, and then file your returns.

Due Dates for Filing VAT Returns

Registered person should file VAT Form-3 i.e. monthly return by the 20th day of the month following the tax period . Where the 20th day falls either on a weekend or a public holiday, the return must be submitted on the last working day prior to the weekend or public holiday.

The return must always be submitted whether there is tax payable or not.

Interest and Penalty for Late Filing of Returns

Failure to submit and late submission of returns or submission of payment returns without payment of the tax due is liable to a default fine of KSh 10,000 or 5% of tax due, whichever is higher.

An additional interest of 2% per month or part thereof is also levied on the amount remaining unpaid after the due date.

Return persistence and revised returns

Preserving returns

You can save the filed returns for reference. You can use this to compare and generate returns again. The history of the returns can be retained even after modification.

Revised returns

You can modify the returns for any given period (even after filing), and generate revised returns. If the returns have been already saved, you can either over write the changes or save it as revised returns.

Modified transactions/masters and re-compute

All modifications made in the masters and transactions will be tracked for a given period when saved. The changes are grouped as created, altered, deleted, or cancelled. You can view the voucher  as it was before modification, compare the values and decide to retain the changes or revert.

Return book

A return book register has the list of saved returns. You can navigate to a specific return, recompute, overwrite or save the revised returns from here.