On this page:
Recording Purchase Transactions
Recording Adjustment and Payment Transactions
2. How do I define tax rates at ledger level?
3. How do I define tax rates at stock item level?
4. How do I define tax rate for stock group?
1. How do I create a supplier ledger?
2. How do I create a customer ledger?
3. How do I create a purchase ledger?
4. How do I create a sales ledger?
5. How do I create a VAT ledger under Duties & Taxes?
1. How do I record local purchase transaction for items attracting multiple VAT rates?
2. How do I record purchases with additional ledger?
3. How do I record taxable purchase imports?
4. How do I record purchase imports?
5. How do I record exempt purchases?
6. How do I record zero rated purchases?
1. How do I record a local sales invoice for taxable goods with multiple VAT rates?
2. How do I record sales with additional ledgers?
3. How to enable Rate (Inclusive of Tax) for the stock items while passing invoice?
4. How do I record zero rated sales?
5. How do I record exempt sales?
6. How do I record export sales?
1. How do I record a purchase return?
2. How do I record a sales return?
3. How do I record a payment voucher?
4. How do I record a journal voucher for adjustment of VAT withheld?
5. How do I record a journal voucher for VAT refund claim?
6. How do I record a journal voucher for reversal of tax?
2. What are excluded transactions?
3. What are included transaction?
4. What are uncertain transactions?
5. How do I save the VAT return?
6. How do I recompute the VAT returns?
7. How do I export VAT Form-3?
8. How do I view included transactions details?
9. How do I view excluded transactions details?
1. How do I resolve Unable to determine country exception?
2. How do I resolve Unable to determine party's dealer type exception?
3. How do I resolve Unable to determine duty type of ledger exception?
4. How do I resolve Unable to determine the tax details of the stock group/stock item(s) exception?
5. How do I resolve Unable to determine the tax details of group/ledger(s) exception?
6. How do I resolve transactions accepted with tax information conflicts exception?
7. How do I resolve Mismatch in tax amount exception?
8. How do I resolve Unable to determine nature of adjustment exception?
1. What is PIN and what is its purpose?
Personal Identification Number (PIN) is a number which identifies a person for purposes of transacting business with Kenya Revenue Authority, other Government agencies and service providers. Personal Identification Number (PIN) is an Eleven-digit alphanumeric number. For example: P052246430R.
Force of Law on Having PIN
PIN is a statutory requirement under Section 123 of Income Tax Act (Cap 470 Laws of Kenya). It applies to every person who has income chargeable to tax under the Act or any person whom the Commissioner may so require to have it.
Obtaining PIN
Under Income Tax every Person who has income chargeable to tax under the act has to obtain PIN.
● Person includes both an Individual as well as Artificial Person (i.e. company, club, Trust etc.).
● A Partnership, where the partners are not husband and wife, must obtain PIN.
● A sole proprietorship can use the proprietor's individual PIN for all transactions.
Device number is the unique number given to the approved tax registers and other devices that have fiscal memory to issue sales documents. This provides a reliable means for the authority to check the total sales and tax payable by individual taxpayer.
3. What are the types of device available for Kenya region?
The type of devices supported in Tally.ERP 9 for Kenya region are;
1. EFP – Electronic Fiscal Printer
2. ESD – Electronic Signature Devices
3. ETR - Electronic Tax Register
4. Can I configure more than one device?
Yes. Multiple devices can be configured for a single company.
To enable multiple devices for a company
1. Go to Gateway of Tally > F11: Features > F3: Statutory.
2. Set Enable VAT? to Yes.
3. Click F12: Configure.
4. Enable the option Set multiple device details?.
5. Press Enter.
6. Enable the option Set device details? in Company Operations Alteration screen.
7. Select the Types of Device and enter the Device Number for each in the Device Details screen.
8. Press Ctrl+A to save.
5. Why and how to configure device detail in sales & credit note voucher type?
Tally.ERP 9 provides the flexibility to configure a separate device for each voucher type to help in faster data entry. This is possible in case multiple devices are enabled and configured for the company.
When there are multiple devices enabled, and device type and device numbers configured in Device Details screen. The device type configured already can be selected in the Types of Device field of Voucher Type Creation or Voucher Type Alteration screen.
6. What is withheld tax and when is it used?
It is a system which involves the declaration of VAT by both the supplier and his customer who has been appointed as a withholding VAT agent. Institutions appointed as withholding VAT agents are Government institutions, parastatals, banks, financial institutions, co-operative societies, insurance companies, and regular exporters.
When a taxpayer (trader) supplies and invoices an appointed withholding VAT agent the payment for supply is made less VAT charged or that which ought to have been charged. The agent withholds VAT irrespective of whether the supplier is registered for VAT or not. The agent issues a withholding VAT certificate to the supplier indicating the VAT withheld. This certificate entitles the trader to claim back the withheld VAT to avoid double taxation since the same tax is declared and paid by the trader through a VAT 3 return. Withholding VAT on taxable supplies not charged VAT is computed using the formula X - X/1.16 where X is the total value of the invoice or taxable supplies.
7. What are the type of goods available?
The type of goods options available are goods and services.
8. What are the types of tax rate categories? Which category is mandatory for generating returns?
The different types of tax rate categories are 16%, zero-rated and exempt. The tax rate category 16% is mandatory for generating returns.
9. Is it necessary to specify Description of VAT during recording of a transaction?
No. You can capture it in commodity details while configuring the masters. The same will be prefilled in the voucher. (If multiple commodities are selected in a voucher, details of commodity with highest quantity is filled). The auto filled description can be altered by enabling the option Allow modification of Brief Description of VAT in Voucher Configuration screen.
10. What is Return Transaction Book?
The Return Transaction Book displays the list of saved returns. Each time the form is modified and saved, the details are displayed as a separate row in this book.
11. What is VAT Reconciliation Book?
All the tax payment vouchers recorded for paying VAT dues and other liabilities are displayed in Tax Payment Reconciliation report. For each payment, the bank and challan details have to be provided from this report.
12. What are the VAT Stat adjustments flags available for Kenya?
Following are the stat adjustment flags provided in Tally.ERP 9.
|
Flag in 4.93 or older version |
Flag in 5.2 or later versions |
||
|
Nature of adjustment |
Additional Details |
Journal Entry |
Adjustment Towards Credit Adjustment voucher\Inventory Approval order |
Increasing Input Tax |
Opening Stock |
Dr Input VAT Cr Assets |
Adjustment of VAT withheld |
Increasing Input Tax |
Vat Withheld |
Dr Output VAT Cr Party |
Non -Deductible input tax |
Reversal of Input Tax |
Only Exempt |
Dr Expenses Cr Input VAT |
Non -Deductible input tax |
Reversal of Input Tax |
Taxable and Exempt |
Dr Expenses Cr Input VAT |
Adjustment Towards Refund Claim |
Refund of Input tax |
Refund Claim |
Dr Refund Claimed/Current assets Dr Input VAT |
'VAT - FAQ (Kenya)' has been shared with
