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.
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?
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