Under Clause 18, all the Payments made to Related Parties (Specified Persons) as mentioned in the section 40A(2)(b), needs to be reported in the relevant Annexure. This section empowers the accessing officer to disallow any expenditure in respect to which the payment is made to the Specified Persons.
To view the report for Payments to Specified Persons u/s 40A(2)(b) - Clause 18,
Go to Gateway of Tally > Audit & Compliance > 44AB Audit > Payments to Specified Persons
This report is empty by default. The Auditor needs to identify the Related Party Ledgers to display the required information in this report as shown:
The Payments to Specified Persons screen displays all the transactions in which the Ledgers marked as Related Party are Debited. It also displays the total number of Unaudited Vouchers for each related Party with the total amount. The description for each field is explained below:
Particulars: Displays the name of the Ledgers which are marked as Related Party by the Auditor
Total Amount: Displays the Total Amount against each Related Party Ledger
Unaudited Vouchers: Displays the total Unaudited Vouchers belonging to each ledger
To filter the Payments to Specified Persons based on the Groups,
Click on F4: Groups or press F4
Select the required Group from the List of Groups
Press Enter to view the Payments to Specified Persons report for the selected Group
F7: Show All Vch
By default the Audit Status for the Unaudited Vouchers is only displayed in the Payments to Specified Persons report. To view the Status for both Audited and Unaudited Vouchers,
Click on F7: Show All Vch or press F7
The Payments to Specified Persons screen appears with detailed Audit Status as shown:
Audited: Displays the number of Vouchers that are Audited for each Ledger
Unaudited: Displays the number of Vouchers that are Unaudited for each Ledger
Total: Displays the total number of Vouchers for each ledger
F8: Show Audit Amt
By default the Payments to Specified Persons report displays the Total Amount for each Ledger which is marked as Related party. The Auditor can also view the breakup of the Unaudited Amount, Amounts Not to be Reported and to be Reported.
Click on F8: Show Audit Amt or press F8
Unaudited: The sum total of the Voucher amounts which are pending for Audit.
To be reported: The sum total of the Audited Voucher Amounts which are marked as To be reported and will be reported in the Annexure.
Not to be reported: The Sum total of the Audited Voucher Amounts which are marked as Not to be reported and will not be reported in the Annexure.
Tally.ERP 9 provides flexibility to the user to consider any Ledger belonging to any Group as Related Party. As discussed earlier the Payments to Specified persons screen will be empty by default. In order to mark the Ledgers as Related Party as per Clause 18, follow the steps given below:
Click on Ctrl+F9: Masters or press Alt+F9
Select All Items from the List of Groups
Press Enter
To mark a Ledger as Related Party, follow the steps given below:
Select the required Ledger by pressing Spacebar on the same
Note: To select more than one Ledger, press Spacebar on each Ledger separately.
Press Ctrl+A keys to mark the Ledger(s) as Related Party
Ctrl+F10: Rest Default
Click on Ctrl+F10: Rest Default or press Ctrl+F10 key to restore all the ledgers to default mode i.e Is Related Party to No and Relation Type to blank.
Ctrl+W : Audit Working Paper
Click on Ctrl+W: Audit Working Paper or press Ctrl+F10 key to view Audit Working Paper for Related Party Configuration. For more details, refer Audit Working Paper
Escape to go back to Payments to Specified Persons screen
The Payments to Specified Persons displays the list of the Ledgers marked as Related party along with the Amount and Unaudited Vouchers as explained earlier.
To change the default display screen for the Payments to Specified Persons report,
Click on F12: Configure button or press F12 key
Show Group Details: Set this option to Yes to view the parent group and immediate Group for the respective Ledger.
Show Relation Type: Set this option to Yes to view the Relation type for the respective ledger.
Show Voucher Audit Details: Set this option to Yes to view the Audit status details of Audited and Unaudited vouchers.
Sorting Method: Set the required sorting method to sort the vouchers on the basis of Alphabetical (Increasing or Decreasing) or Amount-wise (Increasing or Decreasing)
The Payments to Specified Persons screen displays all the Ledgers as per the Groups selected by the Auditor. The Auditor can drill down to the Ledger Vouchers by selecting the respective Ledger and pressing Enter.