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Licensing – Best Practices

It is an accounting and business management software developed and owned by Tally Solutions Private Limited and is designed to assist businesses in managing their accounting, compliance, inventory, and financial operations.

Users can purchase the software off-the-shelf, and it is deployed locally on the user’s premises, server, or other designated environments. Alternatively, Users can opt for the license of TallyPrime on Cloud and access from anywhere through web.

  • Simplified Interface & Insightful Business Reports
  • Invoicing & Accounting, GST / Taxation
  • Statutory compliance and Edit Log
  • Inventory Management & Cash Flow Management
  • Payroll Management
  • Access business data Online
  • Secured Data
  • Software subscription for a collection of services
  • Updates you with latest developments in technology, regulatory changes and compliances.
  • Free product upgrades and WhatsApp connectivity.
  • Connected Services such as file and manage GST returns, Connected Banking, Auto-Backup, etc.
  • Subscription plans available at https://tallysolutions.com/buy-tally/.

Choosing License Type 

A Silver license is designed for a single user on a single machine. It is best suited for individuals, proprietors, or small setups where only one person requires access to TallyPrime at a time.

A Gold license is designed for multiple users in the same local network (LAN). It is best suited for businesses requiring multiple users to work on Tally simultaneously from the same location. 

Installation and Setup

It is recommended to install TallyPrime on a reliable machine (local machine or virtual server such as cloud) and in a standard directory (such as the default installation path). This ensures stability, easier troubleshooting, and smoother upgrades. For Gold licenses, the server machine should ideally be a dedicated machine that is always available on the same subnet within a LAN.

The recommended machine configurations can be found in the following link: Recommended Machine Configurations for TallyPrime

License Transfer and Surrender

You should first surrender the license from the existing machine through TallyPrime. Once surrendered, you can reactivate the same license on the new machine or hardware. In case you need to reactivate the license directly on another machine, the license can be automatically surrendered from the previous machine, provided it’s connected to the internet.

A silver license can only be active on one machine at a time. To use and access the same license from another machine within the LAN, you need to connect to the same gateway server where the license is currently active. However, the license will be active on only one instance at a given time.

Yes, a gold license can be shifted to a new server machine. You need to surrender it on the old server machine and then reactivate it on the new machine. All client machinewithin the LAN should be configured to point to the new server’s Gateway.  

However, it’s advisable to keep the gold license configured on a single machine, as relocating it may impact the connected clients and lead the license to switch to educational mode.

Usage and Access Limits 

Only one machine at a time can actively use a silver license. If the license is reactivated on another machine, it will no longer work on the previous one.

Install and set up the Gateway Server with the Gold license on a central server machine within the LAN. Configure all client machines to connect to this server machine to access the license.

Yes, you can host multiple licenses on the same machine by configuring different Gateways and ports.

Remote Usage

A TVU is a virtual user that allows accessing TallyPrime anytime, anywhere using virtualization technologies such as RDP, Citrix, Windows Thin Client, Cloud services, or any similar technologies.

  1. Silver License: 1 TVU is included.
  2. Gold License: 10 TVUs are included by default, with an option to purchase more.
  3. TallyPrime Sever License: 20 TVU are included by default, with an option to purchase more TVU

TVUs are meant for remote working by the same business entity users, not for sharing the license with other business branches / entities.

Yes. Gold supports multiple TVUs, so users can connect remotely to the licensed server. However, all users must belong to the same business entity, and usage must comply with the licensing rules.

No. TVUs and remote access are only for the licensed business entity’s own use. Using them to provide services across multiple businesses / business entity / business branches or clients is not permitted.

Yes, you can host your own license on a cloud platform like AWS, Azure, or a private cloud for your own business use. However, the license must match the geography of usage, and you can use cloud hosting to only share one license across different branches of the same business entity, and not different business entities.

TPCA (TallyPrime Cloud Access) (earlier known as TPonAWS – TallyPrime on AWS) is Tally’s official cloud-based solution to run TallyPrime using Web Services from Cloud Service providers. It is designed for businesses that prefer a cloud setup for ease of access, security, and availability, while staying compliant with Tally’s licensing model. It is best suited for a business entity with remote teams or multiple offices wanting centralized access through the cloud.

Under these there are currently 2 Service variants,

  1. TPCA India Service – For India License Owners and Users. Hosted in India on Oracle Cloud Infrastructure and Amazon Web Services.
  2. TPCA UAE Service – For UAE License Owners and Users under the International License. Hosted in UAE on Amazon Web Services. For other geographies, you may opt provided your applicable law permits.

No. A license is tied to one business entity only. Hosting one license in the cloud and giving access to multiple branches is allowed but sharing it with other business entities or clients is a misuse and not permitted. Each business entity must purchase its own valid license.

Geography and Cloud Access

  1. By default, licenses are meant to be used within the same LAN.
  2. To use TallyPrime outside the LAN, you must use TVU (Tally Virtual User) or Tally.NET Remote Access, depending on your license type.
  3. Using the same license across multiple physical locations without TVU/remote access is not allowed and falls outside the permitted scope of License usage.

By default, TallyPrime licenses are designed to work within the LAN of the licensed business entity location. Accessing the license outside the LAN is only permitted through TVU (Tally Virtual User) or Tally.NET Remote Access, and only for the same licensed business branch / business entity. Using the license in a different geography without the correct license edition for that geography is not permitted.

Licenses are geography specific. An Indian edition is not allowed for activation/reactivation from a different Geography. For permanent usage outside India, customers should either upgrade their India license edition to an international license edition or purchase the appropriate regional edition rather than using the India Edition. For temporary usage (such as during travel), prior permission must be obtained to avoid license-related restrictions

  1. A TallyPrime license must be hosted and accessed within the geographical location for which it was originally purchased for majority of the usage (75%). For example, an India edition license hosted on a server in India should not be frequently accessed from another country.
  2. If your business requires cross-geography access, you must either:
    1. Use TVU (Tally Virtual User) or Remote Access to securely connect back to the licensed server in the home geography, OR
    2. Purchase appropriate license editions of TallyPrime, for use in the designated Geographies.

License Maintenance and Compliance

It is recommended to connect to the internet at least once every few days. TallyPrime licenses can continue offline for up to 30 days, after which they must be reconnected to the internet for validation.

  1. Use the license only as per the license type (Silver for one machine, Gold within one LAN).
  2. Avoid frequent unnecessary reactivations. To access the license from a different machine in the LAN, point the client to the active Gateway (which holds the license), instead of reactivating it again in the new machine.
  3. Keep your machine configuration correct.
  4. Ensure you have an active TSS to use the connected services.
  5. Stay connected to the internet and keep upgrading to the latest releases / versions to enjoy the benefit of the latest features.

In TallyPrime, go to F1(Help) > Settings > Licensing > Manage License. This will show the latest updated license status, serial number, and validity details.

Ownership and Compliance

No. Licenses are issued to a specific customer / business entity / business branch and are non-transferable.

No. A license is tied to a single business entity and cannot be shared across multiple / independent business branches / entities.

No, you are not allowed to resell or distribute or sub-license or transfer your TallyPrime license.

If you wish to stop using your license, you can surrender it to your point of purchase/dedicated partner.

Yes, you may install the software on multiple machines, but the license rules apply:

  1. Silver license > only one machine can use it at a time.
  2. Gold license > multiple machines within the same LAN can use it concurrently.
  3. The license should be activated in a single LAN only, bypassing this may be considered a license misuse.

No. Each TallyPrime license is tied to a single legal business entity. Even if you own multiple businesses, each business branch / business entity must have its own valid license. Sharing one license across multiple business branch / business entities is not permitted and will be treated as misuse. 

  1. Use the license only within its allowed scope (single user/multi-user).
  2. Do not use one license across multiple geographies or unrelated / multiple entities.
  3. Keep your license updated and valid.
  4. Ensure the license is activated in a single LAN only.
  1. Silver: Only one user on one machine at a time.
  2. Gold: Unlimited concurrent users, but only within the same LAN.

TallyPrime licenses are sold through authorized Tally partners or online via our official website. For every valid purchase, you will receive a proof of purchase (invoice copy).

If you have any questions or concerns, please reach out to your partner or contact TallyCare for assistance. You can verify your partner from the list of authorized partners here.

Common Misuse FAQ

A Silver license is intended for use by a single user. Accordingly, you may carry the machine on which the Silver license is activated for demo purposes. However, if a customer wishes to experience the product on their own machine, they must obtain a trial license and reactivate it on their system to facilitate this.

No. A Gold license is meant to be used within one LAN at a single business location. Using it across multiple branches or geographies, even if they belong to the same company, requires separate licenses.

No. Hosting licenses in the cloud for external access (beyond the permitted TVUs) or reselling access to others is considered misuse and is not allowed.

Yes. Anyone with access to your Tally.NET credentials (both ID and password) can potentially reactivate your license from a different location. To prevent unauthorized access or misuse, we strongly recommend that you do not share your Tally.NET credentials with anyone. Sharing these details can lead to unauthorized license reactivation or other unintended actions. To keep your license operations in TallyPrime secure, please ensure that your password remains confidential. If you have already shared your credentials with someone, reset your password immediately to avoid unauthorized access or reactivation.

You can continue using your TallyPrime license even without a valid TSS (Tally Software Services) subscription.
However, to receive the latest release updates, access connected services, use remote access, and avail other online features, a valid TSS is required. We strongly recommend renewing TSS regularly to ensure uninterrupted access to all services and product enhancements.

TallyPrime Licensing Terms

  • Limited, non-exclusive, non-transferable, non-sublicensable, revocable license
  • Use TallyPrime for personal or internal business purposes only
  • TallyPrime should not be used for the benefit of any other person (individual or entity)
  • TallyPrime or its rights should not be rented, leased or transferred.
  1. Regular
    1. Perpetual and Lifetime license for any License editions.
    2. Free product update and TSS for 1 year
  2. Rental
    1. Limited timeframe, say 1, 3 or 12 months
    2. Extendable
    3. TSS renewal with renewal of rental validity
    4. Can be updated to regular license option.
  3. No license – Educational mode
    1. No TSS
    2. Can be used only for creating vouchers for the 1st, 2nd and 31st date of the month
    3. All features of TallyPrime except for the Connected services are available.

 

A detailed overview of the TallyPrime license is available at https://help.tallysolutions.com/licensing-tallyprime/ and the purchase options for the TallyPrime licensing editions and options is available here – https://tallysolutions.com/buy-tally/.

  • data is always encrypted
  • data is within your exclusive control
  • Remember your user credentials and keep it safe.
  • We follow all applicable laws including confidentiality and data protection laws
  • You should not modify or derive its source code
  • You should not decompile, disassemble or reverse engineer
  • You should not use for unlawful or illegal purposes
  • Your use must be within the scope of the License opted
  • Security threats or breaches
  • Suspicious access attempts
  • Misuse of License
  • In case of any issue, we will undertake to resolve to the best of our ability.
  • For any direct damages, our maximum liability is limited to the cost of the License purchased.
  • We are not liable for indirect damages, partners actions or things beyond our reasonable control.
  • Information available on TallyPrime is not professional advice. User discretion is to be exercised.
  • Governed by Indian law
  • Disputes are first resolved amicably
  • If needed, arbitration is held in Bengaluru, in English
  • Courts at Bengaluru shall exclusive jurisdiction

Terms may be updated – check Tally’s website or your registered email for updates.

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