Latest Official GST Updates from the Indian Government

 

The Indian government has changed the Goods and Services Tax (GST) regime. Goods and Services Tax (GST) is a comprehensive indirect tax system in India that was implemented in July 2017 to replace other taxes such as VAT, Excise Duty, and Service Tax. GST is charged on the supply of goods and services, with the tax rate varying according to the type of products and services supplied. GST is a destination-based tax, meaning the tax income is paid to the state where the products or services are consumed. The GST council, which consists of representatives from the central and state governments, makes decisions about the tax rate and any modifications to the GST law.

1. Tax Rate Adjustments for Used Automobiles: The GST Council has raised the GST rate on selling all old and used vehicles, including electric vehicles (EVs), from 12% to 18%.

2. Consideration of GST Reduction on Online Food Delivery Fees: The GST Council is evaluating a proposal to reduce the GST on food delivery charges from e-commerce platforms, such as Zomato and Swiggy, from 18% to 5%. This adjustment is intended to make food delivery services more affordable for consumers.

3. Exclusion of Aviation Fuel from GST Regime: The GST Council has rejected the proposal to include aviation turbine fuel (ATF) under the GST regime. Currently, state governments determine the taxation of ATF, leading to varying tax rates across states.

 4 .GST Collections Increase: In November 2024, India's GST collections rose by 8.5% year-on-year, totaling ₹1.82 trillion. This increase reflects economic growth and improved compliance.

5. Tax Classification on Popcorn: The GST Council has introduced distinct GST rates for popcorn: 5% for non-branded salted popcorn, 12% for pre-packaged and branded popcorn, and 18% for caramel popcorn due to added sugar. This decision has sparked public and political debate over the tax system's complexity.

GST Updates Released in December 2024

The 55th GST Council met on December 21, 2024, in Jaisalmer, Rajasthan. The Union Finance and Corporate Affairs Minister presided over the meeting, which was attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Haryana, Jammu and Kashmir, Meghalaya, and Odisha, Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana, as well as Finance Ministers of States and UTs (with legislature) and senior officers of the Ministry of Finance and States/UTs.

The government stressed that taxpayers could only generate e-way bills for documents dated no earlier than 180 days. An e-way bill's validity can also be extended for up to 360 days after it was generated.  MFA/2FA will be necessary on NIC portals to create e-invoices and e-way bills for taxpayers with annual aggregate turnover (AATO) of more than ₹20 Crores, spreading to all users staggered from April 1, 2025. Logging in requires a username, password, and an OTP (given to a registered mobile phone or app).
All changes outlined above will take effect on January 1, 2025.

GSTN has issued an advisory on Biometric-Based Aadhaar Authentication and Document Verification for GST Registration in several states. Rule 8 now covers biometric-based Aadhaar authentication based on data analysis, risk parameters, and document verification. After applying Form GST REG-01, the applicant will receive an email requesting either OTP-based authentication or a GSK appointment for biometric verification, along with the requisite documents such as an Aadhaar and PAN card. This seeks to streamline and improve the registration procedure.

The 55th GST Council meeting will take place on December 21, 2024, in Jaisalmer, Rajasthan. The council is anticipated to make recommendations based on the Status Report given by the Group of Ministers. The gathering is a must-see, with topics ranging from merging tax slabs to streamline the current GST framework to proposing a new 35% tax rate.
Furthermore, GST rates for essential products such as packaged drinking water and exercise notebooks are expected to fall, but luxury goods such as high-end shoes and watches would rise.
Additionally, GST rates for insurance premiums, textiles, educational products, and cosmetics may alter.

An advisory was issued regarding entering receipt numbers for leased wagons in the E-Way Bill System.

 Effective January 1, 2025, E-Way Bill and E-Invoice systems will essential Multi-Factor Authentication (MFA).

The deadline for filing GSTR-3B for October 2024 has been extended for taxpayers in Murshidabad, West Bengal, per Central Tax Notification No. 30/2024.

An advisory was provided to correct inconsistencies between Table 8A and Table 8C numbers in the GSTR-9 annual return for FY 2023-24.

Advisory on the essential sequential filing of GSTR-7 under Notification No. 17/2024.

Advice on entering RR No./eT-RRs and integrating E-Way Bills into the FOIS system.

The GST collection data for November 2024 showed an income of ₹1.82 lakh crore.
Advisory issued on GST E-Invoice terminology and guidance.

CONTACT US 

AIAT INSTITUTE

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

Question & Answer

1. What was the purpose of the Goods and Services Tax (GST) implemented in India in July 2017?
A) To introduce a new direct tax system
B) To replace VAT, Excise Duty, and Service Tax
C) To increase income tax rates
D) To regulate international trade

Answer: B) To replace VAT, Excise Duty, and Service Tax

2. What is the GST rate on the sale of old and used vehicles, including electric vehicles (EVs), after the recent update?
A) 5%
B) 12%
C) 18%
D) 28%

Answer: C) 18%

3. Which proposal regarding aviation turbine fuel (ATF) was recently rejected by the GST Council?
A) Reduction of GST on ATF
B) Inclusion of ATF under the GST regime
C) Increasing tax rates on ATF
D) Exemption of ATF from GST

Answer: B) Inclusion of ATF under the GST regime

4. What is the proposed reduction in GST for food delivery charges from platforms like Zomato and Swiggy?
A) 18% to 12%
B) 12% to 5%
C) 18% to 5%
D) 28% to 18%

Answer: C) 18% to 5%

5. What is the GST rate on caramel popcorn due to the addition of sugar?
A) 5%
B) 12%
C) 18%
D) 28%

Answer: C) 18%

6. What change has been made regarding the validity of e-way bills?
A) Valid for 90 days
B) Valid for 180 days, extendable to 360 days
C) Valid for 120 days, non-extendable
D) Valid for 60 days

Answer: B) Valid for 180 days, extendable to 360 days

7. What authentication method will become mandatory for e-invoices and e-way bills for businesses with AATO over ₹20 Crores starting April 2025?
A) Single-factor authentication
B) OTP-based authentication
C) Multi-Factor Authentication (MFA)
D) Biometric authentication only

Answer: C) Multi-Factor Authentication (MFA)

8. Which states were advised to use biometric Aadhaar identification for GST registration document verification?
A) Maharashtra and Gujarat
B) Haryana, Manipur, Meghalaya, and Tripura
C) Karnataka and Kerala
D) Punjab and Rajasthan

Answer: B) Haryana, Manipur, Meghalaya, and Tripura

9. What was the GST collection in November 2024?
A) ₹1.5 trillion
B) ₹1.7 trillion
C) ₹1.82 trillion
D) ₹2 trillion

Answer: C) ₹1.82 trillion

10. What advisory was issued regarding the correction of inconsistencies in the GSTR-9 annual return for FY 2023-24?
A) To file returns early
B) To correct inconsistencies between Table 8A and Table 8C
C) To use biometric data for validation
D) To seek manual approval from tax authorities

Answer: B) To correct inconsistencies between Table 8A and Table 8C

11. Which notification enlarged the deadline for filing GSTR-3B for October 2024 for taxpayers in Murshidabad, West Bengal?
A) Notification No. 10/2024
B) Notification No. 30/2024
C) Notification No. 50/2024
D) Notification No. 17/2024

Answer: B) Notification No. 30/2024

12. What new feature has GSTN introduced for Aadhaar authentication during GST registration?
A) OTP-based authentication only
B) Biometric-based Aadhaar authentication and document verification
C) Manual document verification at GST offices
D) No new features were introduced

Answer: B) Biometric-based Aadhaar authentication and document verification

What is Blockchain Technology? How Does Blockchain Work?

 

Blockchain records information that makes the system impossible or difficult to update, hack, or manipulate. A blockchain is a distributed ledger that copies and distributes transactions across the network of computers participating in the blockchain. The technology’s unique structure and properties make it useful for applications that require trustworthy and tamper-resistant data, such as cryptocurrency, supply chain tracking, digital contracts, and secure voting systems. Every transaction in this ledger is validated using the owner's digital signature, which authenticates the transaction and prevents tampering. As a result, the information in the digital ledger is highly secure.

Why is Blockchain Popular?

Suppose you are sending money to family or friends from your bank account. You would connect into online banking and transfer the funds to the other person using their account number. When the transaction is completed, your bank will update the transaction records. It seems simple enough, doesn't it? There is a possible concern that most of us ignore.

Blockchain is an emerging technology that has several benefits in an increasingly digital world:

Decentralized System

Traditionally, transactions require clearance from authorities like as the government or a bank; but, with Blockchain, transactions are completed through user consensus, resulting in smoother, safer, and faster transactions.

Automation Capability

It is programmable and may generate automated activities, events, and payments when certain trigger conditions are met.

Types of Blockchain

 Public Blockchains: Open to anyone (e.g., Bitcoin, Ethereum).

Public blockchains are permission less, allowing anyone to join them. Everyone on the blockchain has equal access to read, edit, and validate the blockchain.

 Private Blockchains: Restricted to specific participants, often used by businesses for internal operations. The authority determines who can become a member and what rights they have within the network. Ripple, a business-focused digital currency exchange network, is one example of a private blockchain.

 Consortium Blockchains: Controlled by a group of organizations, useful for industry-wide solutions.

Key Features of Blockchain Technology

Decentralization: Instead of a central authority controlling the ledger, blockchain distributes the ledger across a network of nodes (computers), making it less vulnerable to manipulation.

Immutability: Once data is recorded, it’s nearly impossible to alter, as any modification would require changing all previous blocks in the chain, which is highly impractical.

Applications of Blockchain

Cryptocurrencies: Blockchain powers digital currencies like Bitcoin, Ethereum, and others by creating a secure record of ownership and transactions.

Smart Contracts: These are self-executing contracts with terms encoded directly into the code, allowing for agreement automation.

Supply Chain Management: Blockchain provides transparency by tracking products across the supply chain.

Healthcare Records: It allows for secure and privacy-preserving sharing of medical data across institutions.

Voting Systems: Blockchain can enhance the security and transparency of voting by preventing tampering and ensuring accuracy.

How Blockchain Works

Blockchain operates through a combination of cryptography, consensus mechanisms, and data structures. Here’s a simplified breakdown:

Transaction Initiation: A transaction is initiated by a participant in the network, such as sending cryptocurrency or updating a contract. The details of the transaction are represented as data and packaged into a “block.”

Verification and Consensus:

The transaction block is then distributed throughout the network.

Nodes on the network validate the transaction. Different blockchain networks use various consensus mechanisms to ensure only valid transactions are recorded. The two most common mechanisms are:

Proof of Work (PoW): Nodes (miners) compete by solving a complex mathematical puzzle that validates the block. Solving the riddle first allows the miner to add the block to the chain and receive a reward.

Proof of Stake (PoS): Validators are chosen to add blocks based on the amount of cryptocurrency they own and "stake" as collateral, lowering energy consumption.

Block Creation and Addition:

After validation, the new block is connected to the preceding block using a unique cryptographic hash (digital fingerprint).

The term "blockchain" refers to the unbroken record of past transactions created through a chain of blocks.

Updating the Ledger:The new block is then added to the existing blockchain, which updates across all nodes in the network.Each node independently verifies the update, ensuring everyone has the same version of the blockchain.

Immutable Record: The block becomes part of a permanent record that is nearly impossible to change without redoing all subsequent work on the blockchain.

CONTACT US 

AIAT INSTITUTE

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

Question & Answer

1. What is a key feature of blockchain that helps make it secure?

a) Centralized control

b) Frequent updates

c) Immutability

d) Central authority

Answer: c) Immutability

2. How does blockchain achieve decentralization?

a) By using a central server to store data

b) By distributing the ledger across a network of nodes

c) By allowing only one node to validate each transaction

d) By requiring a bank to authorize all transactions

Answer: b) By distributing the ledger across a network of nodes

3. Which of the following is an example of a public blockchain?

a) Ripple

b) Bitcoin

c) Consortium blockchain

d) Private blockchain

Answer: b) Bitcoin

4. What consensus mechanism involves solving complex mathematical puzzles to validate transactions?

a) Proof of Stake (PoS)

b) Proof of Work (PoW)

c) Smart Contracts

d) Decentralization

Answer: b) Proof of Work (PoW)

5. In blockchain, what is a 'block' used to represent?

a) A physical storage device for data

b) A package of data that represents a transaction

c) A network of users

d) A backup of a blockchain

Answer: b) A package of data that represents a transaction

6. Which type of blockchain is controlled by a group of organizations?

a) Public blockchain

b) Private blockchain

c) Consortium blockchain

d) Decentralized blockchain

Answer: c) Consortium blockchain

7. What allows blockchain to automate certain actions, like payments, when specific conditions are met?

a) Public blockchain

b) Private blockchain

c) Consensus mechanisms

d) Smart contracts

Answer: d) Smart contracts

8. Which of the following is NOT an application of blockchain technology?

a) Cryptocurrencies

b) Voting systems

c) Personal savings accounts

d) Supply chain management

Answer: c) Personal savings accounts

9. In a Proof of Stake (PoS) system, how are validators chosen?

a) Based on the number of transactions they validate

b) Based on the amount of cryptocurrency they own and stake as collateral

c) By solving complex puzzles

d) By the consensus of other validators

Answer: b) Based on the amount of cryptocurrency they own and stake as collateral

10. What term refers to the unbroken record of past transactions in a blockchain?

a) Ledger

b) Block

c) Chain of custody

d) Blockchain

Answer: d) Blockchain

Understanding the Direct Tax Code 2025

India’s tax system is set to undergo a significant transformation with the introduction of the Direct Tax Code (DTC) 2025. Designed to replace the Income Tax Act of 1961, the DTC seeks to simplify and update the country's tax structure. After many delays, the government has announced that the Direct Tax Code will come into effect from April 2025, marking a new fiscal era for both businesses and individuals in the country.

Why the Need for the Direct Tax Code?

The current Income Tax Act was enacted in 1961, and while it has been amended multiple times, it has not kept pace with the rapidly evolving economic environment. The increasing complexity of tax laws, the need for more clarity on international taxation, and the demand for a simplified tax structure have all contributed to the call for a new Direct Tax Code.

The primary goals of the DTC 2025 are to:

Simplify tax laws and make them more comprehensible for individuals and businesses.

Expand the tax base by bringing more individuals and entities into the tax net.

Ensure better compliance with anti-evasion measures.

Improve the ease of doing business in India by making the tax regime more investor-friendly.

Major Changes in Direct Tax Code 2025

Simplified Tax Structure

•          The Direct Tax Code 2025 proposes a simpler and more rationalized tax structure by reducing the complexities in tax calculations. This includes a streamlined set of income tax slabs, aimed at making the tax system more understandable for individuals and businesses alike.

•          Personal Income Tax Slabs may undergo restructuring, potentially offering more favourable rates for middle-income groups while expanding the tax base.

Reduction in Corporate Tax Rates

•          A key focus of the DTC is to further reduce the corporate tax rates to make India more competitive globally. This change is intended to boost business growth, attract foreign investment, and encourage companies to set up operations in India.

•          The Code aims to rationalize the treatment of profits across sectors, especially for start-ups and MSMEs, by offering targeted tax benefits and exemptions.

Changes in Capital Gains Taxation:

Capital gains are treated as normal income under the DTC 2025, so you may pay greater taxes on them.

TDS and TCS on Most Income:

The new system will apply Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) to practically all types of income, hence increasing monthly tax payments.

Broader Tax Base and Fewer Exemptions

One of the most significant insights into the DTC 2025 is the focus on increasing the tax base by reducing the amount of exemptions and deductions available. While this may appear to increase tax liability, it is designed to simplify compliance and limit the opportunity for tax avoidance.

•          The Code aims to remove outdated exemptions and focus on a smaller set of targeted tax reliefs, making tax filing more straightforward.

Increased Focus on Wealth and Estate Taxes

•          The DTC 2025 is expected to consider the reintroduction of wealth tax or inheritance tax, aimed at addressing inequality and ensuring high-net-worth individuals (HNIs) contribute equitably to tax revenues.

•          The estate duty or inheritance tax, if introduced, could impact wealth transfers, particularly for HNIs, and encourage efficient estate planning and redistribution of wealth.

Focus on Environmental and Social Responsibility

•          The DTC includes provisions to promote environmentally sustainable practices, offering tax benefits to companies investing in green technology or contributing to corporate social responsibility (CSR) activities.

•          Certain tax deductions may be introduced for businesses and individuals contributing to the sustainability agenda, such as investing in renewable energy, reducing carbon footprints, or social impact programs.

Tax Audit Changes:

The DTC 2025 may allow CS and CMA experts to undertake tax audits previously reserved for Chartered Accountants.

Dividend Distribution and MAT Revisions:

Dividend Taxation: A reform of the Dividend Distribution Tax (DDT) a transition to taxing dividends at the shareholder level is expected to conform with global tax standards.

MAT (Minimum Alternate Tax): Potential changes to the MAT regime that would aid businesses in their early stages of growth or experiencing financial difficulties.

CONTACT US 

AIAT INSTITUTE

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

Question & Answer

1. When will the Direct Tax Code 2025 come into effect?

a) January 2025

b) April 2025

c) October 2025

d) April 2026

Answer: b) April 2025

2. Which law will the Direct Tax Code 2025 replace?

a) Income Tax Act of 1991

b) Wealth Tax Act of 1975

c) Income Tax Act of 1961

d) Tax Evasion Act of 1980

Answer: c) Income Tax Act of 1961

3. What is one of the primary goals of the Direct Tax Code 2025?

a) Increase exemptions for high-income individuals

b) Introduce a flat tax rate for all income groups

c) Simplify tax laws and make them more comprehensible

d) Eliminate all tax deductions

Answer: c) Simplify tax laws and make them more comprehensible

4. How does the Direct Tax Code 2025 aim to broaden the tax base?

a) By increasing the number of tax exemptions available

b) By reducing exemptions and deductions

c) By lowering corporate tax rates for all businesses

d) By offering more exemptions for foreign investors

Answer: b) By reducing exemptions and deductions

5. What is the impact of the Direct Tax Code 2025 on corporate tax rates?

a) Corporate tax rates will remain the same

b) Corporate tax rates will increase significantly

c) Corporate tax rates will be reduced to attract foreign investment

d) Corporate tax rates will only apply to multinational corporations

Answer: c) Corporate tax rates will be reduced to attract foreign investment

6. Under the Direct Tax Code 2025, how will capital gains be treated?

a) As normal income and taxed at higher rates

b) As a separate category with no tax liability

c) Subject to only TDS

d) Exempt from taxation for individuals

Answer: a) As normal income and taxed at higher rates

7. Which of the following taxes might be reintroduced under the Direct Tax Code 2025?

a) Goods and Services Tax

b) Sales Tax

c) Inheritance Tax or Wealth Tax

d) Service Tax

Answer: c) Inheritance Tax or Wealth Tax

8. What change is proposed for the taxation of dividends under the Direct Tax Code 2025?

a) Dividends will be taxed only at the corporate level

b) Dividends will be exempt from tax entirely

c) Dividend Distribution Tax will be reformed, and dividends will be taxed at the shareholder level

d) Dividends will not be taxed under the new code

Answer: c) Dividend Distribution Tax will be reformed, and dividends will be taxed at the shareholder level

9. How does the Direct Tax Code 2025 promote environmental sustainability?

a) By providing no incentives for companies

b) By offering tax benefits to companies investing in green technology

c) By introducing penalties for high carbon emissions

d) By making environmental taxes mandatory for all businesses

Answer: b) By offering tax benefits to companies investing in green technology

10. What change is proposed regarding tax audits under the Direct Tax Code 2025?

a) Tax audits will be abolished for all businesses

b) Only international companies will be required to perform tax audits

c) Company Secretaries (CS) and Cost and Management Accountants (CMA) may be allowed to undertake tax audits previously reserved for Chartered Accountants

d) Tax audits will be mandatory for all taxpayers, regardless of income

Answer: c) Company Secretaries (CS) and Cost and Management Accountants (CMA) may be allowed to undertake tax audits previously reserved for Chartered Accountants

 

How to set Payroll in Tally Prime?

Setting up Payroll in Tally Prime is essential for businesses to manage employee salaries, wages, bonuses, and deductions efficiently. Tally Prime offers comprehensive payroll management features that allow you to automate payroll processing, maintain employee records, and generate statutory reports. Here's a step-by-step guide to setting up payroll in Tally Prime. Tally Prime provides various tools that allow you to implement and process payroll. The Payroll Info. menu allows you to construct various payroll masters required to compute employee earnings and deductions.

Step 1: Enable Payroll Feature in Tally Prime

Before you start setting up payroll, you need to enable the payroll feature in Tally Prime.

Login to Gateway of Tally > F11: Features > F1: Accounting Features.

Under 'Maintain Payroll', select 'Yes'.

Press 'Enter' to save the changes.

Step 2: Create Payroll Masters

Once the payroll feature is enabled, you need to create payroll masters, which include Employee Groups, Employee Masters, Pay Heads, and Salary Details.

2.1. Create Employee Groups

Employee Groups help in categorizing employees based on departments, roles, or any other criteria.

Login to Gateway of Tally > Masters > Payroll Masters > Employee Groups > Create.

Enter the Group Name, for example, 'Sales', 'HR', etc.

Define the Under Group. If it’s the primary group, select 'Primary'.

Press 'Enter' to save.

2.2. Create Employee Masters

Employee Masters store individual employee details.

Go to Employees > Create under Masters > Payroll Masters > Employees > Gateway of Tally.

Enter the Employee Name, Employee Code, and select the Employee Group.

Provide additional details like Date of Birth, Gender, and Date of Joining.

Specify Statutory details if required (e.g., PF Account No., PAN, etc.).

Press 'Enter' to save the employee details.

2.3. Create Pay Heads

Pay Heads define the various components of an employee’s salary, such as Basic Salary, HRA, Provident Fund, etc.

Go to Masters > Payroll Masters > Pay Heads > Create in the Gateway of Tally.

Enter the Pay Head Name (e.g., Basic Salary, HRA, etc.).

Specify whether it’s an 'Earnings for Employees' or a 'Deductions from Employees'.

Define the Calculation Type (e.g., As Computed Value, On Attendance, etc.).

Specify the Calculation Period (Monthly, Weekly, etc.) and Rounding method if needed.

For statutory pay heads like PF, ESI, etc., provide the relevant statutory details.

Press 'Enter' to save the Pay Head.

Step 3: Define Salary Details

Now that you have created the Payroll Masters, you need to define salary details for each employee.

Login to Gateway of Tally > Masters > Payroll Masters > Salary Details > Create.

Select the Employee Name.

Define the Effective Date for the salary structure.

Add the Pay Heads (e.g., Basic Salary, HRA, etc.) and specify the amounts or percentage values.

If there are deductions, specify the deduction amounts.

Press 'Enter' to save the salary structure.

Step 4: Process Payroll

After setting up the payroll masters and salary details, you can process the payroll for employees.

Login to Gateway of Tally > Transactions > Payroll Vouchers > F2: Date.

Select the Voucher Date.

In the Payroll Voucher screen, select 'Payroll Auto Fill' from the right-hand side options.

Choose the Payroll Auto Fill option based on your requirement (e.g., Salary Auto Fill).

Select the Employee Category and other criteria like the month for which payroll is to be processed.

The system will automatically fill in the salary details based on the predefined salary structures.

Review the payroll details, and press 'Enter' to accept.

Save the Payroll Voucher.

Step 5: Generate Payroll Reports

Tally Prime allows you to generate various payroll-related reports, such as Pay Slips, Salary Statements, and Statutory Reports.

Go to Display > Payroll Reports in the Tally Gateway.

Select the report you want to view, such as Pay Slip, Attendance Sheet, or Salary Register.

Specify the period and other criteria.

The report will be generated based on the payroll data processed.

You can print or export the report as required.

Step 6: Statutory Compliance

Tally Prime also helps with handling statutory payroll compliance, such as Provident Fund (PF), Employee State Insurance (ESI), and Professional Tax (PT). Ensure that all statutory Pay Heads are correctly configured, and the relevant details are entered in the employee masters.

To generate statutory reports, go to Gateway of Tally > Display > Payroll Reports > Statutory Reports.

Select the appropriate report like PF Contribution, ESI Contribution, etc.

Ensure that all statutory deductions and contributions are accurate and up-to-date.

CONTACT US 

AIAT INSTITUTE

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur

Phone: 9604121000

Website: www.aiatindia.com

Question & Answer

1. Which option do you need to enable to activate the payroll feature in Tally Prime?
A. F2: Features
B. F11: Features > F1: Accounting Features
C. F12: Configure
D. F10: Audit Features

Answer: B. F11: Features > F1: Accounting Features

2. In which menu do you create Employee Groups in Tally Prime?

A. Masters > Payroll Masters > Employee Groups

B. Gateway of Tally > Transactions > Employee Groups

C. F11: Features > Employee Groups

D. Payroll Vouchers > Employee Groups

Answer: A. Masters > Payroll Masters > Employee Groups

3. What information is typically stored in Employee Masters in Tally Prime?

A. Employee Salary and Department

B. Employee Name, Code, and Group

C. Employee Code, Department, and Attendance

D. Employee Bank Details and Tax Information

Answer: B. Employee Name, Code, and Group

4. What is the purpose of Pay Heads in payroll setup in Tally Prime?

A. To categorize employees into groups

B. To manage payroll vouchers

C. To define components of salary like Basic Salary, HRA, etc.

D. To process payroll automatically

Answer: C. To define components of salary like Basic Salary, HRA, etc.

5. What type of calculation can be assigned to Pay Heads in Tally Prime?

A. Manual Entry

B. On Attendance or As Computed Value

C. Weekly or Monthly

D. Employee Category

Answer: B. On Attendance or As Computed Value

6. When defining salary details for an employee, what is the first step after selecting the employee name?

A. Enter the employee’s address

B. Add Pay Heads and amounts

C. Define the Effective Date for the salary structure

D. Specify the employee’s PF and ESI details

Answer: C. Define the Effective Date for the salary structure

7. Which option is used to process payroll in Tally Prime after salary structures have been defined?

A. Transactions > Accounting Vouchers

B. Gateway of Tally > Transactions > Payroll Vouchers

C. Masters > Payroll Vouchers

D. Display > Payroll Reports

Answer: B. Gateway of Tally > Transactions > Payroll Vouchers

8. What is the role of the ‘Payroll Auto Fill’ feature in Tally Prime?

A. It categorizes employees based on roles

B. It processes salary automatically for multiple employees

C. It generates payroll reports

D. It helps in managing employee attendance

Answer: B. It processes salary automatically for multiple employees

9. Which report is NOT part of the Payroll Reports in Tally Prime?

A. Pay Slip

B. Salary Register

C. PF Contribution

D. Profit and Loss Statement

Answer: D. Profit and Loss Statement

10. How can you generate statutory payroll reports like PF Contribution and ESI Contribution in Tally Prime?

A. Display > Payroll Reports > Statutory Reports

B. Gateway of Tally > Transactions > Statutory Vouchers

C. F11: Features > Accounting Features > Statutory Reports

D. Masters > Statutory Masters > Payroll Statutory Reports

Answer: A. Display > Payroll Reports > Statutory Reports

 

Latest New Features of Tally Prime 5.0

Tally Prime 5.0 introduces several new features designed to enhance user experience and streamline business processes.

Tally Prime Default TDL 

A new feature of Tally Prime Developer Release 5.0 is the addition of Connected GST code. Progress Bar has been enhanced and Stripe View has been included as a new feature to enable the related GST feature. With Tally Prime Release 5.0, partners and developers can create new, customized options with the assistance of the updated code of Tally Prime's default TDL.

Dictionary Manager 

Dictionary Manager 5.0 introduces strong new features for exporting and importing data, as well as better filtering and sorting capabilities.

TDL Enhancements in Tally Prime Release 5.0 

Release 5.0 provides more TDL capabilities, allowing developers to personalize its features. Furthermore, the Progress Bar and Stripe View features greatly improve the user experience.

Progress Bar 

Release 5.0 adds several types of new TDL capabilities, allowing developers to significantly change its features. The new Progress Bar UI improves user understanding of each step involved in completing GST returns. This functionality can also be used in customizations to improve clarity for multi-step processes.

Stripe View

With the Stripe View capability in Tally Prime, you can now view data in reports and vouchers with stripes. Reports and vouchers with stripes make the data easier to read overall by allowing you to see each row's data clearly.

Sort Pending Bills to Manage Payments Effectively

Tally Prime Release 5.0 provides an effective payment management solution that allows you to sort through your pending payments. Make payments on time and in the order of due dates, with the oldest bill paid first, to reduce the possibility of late fees and penalties. You can also sort the bills by other factors such as Bill Date, Balances, and so on, depending on your business procedures.

Instant Notifications with the new Bell icon

Tally Prime 5.0 introduces the Notifications report and the Bell icon, which improve the notification structure. The report is intended to remind you of key duties such as GST uploads/downloads and return filing (for Indian users), TSS renewals, license management, and Tally Prime upgrades. You can now do:

• Get timely notifications for multiple activities in a single report to remain on top of business responsibilities.

• Use the Notifications report to perform appropriate actions without switching between screens or modules.

• Set up the Bell icon indicator to get notifications how you want them to.

Master Your Accounting & Compliance Needs with Connected GST

Balancing your books with GST regulations has never been easier, and it all happens within Tally Prime's existing flow.

Features

Simpler Uploads & Downloads: Upload GSTR-1, GSTR-3B, and CMP-08 from Tally Prime to the GST portal. GSTR-1, GSTR-3B, GSTR-2A, and GSTR-2B can all be downloaded in only a few clicks.

Effortless Filing: You can file your GSTR-1 immediately from Tally Prime without entering the portal. Select a filing technique, like DSC or EVC.

Real-Time Party Information: Use the portal's real-time data to quickly generate and validate party ledgers. No more manually entering party information. Simply enter the GSTIN/UIN of the party.

Key Insights on ITC: Bills Payable allows you to accurately track your ITC at risk for one or hundreds of suppliers. Similarly, in Bills Receivable, you may follow the status of invoice uploads against a party's pending bills. Gain more insight with specific reports like Ledger Vouchers - GST and Ledger Outstanding - GST, as well as other predefined saved views.

Benefits

 Easily resolve mismatches and rejections for smooth filing, uploading, and downloading.

 Automate operations like upload, download, and party validation to save time and connect securely to the GST site.

 Real-time visibility into financial activities and compliance is made possible by Tally Prime.

 Minimize compliance efforts, freeing up time for business growth.

CONTACT US 

AIAT INSTITUTE

Address: AIAT Institute, 15 Bhande Plot Umred Road Nagpur.

Phone: 9604121000

Website: www.aiatindia.com

Question & Answer

Which new feature in Tally Prime 5.0 enhances the user interface by adding a visual indicator of progress in tasks like completing GST returns

Answer: B) Progress Bar

A) Stripe View

B) Progress Bar

C) Dictionary Manager

D) Bell Icon

What does the new Stripe View feature in Tally Prime 5.0 help with?

Answer: B) Viewing data in reports and vouchers with stripes for easier readability

A) Sorting data alphabetically

B) Viewing data in reports and vouchers with stripes for easier readability

C) Importing and exporting data

D) Managing notifications

What is the purpose of the new Bell Icon introduced in Tally Prime 5.0?

Answer: B) To provide instant notifications

A) To enable GST code

B) To provide instant notifications

C) To manage dictionary exports

D) To view reports with stripes

How does the new Dictionary Manager 5.0 enhance data handling in Tally Prime?

Answer: A) By providing better filtering and sorting capabilities

A) By providing better filtering and sorting capabilities

B) By adding a Progress Bar UI

C) By managing payment sorting

D) By introducing the Bell Icon

Which feature allows developers to significantly personalize Tally Prime's functions and features?

Answer: C) Enhanced TDL capabilities

A) Progress Bar

B) Stripe View

C) Enhanced TDL capabilities

D) Bell Icon

What benefit does the 'Sort Pending Bills' feature offer in Tally Prime 5.0?

Answer: B) Manages payments effectively by sorting bills

A) Automates GST uploads

B) Manages payments effectively by sorting bills

C) Provides instant notifications

D) Enhances data viewing with stripes

What does the Connected GST feature in Tally Prime 5.0 facilitate?

Answer: A) Real-time party information and automated GST uploads/downloads

A) Real-time party information and automated GST uploads/downloads

B) Filtering and sorting data

C) Instant notifications

D) Viewing reports with stripes

Which of the following can be directly filed from Tally Prime without accessing the GST portal?

Answer: B) GSTR-1

A) GSTR-2A

B) GSTR-1

C) CMP-08

D) GSTR-2B

What key insights does the Bills Payable feature provide regarding ITC?

Answer: B) Accurate tracking of ITC at risk for suppliers

A) Real-time notifications on party information

B) Accurate tracking of ITC at risk for suppliers

C) Enhanced data filtering

D) Sorting pending bills by due date

Which of the following is a benefit of using Tally Prime 5.0 for GST compliance?

Answer: B) Minimized compliance efforts and increased time for business growth

A) Manual entry of party information

B) Minimized compliance efforts and increased time for business growth

C) Viewing data without stripes

D) Delayed notification of business responsibilities