Frequently Asked Qustions on Service Tax
FAQ
Q. What is Service Tax?
A. It is a tax levied on the transaction of certain specified services by the Central Government under the Finance Act, 1994. It is an indirect tax, which means that normally the service provider pays the tax and recovers the amount from the recipient of taxable service

Q. Can recipient of service be also asked to pay service tax
A. In certain cases Government may shift the liability of payment of service tax to the receiver of service as a measure of administrative convenience. It is often referred to as ‘reverse charge’ in common language. [Refer Question 1.8]

Q. Under which authority service tax is levied?
A. Vide Entry 97 of Schedule VII of the Constitution of India, the Central Government levies service tax through Chapter V of the Finance Act, 1994. The taxable services are defined in section 65 of the Finance Act, 1994. Section 66 is the charging section of the said Act.

Q. What are the taxable services?
A. The list of the services is available at home page of this web site www.servicetaxinda.co.in . The Accounting Heads are also mentioned in the list, which need to be mentioned on the tax payment documents (GAR-7 or TR-6), while depositing the Service Tax and other related dues in the banks.


Q. How to decide whether Service Tax is payable by a person?
A.
A.)  If you are engaged in providing service to your customer, please check:—

Whether the service rendered by you is falling under the scope of any of the taxable services .
Whether there is a general or specific exemption available for the category of service provided under any notification.
Whether you are entitled to the value based exemption of Rs. 10 Lakhs available for small service
Whether the service charges were received for the services provided or to be provided.
In case the service provided by a person falls within the scope of the taxable services and if such service is not fully exempted, the service tax is payable on the value of the taxable service received subject to the eligible abatements.(if any)

B.)  If you are availing the services of the service provider, please check:—

Whether the service received by you is falling under the scope of any of the services where the recipient of the service is liable to pay Service Tax in terms of Section 68(2) of the Act read with Rule 2(d) of the Service Tax Rules, 1994.
In case the service received by recipients of such service is falling under the scope of any of the taxable services defined under section 65 of the Finance Act, 1994, the recipients of the service shall pay Service Tax having regard to the exemptions/abatements admissible, if any.
Please note that the value based exemption for small scale service providers under Notification No. 6/2005-ST, dated 01.03.2005 effective from 01.04.2005 is not admissible to such recipients of taxable services.



 Q. What is the rate of Service Tax?
CLICK HERE FOR LATEST SERVICE TAX RATES & CHANGES IN 2015 BUDGET

Q. What is meant by “value of taxable service"?
A.
Normally, the "value of taxable service" means, the gross amount received by the service provider for the taxable service provided or to be provided by him. Section 67 of the Finance Act, 1994 read with Service Tax (Determination of Value) Rules, 2006, has to be followed to arrive at the taxable value.
For certain services, a specified percentage of abatement is allowed from the gross amount collected for rendering the services, subject to the conditions, inter alia, that CENVAT Credit has not been availed by the service provider and cost of goods sold in the process of providing the subject service is not deducted in terms of Notification No. 12/2003-ST, dated 20.6.2003.
There is also a composition scheme for ‘works contract service’, where the person liable to pay service tax in relation to works contract service shall have the option to discharge his service tax liability on the works contract service provided or to be provided, instead of paying service tax at the rate specified in section 66 of the Act, by paying an amount equivalent to 4% of the gross amount charged for the works contract..

Q. What is meant by registration? Who should apply for registration under Service Tax law?
A.
Every person providing a taxable service of value exceeding Rs. 9 lakhs, is required to register with the central excise or service tax office having jurisdiction over the office of such service provider.
In case a recipient is liable to pay service tax, registration is required by him.
There is also provision for centralised registration
The ‘Input Service Distributors’ also require registering themselves.

Q. Why registration is necessary?
A. Registration is identification of an assessee. Identification is necessary to deposit service tax, file returns and undertake various processes ordained by law relating to service tax.

Q. What is the meaning of an ‘assessee’ in relation to Service Tax?
A. ‘Assessee’ means a person liable to pay Service Tax and includes his agent.

Q. When can a prospective assessee obtain registration?
A.
When a person commences business of providing an existing taxable service, he is required to register himself within 30 days of such commencement.
In case a new taxable service is introduced, an existing service provider must register himself, unless he is eligible for exemption under any notification, within a period of 30 days from the date of new levy.

Q. What does the word “person” appearing in the definition of taxable service mean?
A. The word "Person" shall include any company or association or body of individuals, whether incorporated or not. Thus this expression includes any individual, HUF, proprietary firm or partnership firm, company, trust, institution, society etc.

Q. What is the procedure for Registration? Who should be approached for Service Tax Registration?
A. An application in Form ST-1 (in duplicate) has to be filed before the jurisdictional Central Excise/Service Tax officer. Certain documents to verify the correctness of declaration in the said form as may be required by the registering authority, such as copy of PAN card, proof of address of business premise(s), constitution of the business [proprietorship, firm, company, trust, institute etc.] etc. The copies may be self-certified by the applicant. In case of doubts in select cases, original documents may have to be presented for across the counter verification and return.

Q. Is there any provision for centralized registration?
A. Service providers having centralised accounting or centralised billing system, at their option, can have Centralised registration at one or more places. Commissioner of Central Excise/Service Tax in whose jurisdiction centralized account or billing office of the assessees exists, is empowered to grant centralized registration.
Q. Is PAN allotted by the Income Tax Department a must for obtaining Service Tax Registration?
A. Having PAN is essential because the Service Tax Registration number is generated based on the PAN issued by the Income Tax Department. However, in the absence of PAN, a temporary Service Tax registration number would be issued for assessees who are not having PAN at the time of filing the application (ST-1) for Service Tax registration till such time they obtain PAN. Once the PAN is obtained, the Service Tax assessee should obtain the PAN - based Service Tax Registration number.


PAYMENT OF SERVICE TAX
Q. How to pay Service Tax?
A. You may pay service tax by G.A.R.7 (previously known as TR6 Challan which was yellow in colour) in the specified branches of the designated banks. The details of such Banks and branches may be obtained from the nearest Central Excise Office/Service Tax Office. Service Tax can also be paid electronically, called e-payment facility.

Q. When is Service Tax required to be paid? For individual or a proprietary or partnership firm.
A.
—Quarterly -by the 5th day of the month following each quarter and by the 6th day of the month following each quarter if the duty is deposited electronically through internet banking. For example, Service Tax for the quarter ending 30th of June is to be paid by 5th or 6th of July as the case may be.

For all other categories (Company, Society, Trust etc.).—Monthly - by the 5th day of the succeeding month and by the 6th day of the succeeding month if the duty is deposited electronically through internet banking;

Exception: For the month of March or quarter ending March, all assessees have to pay by 31st of March of the Calendar year (Rule 6(1) of the STR, 1994

Q. If full details are not available to assess correct service tax, how can service be paid by due date?
A. You may seek in writing, provisional assessment, giving reasons, from the jurisdictional Asst./Deputy Commissioner of Central Excise/Service Tax under rule 6 (4) of the STR, 1994. He may allow payment of Service Tax on provisional basis, on such value of taxable service as may be specified by him.

Q. Can excess payment be adjusted while paying tax for the next month or quarter?
A.
Yes. Where an assessee has paid to the credit of the Government in respect of a taxable service, which is not so provided by him, either wholly or partially for any reason, the assessee may adjust the excess Service Tax so paid by him (calculated on a pro-rata basis) against his Service Tax liability for the subsequent period, if the assessee has refunded the value of taxable service and the Service Tax thereon to the person from whom it was received (Rule 6(3) of the STR, 1994).
Further, assesses having centralised registration who paid excess amount of Service Tax, on account of non-receipt of details regarding the receipt of gross amount for the services at his other premises or offices, may adjust such excess amount against the Service Tax liability for the subsequent period and furnish the details of such adjustment to the Jurisdictional Superintendent of Central Excise/Service Tax within 15 days from the date of such adjustment (Rule 6(4A) of the STR, 1994).
In all other cases of excess payment, refund claims have to be filed with the Department. The refund claims would be dealt as per the provisions of Section 11B of the Central Excise Act, 1944, which is made applicable to Service Tax under Section 83 of the Finance Act 1994.
It is important to note that any amount of Service Tax paid in excess of the actual liability, is refundable, only if it is proved that the claimant of refund had already refunded such amount to the person from whom it was received or had not collected at all (Section 11 B of the Central Excise Act, 1944 which is applicable to Service Tax matters under Section 83 of the Act).

Q. What is the head of account into which the Service Tax amount is to be paid in respect of various services?
A. Separate “Head of account ” has been specified for each taxable service. This must be mentioned on G.A.R. 7 (previously known as TR-6) challans for proper accounting. ( See List of Service tax Code Visit Home Page)

Q. What is GAR-7 challan? Where is it available?
A.
GAR-7 is the document for payment of service tax.

GAR-7 or TR-6 challan is also available in any stationary shop selling government forms. You can download this challan from www.servicetaxindia.co.in . Click Home page and then FORMS

Q. Can the Service Tax be deposited in Non-designated banks?
A. No. For payment of Service Tax, specific bank has been nominated for every Central Excise/Service Tax Commissionerate. If Service Tax is deposited in a Branch/Bank other than the nominated Bank/Branch, it amounts to non-payment of Service Tax (Rule 6(2) of the STR, 1994). In any case, a nondesignated bank will not accept service tax challans.
Q. Whether the payment of Service Tax is to be made for the billed amount or for the value received?
A.
The Service Tax for a particular period is payable on the amount/value of taxable service received during that period and not on the gross amount billed to the client.

If the charges for the taxable service have been received in advance prior to rendering of the services, the Service Tax is payable even if the services are yet to be provided by them (Section 67 and Rule 6(1) of the STR, 1994).

Please also refer to the Service Tax (Determination of Value) Rules, 2006
Q. Can service tax be paid by cheque?
A. Yes, you can pay service tax be paid by cheque.
Q. When paid by cheque, which date will be treated as date of payment?
A. The date of deposit of cheque is the date of payment of Service Tax. If the cheque is dishonoured, it would mean as if the Service Tax has not been paid and the relevant penal consequences would follow. (Rule 6(2) of the STR, 1994).
Q. When payment is made by a client to an assessee after deducting his Income Tax liability under the Tax deduction at source (TDS) provision, whether the Service Tax liability of the assessee is only towards the amount actually received from that client or tax is to be paid on the amount including the Income Tax deducted at source also?
A. Service Tax is to be paid on the gross value of taxable service which is charged by a Service Tax assessee for providing a taxable service. Income tax deducted at source is includible in the charged amount. Therefore, service Tax is payable on the gross amount including the amount of Income Tax deducted at source also.
Q. What is the interest rate applicable on delayed payment of Service Tax?
A. Every person, liable to pay the service tax in accordance with the provisions of section 68 or rules made thereunder, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed, shall pay simple interest @13% per annum. Interest is payable for the period from the first day after the due date till the date of payment of any defaulted service Tax amount. Refer to Section 75 of the Finance Act, 1994.
Q. Can interest be waived, and by whom?
A. Interest payments are mandatory in nature and cannot be waived in ordinary jurisdiction.
Q. What are the penal consequences if the Service Tax is not paid or paid late?
A. A mandatory penalty, not less than Rs. 200 per day or @2% of such tax per month, whichever is higher, shall be imposed by the adjudicating authority. However, the penalty amount payable shall not exceed the amount of service tax payable. - (Refer to section 76 of the Finance Act, 1994).
Q. Whether Service Tax is payable after providing the service or after the receipt of the service charges?
A. Service Tax is payable on the amount received towards provision of a taxable service including any amount received in advance.

SERVICE TAX RETURN
Q. What are the Returns a service tax assessee has to file?
A.
ST-3 Return – For all the registered assessee, including Input Service
Distributors,
ST-3A Return – The assessee who is making provisional assessment under rule 6(4) of the Service Tax Rules, 1994.

Q. When to file returns?
A. ST-3 Return is required to be filed twice in a financial year – half yearly. Return for half year ending 30th September and 31st March are required to be filed by 25th October and 25th April, respectively.
Q. How to file Service Tax Returns?
A. The details in respect of each month of the period for which the return is filed, should be furnished in the Form ST-3, separately. The instructions for filing return are mentioned in the Form itself. It should be accompanied by copies of all the GAR-7 (TR- 6) Challans for payment of Service Tax during the relevant period.
Q. Where to file return?
A. ST-3 or ST-3A is filed in triplicate to the Superintendent of Central Excise/Service Tax with whom the assessee has registered himself.
Q. Is filing of return compulsory even if no taxable service provided or received or no payments received during a period (a particular half year)?
A. Filing of return is compulsory, even if it may be a nil return, within the prescribed time limit, failing which penal action is attracted.
Q. Whether a single Return is sufficient when an assessee provides more than one service?
A. A single return is sufficient because the ST-3 Return is designed to capture details of each service.
Q. Is there any penalty for non-filing or delayed filing of the Returns?
A. If a person fails to furnish the ST-3 Return within the due date [25th October and 25th April every year] he shall be liable to penalty which may extend to an amount not exceeding Rs 2000/- depending upon Period of Delay.

REFUND
Q. What is the procedure for claiming refund?
A.
Application in the prescribed form (Form - R) is to be filed in triplicate with the jurisdictional Asst./Deputy Commissioner of Central Excise/Service Tax.
The application should be filed within one year from the relevant date as prescribed in Section 11B of the Central Excise Act, 1944 which has been made applicable to Service Tax refund matters also.
Application should be accompanied by documentary evidence to the effect that the amount claimed as refund is the amount actually paid by him in excess of the Service Tax due and the incidence of such tax claimed as refund has not been passed on to any other person.

EXEMPTIONS
Q. What are the exemptions available for small service providers?
A.
Service Tax is fully exempted in respect of the taxable services of aggregate value not exceeding Ten lakh rupees in any financial year. w.e.f 1-4-2008

The above mentioned exemption based on the turnover is not available to the persons who are liable to pay Service Tax but are not the service providers. For example:

The recipient of services from an overseas service provider who has no registered office in India
A company incurring the Transportation charges for availing the services from Goods Transport Agencies, for transportation of goods by Road.
This exemption was introduced with effect from 01.04.2005. (Notification No. 6/2005-ST, dated 01.03.2005).

FOR LATEST SERVICE TAX UPDATES CLICK HERE

GRATUITY
What is Gratuity?
- Gratuity is a kind of retirement benefit. It is earned by an employee as a reward for
long and meritorious service
- It is payable on termination of employment after the employee has rendered
continuous service for not less than 5 years
- Termination of employment may be due to any of the following:
o Superannuation
o Retirement/Resignation
o Death/Disablement due to accident/disease (in this case, 5-year limit on
service is not applicable)

What is continuous service?
- It is the period of uninterrupted service by employee. However, period of
interruption on account of the following shall be part of continuous service:
o Sickness/Accident/Leave
o Absence from duty without leave (not if order treating absence as break in
service is issued by employer)
o Lay-off/Strike/Lock-out
o Cessation of work not due to any fault of employee
- If employee is not in continuous service for a period of 1 year, he shall be deemed to
be in continuous service if during the period of 12 months preceding the date with
reference to which the calculation is being made, the employee has worked under
the employer for not less than
o 190 days (employed in mine or any establishment which works for less than 6
days in a week)
o 240 days (in any other case)
- In case of seasonable establishments if the employee is not in continuous service for
1 year, an employee shall be deemed to be in continuous service if he has worked
for not less than 75% of the number of days on which the establishment was in
operation during such period

Whom is the Gratuity Act applicable?
- Every factory, mine, oilfield, plantation, port & railway company
- Every shop/establishment in which 10 or more persons are/were employed, on any
day of the preceding 12 months
- Such other establishments in which 10 or more persons are/were employed, on any
day of the preceding 12 months, as the Central Government may specify in this
behalf by notification in the official gazette

Who are not covered under the Gratuity Act?
- Apprentices
- Persons who hold civil posts under Central Government/State Government and are
governed by any other Act or Rules providing for payment of gratuity
Exemption
- Govt may exempt any establishment, if its employees are in receipt of gratuity or
pensionary benefits not less favourable than the benefits provided under the
Payment of Gratuity Act

How is Gratuity computed?
- For every completed year of service or part thereof in excess of 6 months, the
employer shall pay gratuity @15 days’ wages based on rate of wages last drawn
- In case of monthly rated employee, 15 days wages = rate of wages/26 x 15
For example, X has resigned ABC Ltd after being employed for a period of 5
years 7 months drawing a wage of ₹20,000 per month. Gratuity payable to X
is ₹69,231 [(20000/26 x 15) x 6]
- In case of piece-rated employee, last drawn wages = average wages (excluding
overtime) for last 3 months preceding the termination of employment
- In case of seasonable establishments, gratuity payable @7 days’ wages for each
season (for seasonal workers)
- Maximum gratuity payable is ₹10 lacs

What is wage?
- Wage means basic salary and includes dearness allowance
- It does not include HRA/bonus/commission/overtime/other allowances

When can Gratuity be forfeited?
- Gratuity of an employee whose services have been terminated for any act, wilful
omission or negligence causing any damage/loss to, or destruction of, property
belonging to the employer, shall be forfeited to the extent of damage/loss so caused
- Gratuity may be partially/wholly forfeited if services have been terminated for
riotous/disorderly conduct or act of violence of employee, offence involving moral
turpitude committed in the course of employment
- However, the employee shall be given an opportunity of being heard before such
forfeiture

What is compulsory insurance?
- Every employer shall obtain an insurance for his liability for payment of gratuity from
LIC or any other prescribed insurer
- However, the following employers are exempted from compulsory insurance:
o Employer who has already established an approved gratuity fund & who
desires to continue such arrangement
o Employer employing 500 or more persons who establishes an approved
gratuity fund
- Every employer shall register with the Controlling Authority after obtaining
insurance or establishing approved gratuity fund
- Where employer fails to pay insurance premium or any contribution to an approved
gratuity fund, he shall be liable to pay gratuity under the Gratuity Act (including
interest, if any, for delayed payments) with the Controlling Authority

Who is Controlling Authority (CA)?
- It means an authority appointed by Central/State Government
Nomination
- Every employee who has completed 1 year of service, shall make a nomination
within 30 days of completion of 1 year
- An employee may distribute amount of gratuity amongst more than one nominee
- If employee has family, nomination may be made in favour of one or more members
of the family (nomination made in favour of person who is not a member of family is
void)
- If the employee has no family, nomination may be made in favour of any person and
if the employee subsequently acquires a family, such nomination shall forthwith
become invalid & employee, shall within 90 days make a fresh nomination in favour
of one/more members of his family
- A nomination may be modified by an employee at any time after giving a written
notice to the employer
- If nominee predeceases the employee, the interest of nominee shall revert to
employee and the employee shall then make a fresh nomination
- Employer shall keep the nomination in safe custody and nomination shall take effect
from the date of receipt of same by employer

What is family under Gratuity Act?
Family includes the following:
- Employee
- His/her spouse
- His/her children whether married/unmarried
- His/her dependent parents
- His/her dependent parents of spouse
- Widow & children of her/his predeceased son, if any

How to apply for Gratuity?
- An employee who is eligible for payment of gratuity shall send an application to the
employer within 30 days from the date it becomes payable
- Where the date of superannuation or retirement is known, employee may apply to
the employer before 30 days of date of superannuation/retirement
- A nominee of an employee shall apply within 30 days from the date gratuity
becomes payable to him/her
- A legal heir shall apply within 1 year from the date gratuity becomes payable to
him/her
- Application filed after expiry of specified period may be entertained by the
employer, if there is sufficient cause for delay
Determination of amount of Gratuity & Payment by employer
- The employer shall determine the amount as soon as it becomes payable and give
notice to the person to whom it is payable
- Notice is also to be given to CA specifying the amount of gratuity so determined
irrespective of the fact whether an application has been made or not by the
concerned
- The employer shall arrange to pay gratuity within 30 days from the date it becomes
payable to person to whom it is payable
Payment of interest by employer in case of delay in payment
- If gratuity is not paid within 30 days, the employer shall pay simple interest at the
rate notified
- The interest shall be payable from the date on which the gratuity becomes payable
to the date on which it is paid
- No such interest shall be payable if delay in payment is due to default of employee
and employer has obtained permission in writing from the CA for delayed payment
Dispute
- If there is dispute as to the amount payable or admissibility of claim or person
entitled to receive gratuity, the employer shall deposit such amount as the employer
admits to be payable, with the CA
- Employer/employee whoever is raising the dispute may make application to the CA
for deciding the dispute
- CA shall after inquiry and giving reasonable opportunity of being heard to the
parties, determine the matters in dispute. If amount is payable to the employee, he
shall direct the employer to pay such amount as reduced by the amount already
deposited by the employer
- CA shall pay the amount deposited by the employer, to the person entitled thereto
Application to the Controlling Authority for direction
- If any employer
-- Refuses to accept nomination or application for payment of gratuity
-- Issues notice specifying the amount which is considered by the applicant to
be less than what is payable or rejecting eligibility of payment of gratuity
-- Having received an application, fails to issue any notice within 15 days,
the claimant employee/nominee/legal heir, may within 90 days apply to the CA for
issuing a direction. CA may accept application after 90 days on sufficient cause
shown by the applicant
- Any person aggrieved by an order of CA may within 60 days (extendable by a further
period of 60 days on sufficient cause) of receipt of order, prefer an appeal to the
Central/State Government or such other authority as may be specified
- No appeal by an employer shall be admitted unless at the time of preferring the
appeal, the appellant deposits such amount with the appellant authority
- Central/State Government or appellant authority, after giving parties a reasonable
opportunity of being heard, confirm, modify or reverse the decision of the CA
Recovery of Gratuity
- If the amount is not paid by the employer within the prescribed time, to the person
entitled thereto, the latter shall make an application to the CA
- CA shall issue a certificate for the amount to the collector
- The collector shall recover the amount with compound interest (@15%) as arrears of
land revenue and pay the same to the person entitled thereto
- Before issuing the certificate to collector, the CA shall give employer a reasonable
opportunity of showing cause against the issue of such certificate
Protection of Gratuity
- No gratuity payable shall be liable for attachment in execution of any decree/order
of any court
- However, gratuity payable to heirs of an employee on his/her death is attachable

To Duplicate a voucher
Go to List of Vouchers
Press ALT + 2
It will create a voucher similar to the one where you positioned the cursor and used this key combination. Now you can post
a duplicate voucher or can modify amount of new voucher. This short cut help is posting new entries for similar heads of
account with different amount . Say when you have to post monthly entry for bank interest or rent etc, you can use this short
cut keys for faster entry.
To Add a voucher
When you are viewing a report or voucher list and you want to add a new voucher, then you don’t need to go main menu of
tally or voucher entry screen. you can do this job straight away from here
Press ALT + A and enter a new voucher and its all done!
To create a master at a voucher screen (if it has not been already assigned a different function, as in reports
like Balance Sheet, where it adds a new column to the report)
ALT + C
At voucher entry and alteration screens, at a field where you have to select a master from a list. If the necessary account has
not been created already, use this key combination to create the master without quitting from the voucher screen
when you are middle of posting an entry, and want to create a new group then just from the filed of ledger account press
ALT+C and you will be prompted to new ledger account creation.
you can also create a new group from by this way, or a new item ledger,new unit, currency from the respective field
Another use of this short cut keys can be done from the amount field of an entry.(To access Auto Value Calculator in the
amount field during voucher entry)
Suppose you are posting an entry and you want to enter the amount of 1008*10% then from the amount field press ALT+C
and calculate 1008*10% and the result will be automatically captured by the amount field.
At all voucher entry screens in the Amount field
To delete a voucher
ALT + D
To delete a master
To delete a column in any columnar report
(if it has not been already assigned a different function, as explained above)
At Voucher and Master (Single) alteration screens. Masters can be deleted subject to conditions, as explained in the manual.
All the reports screen which can be viewed in columnar format
To export the report in ASCII, Excel, HTML OR XML format
ALT + E
At all reports screens in TALLY.ERP 9
To insert a voucher
ALT + I
To toggle between Item and Accounting invoice
At List of Vouchers – inserts a voucher before the one where you positioned the cursor and used this key combination.
At creation of sales and purchase invoice
To select the Language Configuration
ALT + G
At almost all screens in TALLY.ERP 9
To select the Keyboard Configuration
ALT + K
At almost all screens in TALLY.ERP 9
To upload the report at your website
ALT + O
At all reports screens in TALLY.ERP 9
To select language for TALLY.ERP 9 Interface
ALT + G
At almost all screens of TALLY.ERP 9
ALT + M
To Email the report
At all reports screens in TALLY.ERP 9
ALT + N
To view the report in automatic columns
At all the reports where columns can be added
To print the report
ALT + P



At all reports screens in TALLY.ERP 9
To remove a line in a report
ALT + R
At all reports screens in TALLY.ERP 9
To bring back a line you removed using ALT + R
ALT + S
At all reports screens in TALLY.ERP 9
To retrieve the last line which is deleted using Alt + R
ALT + U
At all reports screens in TALLY.ERP 9
From Invoice screen to bring Stock Journal screen
ALT+ V
At Invoice screen > Quantity Field > Press Alt + V to select the Stock Journal.
To cancel a voucher in Day Book/List of Vouchers
ALT + X
At all voucher screens in TALLY.ERP 9
To Register TALLY.ERP 9
ALT + R
At almost all screens in TALLY.ERP 9.
To accept a form
CTRL + A
wherever you use this key combination, that screen or report gets accepted as it is
At almost all screens in TALLY.ERP 9, except where a specific detail has to be given before accepting
To select the Budget
CTRL + B
At Groups/Ledgers/Cost Centres/ Budgets/Scenarios/Voucher Types/ Currencies (Accounts Info) creation and alteration
screen
To check the Company Statutory details
CTRL + ALT + B
At all the menu screens
To select the Cost Centre
CTRL + C
To select the Cost Category
At Groups/Ledgers/Cost Centres/ Budgets/Scenarios/Voucher Types/ Currencies (Accounts Info) creation and alteration
screen
At Stock Groups/ Stock Categories/ Stock Items/ Reorder Levels/ Godowns/ Voucher Types / Units of Measure ( Inventory
Info) creation/alteration screen
To select the Currencies
CTRL+ E
At Groups/Ledgers/Cost Centres/ Budgets/Scenarios/Voucher Types/ Currencies (Accounts Info) creation and alteration
screen
To select the Group
CTRL + G
At Groups/Ledgers/Cost Centres/ Budgets/Scenarios/Voucher Types/ Currencies (Accounts Info) creation and alteration
screen
To view the Support Centre
CTRL + H
At Almost all screens in TALLY.ERP 9
To select the Stock Items
CTRL + I
At Stock Group/ Stock Categories/ Stock Items/ Reorder Levels/ Godowns/ Voucher Types / Units of Measure ( Inventory
Info) creation/alteration screen
To import statutory masters
Ctrl + Alt + I
At all menu screens
To Login as Remote Tally.NET User
CTRL + K
At Almost all screens in TALLY.ERP 9
To select the Ledger
CTRL + L
To mark a Voucher as Optional
At Groups/Ledgers/Cost Centres/ Budgets/Scenarios/Voucher Types/ Currencies (Accounts Info) creation and alteration
screen
At the creation and alteration of Vouchers
To select the Godowns
CTRL + O
At Stock Group/ Stock Categories/ Stock Items/ Reorder Levels/ Godowns/ Voucher Types / Units of Measure ( Inventory
Info) creation/alteration screen
CTRL + Q
To abandon a form – wherever you use this key combination, it quits that screen without making any changes to it.
At almost all screens in TALLY.ERP 9.
CTRL + R
To repeat narration in the same voucher type
At creation/alteration of voucher screen
CTRL + Alt + R
Rewrite data for a Company
From Gateway of Tally screen
CTRL + S
Allows you to alter Stock Item master
At Stock Voucher Report and Godown Voucher Report
CTRL + U
To select the Units
At Stock Groups/ Stock Categories/ Stock Items/ Reorder Levels/ Godowns/ Voucher Types / Units of Measure ( Inventory
Info) creation/alteration screen
CTRL + V
To select the Voucher Types
To toggle between Invoice and Voucher
At Groups/Ledgers/Cost Centres/ Budgets/Scenarios/Voucher Types/ Currencies (Accounts Info) creation and alteration
screen
At creation of Sales/Purchase Voucher screen
CTRL + K
To login to Control Centre
At almost all screens of TALLY.ERP 9
CTRL + H
To access Support Centre. Wherein you can directly post your queries on the functional and technical aspects of
Tally.ERP9, Shoper and Tally.Developer.
At almost all screens of TALLY.ERP 9
Alt + Enter
To view the Voucher display
At Day Book and almost all Voucher Reports
Alt + S
To view Stock Query report
At all Voucher Creation and Alteration screens where inventory is applicable except Contra, Reversing Journal,
Memorandum and Physical Stock Voucher

CLICK HERE TO DOWNLOAD TALLY 9 ERP SHORT-CUT KEYS IN PDF

Years	Super Profit
YEAR 1	15,000
YEAR 2	15,000
YEAR 3	15,000
GW (Total of Super Profits)	45,000

Years	Super Profit	Disc Factor @ 15%	Disc Value
YEAR 1	15,000	0.8696	13,044
YEAR 2	15,000	0.7561	11,342
YEAR 3	15,000	0.6575	9,863
GW (Total of Super Profits)			34,248

	Name of Partners -à	A	B	C is New
STEP 1	Find Existing PSR	1/2	1/2	NA
STEP 2	Find New PSR	4/9	2/9	3/9
STEP 3	Compute Old PSR minus New PSR	1/2 - 4/9 = 1/18	1/2 - 2/9 = 5/18	NA
STEP 4	SFR is	1	5	NA
CHECK1	Total of SFR = New Partner's PSR	1/18	5/18	3/9 (same as 6/18)

STEP 4

Compute SFR (Ratio or Ratio) SFR is

1/18 / (1/18 + 5/18) = 1/6 1

5/18 / (1/18 + 5/18) = 5/6 5

NA

A Formula is a simple way of expressing information. These are usually used
in Science and Mathematics apart from commerce areas.
In Commerce, formulae are used in several areas like Interest and Annuity
calculations, Capital Budgeting, Portfolio Management, Standard Costing,
Marginal Costing, PERT Analysis, Learning Curve effects etc. In commerce
areas, unlike Science and Mathematics, the derivations and proving of
formulae is of not much importance nor ever asked in examinations. What
is required is the awareness of the formula with all its components,
nomenclature and meanings of the terms used in it. More important thing is,
the areas where formulae can be applied and the assumptions under which
they hold good is also required to be known.


When formulas are expressed in the form of equations they help in finding
the value of the unknown variable, given the rest of the variables and the
result.

This helps us in doing iterations and performing sensitivity analysis
and “what if?” analysis. Formulae can be used in spread sheet computations
also to express relationships and their inter linkages.
Formulae help in solving the problems in a faster and simple way. Further,
we can devise shortcuts as well through which we can save lot of time and
laborious workings.
Very often, I come across with students saying that they have mugged up all
the formulae but yet not able to solve the problems in examinations. This is
something like that a person who knows all the alphabets from A to Z wants
to claim that he is an expert in English literature. It is not just sufficient to
know a formula. As said earlier, it is also required to know all its
components, their nomenclatures, the areas where they can be applied and
the more important thing is the underlying assumptions and limitations
under which it can be used. Students are required to be familiar with these
aspects to fully enjoy the luxury of formulas through which they can save
time and laborious workings. This can be achieved by following two things.
Firstly, you need to understand the theory of respective areas of the
formulae and secondly, solving several varieties of problems using the
formulae and practicing them. This principle holds good for mnemonics also.
In this case you must be able to write atleast few small sentences though
not a big paragraph by recollecting a single letter or word.
C A Coaching Centre, Nallakunta, Hyderabad. P V Ram, B. SC., ACA, ACMA – 98481 85073
(Offering Coaching for CA & CMA Aspirants) Page 3 of 34
Students are suggested to study the theory of the subject well and
understand it fully. When formulas are come across they need to jot down
the formulae along with their nomenclature at a single place for quick
reference. They need to solve as many problems as possible. After doing
this they can memorise the formulae. Further, if you start memorising
formulae after studying theory well and solving problems, it will be very easy
to understand, remember and apply them. In fact, in this method, some of
the formulae would have already got registered in your brain and do not
require the effort of memorising also.
Suggestions and Comments are welcome!
Thanks!
P V Ram

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Attention Students
Applicability of the Companies Act, 2013 for June 2015 Examination
to
CS FOUNDATION PROGRAMME
EXECUTIVE PROGRAMME (New Syllabus)
AND
PROFESSIONAL PROGRAMME (Old & New Syllabus)



It is informed that those sections of the Companies Act, 2013 and the rules made
thereunder which have been notified by the Government of India and came into
force up to December 31, 2014 (including Amendments/clarifications/circulars
issued thereunder upto December, 2014) shall be applicable for June 2015
Examinations.

This means that the question papers on the subjects of Foundation and Executive
Programme (New Syllabus) and Professional Programme (Old and New Syllabus)
shall carry questions from the provisions of the Companies Act, 2013 notified
upto December 31, 2014. In respect of sections of the Companies Act, 2013 which
have not been notified till December 2014, applicable sections of Companies Act,
1956 will continue to apply.

Date : March 04, 2015 
Place : Delhi

(1) Amendment Rules/Circulars/Notifications/Order issued under Companies Act 2013, by Ministry of Corporate affairs 

A. Companies (Appointment and Qualification of Directors) Amendment Rules, 2014

B. Companies (Meeting of Board and its Powers) Second amendment Rules, 2014

C. Companies (Specification of Definitions Details) Rules, 2014

D. Companies (Corporate Social Responsibility) Amendment Rules, 2014

E. Companies (Audit and Auditors) Amendment Rules, 2014

F. Companies (Management & Administration) Second Amendment Rules, 2014

G. Orders, Notifications and Circulars

(2) New Regulations by SEBI

A. SEBI (Research Analyst) Regulations, 2014

B. SEBI(Infrastructure Investment Trusts) Regulations, 2014

C. SEBI (Real Estate Investment Trusts) Regulations, 2014

(3) Amendments in SEBI Act, Rules and Regulations 

A. Mutual Funds

B. Alternative Investment Fund

C. Regulatory Framework Governing Stock Exchanges

D. SEBI Act, 1992

E. Depositories

F. Issue of Securities

G. Regulatory Framework Relating to Securities Market Intermediaries

H. Investor Protection

(4) Replaced or Repealed SEBI Regulations

A. SEBI (Foreign Portfolio Investors) Regulations, 2014

B. SEBI (Share Based Employee Benefits) Regulations, 2014



(5) Clause 49 of the Listing Agreement 

(6) The Depository Receipts Scheme, 2014 

(7) Company Accounts and Auditing Practices 

(8) Cost Accounting Records and Cost Audit 

(9) Amendments in Industrial and Labour Laws 

A. Labour Laws (Exemption From Furnishing Returns and Maintaining Registers by Certain Establishments) Amendment Act, 2014

B. The Apprentices (Amendment) Act, 2014

C. Employees’ Provident Funds (Amendment) Scheme, 2014

D. Employees’ Deposit-Linked Insurance (Amendment) Scheme, 2014 E. Employees’ Pension (Amendment) Scheme, 2014 F. Payment of Wages Act, 1936

(10) Finance( No. 2) Act, 2014 and Notifications issued by CBDT & CBEC

A. Direct Taxation – Laws and Practice

B. Indirect Taxation- Laws and Practice


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The Central Government acquires a house property owned by Mr. Manish on October 17, 2005 fixing
compensation at Rs. 32,00,000. The indexed cost of acquisition of this house property is Rs. 28,00,000.

The Government paid Rs. 20,00,000 partly on May 13, 2010 and balance on March 11, 2012. Being aggrieved against the award, Mr. Manish filed an appeal. The Court, by an interim order dated July 19, 2014 ordered Central Government to pay Rs. 5,00,000 which was paid on 15th September,2014. However, Court passed final order dated 11th August, 2015 fixing enhanced compensation of Rs. 17,00,000. The Central Government paid 12,00,000 (Rs. 5,00,000 has already been paid) on 12th December, 2015. Legal expenses incurred by Mr. Manish were Rs.45,000. Compute the income of Mr. Manish under the head “Capital gains”.

Before, we go to the solution, let us take an overview of section 45(5).
When section 45(5) is applicable- In any of the following cases, section 45(5) is applicable —

1. When the transfer of a capital asset is by way of compulsory acquisition under any law.
2. When a capital asset is transferred (not by way of compulsory acquisition) and the consideration is
approved or determined by the Central Government (not by a State Government) or the Reserve Bank
of India.
Section 45(5)(a):- Tax Treatment of initial compensation–
Initial compensation is chargeable to tax in the previous year in which such compensation (or part thereof) is
first received.
Further, for computing capital gain, initial compensation shall be taken as full value of consideration.
Section 45(5)(b):-Tax Treatment of enhanced compensation - If any compensation is enhanced by a court,
tribunal or any authority, then tax treatment shall be as under—

1. It shall be taxable in the previous year in which enhanced compensation is received by the assessee.

2. In this case, the cost of acquisition and the cost of improvement shall be taken as nil.

3. Litigation expenses for getting the compensation enhanced are deductible as an expense in connection
with transfer.



4. Enhanced compensation can be short-term capital or long-term capital depending upon the nature of
original capital gain.
Proviso to Section 45(5)(b) :-Tax Treatment of compensation received under interim order of a court, tribunal
etc. [inserted by Finance Act, 2014 effective from A.Y. 2015-16]
This proviso states that any amount of compensation received in pursuance of an interim order of a court,
Tribunal or other authority shall be deemed to be income chargeable under the head "Capital gains" of the
previous year in which the final order of such court, Tribunal or other authority is made