Advance receipts if your company turnover is less than Rs.1.5 Crores
If your company turnover in the previous financial year was less than 1.5 crores then you need not to pay tax on advance receipts against supply of goods.
Advance receipts if your company turnover is more than Rs.1.5 Crores
If the turnover of your company is more than Rs.1.5 crores then you have to enable the option – Enable tax liability on advance receipts to Yes in the company GST details screen, to calculate the tax liability on advance receipts.
You need to record advance received from customer against supply of goods or services in a receipt voucher.
Example 1: Advance received and total order completed in same month.
Advance receipt -> Raise tax liability -> Outward supply (adjusting advance) -> reverse the tax liability of advance amount ->File the returns
Example 2: Advance received in current month and order completed in subsequent month.
Advance receipt -> Raise tax liability -> File returns -> Outward supply in next month (adjusting advance) ->reverse the tax liability of advance amount ->File the returns
How to enable tax liability on advance receipts
Path: Gateway of Tally -> F11 Features -> Statutory & Taxation
Enable tax liability on advance receipts: Yes
Record advance received from customer transaction in Tally.ERP9
Path: Gateway of Tally -> Accounting Vouchers -> F6 Receipt
Click on Advance receipt Vfor advance receipt
Account: Select the bank
Select party ledger
In the above advance receipt details screen under particulars you need to select stock item from the list of stock items, against which stock item you have received advance amount.
Enter advance amount, which is inclusive of GST
Select the type of reference as Advance
During the advance receipt details screen click on L Show ledgers and click on F12 Configure and enable the below options.
Allow to provide rate of stock items: Yes, to enter or modify the slab rate of the stock item.
Allow to provide quantity for calculation of cess on quantity: Yes, to enter the cess rate
Allow modification of tax details: Yes, to override the GST and cess rates during the voucher.
Press enter to save the screen
During the advance receipt voucher press Alt+P to print advance receipt.