Purchase of Services from a Regular Party as SEZ Unit in TallyPrime

In TallyPrime, recording the purchase of services from a Regular company as an SEZ unit involves precise steps to ensure GST compliance and proper accounting treatment.

As SEZ units typically enjoy exemptions, the responsibility for GST often shifts to the supplier, making it crucial to document such transactions accurately.

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1. Steps to Record the Purchase of Services from a Regular Party as SEZ Unit in TallyPrime

1. Configure GST in TallyPrime

1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.
2. Enable Goods and Services Tax (GST).
3. Set your business’s GST Registration Type to SEZ.
4. Enter your GSTIN under company details.
5. Save the configuration.

2. Create Ledgers

a. Service Provider Ledger

1. Navigate to Accounts Info > Ledgers > Create.
2. Name: XYZ Services (supplier’s name).
3. Group: Sundry Creditors.
4. Enable GST: Yes.
5. GST Details:
   • Enter the supplier’s GSTIN.
   • Set the Registration Type as Regular.
6. Save the ledger.

b. Expense Ledger for Service

1. Go to Accounts Info > Ledgers > Create.
2. Name: Consulting Charges (SEZ) (or specific service name).
3. Group: Direct Expenses or Indirect Expenses, based on the nature of the service.
4. Enable GST: Yes.
5. Set the Nature of Transaction to Purchases Taxable.
6. Specify the GST Rate (e.g., 18% for consulting services).
7. Save the ledger.

c. IGST Ledger

1. Create an IGST Ledger if not already available:
   • Group: Duties & Taxes.
   • Type of Duty: GST.
   • GST Type: IGST.

3. Record the Purchase Entry

1. Go to Gateway of Tally > Vouchers > F9: Purchase.
2. Select the XYZ Services ledger (supplier).
3. Enter the service details:
   • Under Particulars, select Consulting Charges (SEZ).
   • Enter the amount for the service.
   • The system will automatically calculate IGST if applicable.
4. Verify and save the voucher.

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2. Example of Recording Purchase of Services from a Regular Party as SEZ Unit in TallyPrime

1. Scenario

Your SEZ unit procures consultancy services worth ₹1,00,000 from XYZ Services, a Regular company. The service attracts an IGST of 18%.

2. Steps

1. Create Party Ledger:
   • Name: XYZ Services.
   • GSTIN: Supplier’s GSTIN.
   • Registration Type: Regular.
2. Create Expense Ledger:
   • Name: Consulting Charges (SEZ).
   • GST Rate: 18%.
3. Record Purchase:
   • Supplier: XYZ Services.
   • Service: Consulting Charges (SEZ).
   • Amount: ₹1,00,000.
   • GST (IGST): ₹18,000 (auto-calculated).
4. Save the voucher.

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3. Benefits

1. Compliance: Accurately records GST applicable on services purchased.
2. Simplified Accounting: Differentiates taxable and exempt transactions.
3. Detailed Reporting: Enables easy tracking of inter-SEZ purchases in reports.

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4. Conclusion

Purchases of services from Regular companies as an SEZ unit in TallyPrime require meticulous configuration to align with GST norms.

By following the steps above, businesses can ensure accurate transaction recording, compliance with tax laws, and comprehensive reporting for audits and analysis.

This approach minimizes errors and ensures seamless operations in line with regulatory requirements.