Key Changes in Tally Prime in next F.Y.

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Sanchit (Querist)
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02 March 2022 Dear Sir,
Our Company's turnover (Pvt Ltd Co.) has crossed more than 18 crore in this financial year, kindly assist me what changes should we have to adopt in next F.Y. with regard to Accounts, Taxation & in Tally Prime (Books).

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 When your company's turnover crosses 18 crore in a financial year, it triggers certain compliance requirements and changes in accounting practices. Here’s a comprehensive guide on what changes you should adopt in the next financial year with regard to Accounts, Taxation, and in Tally Prime (Books):

### Accounts:

1. **Financial Reporting Standards**:
- Ensure compliance with Indian Accounting Standards (Ind AS) if applicable to your company. Ind AS are converged with International Financial Reporting Standards (IFRS) and apply to certain categories of companies based on turnover and other criteria.

2. **Disclosure Requirements**:
- With increased turnover, there might be additional disclosure requirements in the financial statements. Ensure thorough disclosures as per the Companies Act and applicable accounting standards.

3. **Internal Controls**:
- Strengthen internal controls and processes to manage higher transaction volumes and increased financial activities.

### Taxation:

1. **GST Compliance**:
- Transition to monthly filing of GSTR-1, GSTR-3B, and other GST returns if your turnover exceeds 5 crore in the preceding financial year.

2. **Income Tax**:
- Prepare for tax audits under Section 44AB if turnover exceeds the specified threshold. Ensure timely filing of income tax returns (ITR) and compliance with tax payment obligations.

3. **Transfer Pricing**:
- If applicable (for transactions with associated enterprises), ensure compliance with transfer pricing regulations and maintain proper documentation.

4. **Tax Deducted at Source (TDS)**:
- Comply with TDS provisions for payments made to vendors and contractors. Ensure timely deposit and filing of TDS returns.

### Tally Prime (Books):

1. **Upgradation**:
- Ensure your Tally Prime software is updated to the latest version to comply with any changes in accounting standards and tax regulations.

2. **Customization**:
- Customize your Tally Prime setup to accommodate higher transaction volumes and complex reporting requirements.

3. **Integration**:
- Integrate Tally Prime with other systems within your organization for seamless data flow and reporting.

4. **Training**:
- Provide training to your accounting team on advanced features of Tally Prime and new reporting requirements.

### Additional Considerations:

1. **Compliance Calendar**:
- Maintain a compliance calendar to track due dates for various statutory filings and payments.

2. **Audit Requirements**:
- Prepare for statutory audits under the Companies Act and other applicable laws.

3. **Legal and Regulatory Changes**:
- Stay updated with any changes in accounting standards, tax laws, and regulatory requirements that may impact your business.

4. **Financial Planning**:
- Review and revise financial plans and budgets considering the increased turnover and compliance requirements.

### Conclusion:

Crossing the 18 crore turnover mark signifies a significant milestone for your company, but it also comes with enhanced responsibilities in terms of compliance and reporting. It’s crucial to stay proactive, seek guidance from professionals when necessary, and ensure that your systems, processes, and personnel are equipped to handle the increased scale of operations and compliance requirements effectively.