Share purchase sale expenses

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Vaneet Monga (Querist)
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09 February 2022 Dear Sir,

during purchased and sale of stock we have paid some expenses for eg. brokerage, stamp duty, service tax etc please suggest in which group i crate the ledger all expenses in tally
Our main business of marbles cut pieces.

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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11 July 2024 In Tally ERP 9, you can create ledger groups to organize your expenses related to brokerage, stamp duty, service tax, etc., under appropriate heads. Here’s a suggested way to organize these expenses in Tally:

### Ledger Groups for Expenses:

1. **Direct Expenses Group**:
- Direct expenses are those directly related to the production or purchase of goods. Since you're in the business of marbles cut pieces, expenses directly related to purchasing stock can be categorized under this group.
- Examples: Brokerage on purchase, stamp duty on purchase, transportation charges related to procurement, etc.

2. **Indirect Expenses Group**:
- Indirect expenses are those not directly related to production but are necessary for running the business. This group can include expenses incurred during the sales process or general administrative expenses.
- Examples: Service tax (if applicable on expenses), legal fees, office expenses related to procurement, etc.

### Steps to Create Ledger Groups in Tally:

1. **Direct Expenses**:
- Go to Gateway of Tally > Accounts Info > Ledger > Create.
- Enter the name of the ledger (e.g., Brokerage on Purchase).
- Select under group: Direct Expenses (you may need to create this group if it doesn’t exist).

2. **Indirect Expenses**:
- Similarly, create ledgers for other expenses under Indirect Expenses group.
- Go to Gateway of Tally > Accounts Info > Ledger > Create.
- Enter the name of the ledger (e.g., Service Tax on Expenses).
- Select under group: Indirect Expenses.

### Additional Tips:

- **Sub-Groups**: Depending on the complexity of your expense categories, you can create sub-groups under Direct Expenses and Indirect Expenses to further categorize expenses. For example, under Direct Expenses, you could have sub-groups like Purchase Expenses, Freight & Transport, etc.

- **GST Compliance**: Ensure that if you are liable for GST (Goods and Services Tax), expenses subject to GST are correctly categorized and accounted for under GST-compliant groups.

- **Consultation**: It’s recommended to consult with your accountant or tax advisor to ensure that the ledger groups align with your specific business requirements and comply with relevant accounting and taxation laws.

By organizing your expenses in Tally according to these groups, you can effectively track and manage your business expenses related to purchasing and selling stock in your marble cut pieces business.