TallyPrime 4.1 is now live

The introduction of TallyPrime and TallyPrime Edit Log Release 4.1 brings immense joy as they offer the following features:

  • You have the ability to input the MSME Udyam number for a company and its MSME suppliers, alongside the convenient feature to promptly access information regarding outstanding bills to MSME suppliers, ensuring seamless compliance with section 43b(h) of the Income Tax Act.
  • The capability to produce a comprehensive roster of all online sales within a specified return period, aligning with the updates implemented in GSTR-1.

 

MSME

MSMEs serve as the cornerstone of the economy, holding the potential to generate millions of jobs within the nation. They not only propel growth but also play a pivotal role in fostering inclusive development.

Through the latest MSME functionality, both micro, small, and medium enterprises (MSMEs) and their trading partners can ascertain MSME status and monitor outstanding invoices for prompt settlement. Additionally, purchasers dealing with MSMEs can efficiently submit their Form MSME 1 containing comprehensive information on overdue payments to MSMEs. Furthermore, in adherence to section 43b(h) of the Income Tax Act, buyers can swiftly generate a rundown of invoices.

Process of MSME Registration

MSME registration by following steps

  1. Visit Udyam registration portal (https://udyamregistration.gov.in/)
  2. Provide documents such that Adhaar, Personal, Bussiness, Bank Account, Bussiness Activity and Investment details.
  3. Submit the declaration.
  4. Generate OTP
  5. Enter OTP to complete verification  
  6. After verification recieve the registration certificate

 

Benifit of MSME registration

Provide legal recognition and they participate in goverment scheme incentives

Protection against delayed payments which helps in resolving disputes related to payment delays

Registered MSMEs are eligible for priority sector lending, collateral-free loans and credit guarantees

Deparments and Agencies give preferences to registered MSMEs in their procurement processes

Get details of all unpaid bills to MSMEs to arrive at the deductions not allowed as per 43b(h) of income tax act

One of the major benifits enjoyed by entities by registering themselves under MSMED Act is the timely payments of their dues by customers.

Let’s understand more about this provision and the credit limits provides to the customers of MSMEs

Note :-

45 Days credit limit is the maximum time allowed as per provision of the act only if written agreement exists. Otherwise, the time limit is just 15 Days

Late payment consequences

MSMED Act Section 16 “Rate at which Interest payable”
  • Micro and Small Enterprises are entitled to special interest rates on delayed payment of thier dues.
  • Interest on delayed payment U/s 16 , 3 time the bank rate notified by RBI compund monthly.
  • In the current scenario, this would be 6.75% and in case of delayed payment, it would be 20.25% which will be compound monthly.

MSME Form 1

This form is to be filled by the  MSME Enterprises registered under ROC (Registrar of Companies)
  • This Form is to be filled out every six months. 31st Oct for April to September and 30th April for October to March.
  • This form aims to gather the information about MSME entities and invoices experiencing payment delays.
  • Details of the bills that were due for more than 45 days (cleared or uncleared) should be mentioned under this Form.
  • Bills of only Micro and Small enterprises should be considered for the MSME form 1 creation.
  • Fine of upto Rs. 3 Lakhs and/or a 6-months imprisonment may be imposed for failure to submit or inaccuracies.

TallyPrime 4.1 streamlines e-commerce sales for GSTR-1.

The inclusion of new tables (14A and 14B) in the GSTR-1 form, starting January 1, 2024, signifies a significant change for MSMEs in reporting e-commerce sales, aligning with government efforts to enhance transparency and tracking of such transactions through GSTN. Given the high transaction volume and significant sales returns in e-commerce, this adjustment is particularly noteworthy.

Changes have been implemented in GSTR-1 regarding the reporting of online sales for businesses utilizing e-commerce platforms like Amazon, Myntra, and Flipkart.

The implementation of Tables 14A and 14B in GSTR-1 enables the owner to streamline reporting of e-commerce sales, presenting net sales figures post returns in a structured format. Moreover, the e-commerce reporting functionality in TallyPrime Release 4.1 automates this process, substantially lessening Priya’s administrative burden and enabling her to concentrate on business expansion rather than being overwhelmed by compliance and accounting responsibilities.

e-Commerce report in GSTR-1 

TallyPrime Release 4.1’s e-commerce reporting feature directly tackles this new reporting demand, aiming to streamline compliance procedures for e-commerce businesses by furnishing a comprehensive report of net sales categorized by e-commerce operator.

This functionality assists not just in adhering to the updated GSTN mandates but also in navigating the intricacies of e-commerce transactions, particularly in managing sales returns, a challenge more common in this sector compared to traditional retail outlets.

Conclusion

The updated reporting guidelines for e-commerce sales in GSTR-1, coupled with the introduction of TallyPrime Release 4.1’s e-commerce reporting feature, mark a substantial advancement in simplifying GST compliance for MSMEs involved in online sales. This progress aids in handling the considerable transaction volume inherent to e-commerce and in navigating the challenges posed by sales returns, thereby promoting smoother business operations and compliance for these enterprises.

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