Darpan Partner News Letter Edition 4 -...

Get prepared for GSTusing Tally.ERP 9 Release 5

THE TALLY PARTNER NEWSLETTER Issue 04, August 2016

editorial

Tejas GoenkaExecutive Director

Tally Solutions Pvt. Ltd.

Dear Partner,

It gives me great pleasure to bring to you the 4th issue of our Tally Partner Newsletter,

Darpan. It is my first as editor, and there are two very important topics to discuss as we move

forward this year – (1) the imminent onset of GST, and (2) the announcement of Release 5.4 as

another step towards simplifying tax and compliance for the country.

GST is finally in its so called last lap in becoming a reality, and while it could be great news for

all of us, the current draft law that has been circulated could end in disaster for us all. In this

issue, we will be outlining some of the key facts of GST that you should know, and also

I request that you to seriously re-read the article that Dad has drafted and act as responsible

citizens of the country.

In addition to this, Release 5.4 is now out in the market – we have improved the product on

many areas and am looking forward to your continued drive to make this successful. The

importance of taking this to the market cannot be stressed enough, especially during this

time where GST seems imminent. Release 5 is the only product in the market that will

allow you to ensure that all your transactions are correct in the eyes of the law as we get

prepared for the onset of GST. Experience the product and let me know what you think.

Looking forward to hearing back, and looking forward to ending the second quarter

successfully with you!

Regards,

CHIEF MENTOR &

EDITOR

Tejas Goenka

DEPUTY EDITOR

Tushar K Bharati

ADVISORY PANEL

Abhijit Dutta

Joyce Ray

Meenal Lall

Govardhan KG

CREATIVE TEAM

Virupaxayya H

Rahul Sinha

CONTRIBUTORS

Bharat Goenka

Abhijit Dutta

Get prepared for GSTusing Tally.ERP 9 Release 5www.tallysolutions.com

[email protected]

The Tally Partner Newsletter

JUST A MOMENT

ICE BREAKERWhen did you join Tally and what is your role –

2nd November 2015, Sales Manager - Kolkata

Professional snapshot (a brief on your work

experience before Tally)

Worked For - HCL Infosystems Ltd., Kolkata as an

Area Sale Manager s

Ÿ Actively involved in implementing the

distribution parameters across all levels of

the channel and support the sales team in

leveraging sales.

Ÿ Rendered support in the execution, planning

& delivery of results for trade initiatives &

sales activities across Channels

Ÿ I n s t rumenta l in demand p lann ing ,

coordinating and driving the sales strategies

across North and South 24 Paraganas and

Malda for Nokia Devices.

Ÿ Steered efforts in guiding the team of

Sales Officer & Promoter Channel for

enhancement of sales.

Ÿ Accountable for:

§ Demand Planning

§ Moni to r ing and enhanc ing the

performance of team members to

ensure efficiency in Sales and meeting

individual & group targets

What spurred you to become a part of Tally –

Ÿ Firstly, the power of the brand.

Ÿ The love and passion that every customer

has for the product. I remember, in my

previous organization while piloting a

project, we wanted the Channel Partners to

move to a uniquely customized software

platform. However, we faced great amount of

resistance as customers just weren't ready to

move away from Tally.

Ÿ The philosophies and values by with which

Tally administers does its business is simply

unique.

What are you most passionate about in life

and why –

Ÿ I had once accidentally landed up in a

Meditation Program - organized by Art of

Living Foundation. Post attending the

program I felt close to my inner self. Since

then I am working closely with the Art of

Living Foundation and volunteering for their

work across the city. With this I am trying to

spread happiness to various sections of the

society.

In your time in Tally, an experience which has

given you a high (professional) –

Ÿ This was during my initial days of joining at

work. I was visiting a potential customer

with an AP. I was astonished with the kind

of welcome we got from the customer.

Ended up selling 2 Multi User Licenses

and a Single User. Later we also sold him a

Tally Server 9 by aligning the customer to a

Certified Partner.

Your immediate goals –

Ÿ My Immediate goal is to ensure that

execution excellence is implemented across

distribution business in Kolkata. I would also

want to play a crucial part in helping

businesses to have a seamless transition to

GST.

Your message to partners –

Ÿ Exciting times are ahead of us, with GST

round the corner. Let's together work to

deliver great customer experience while

ensuring seamless business transition to

GST with Tally ERP 9.

Kumarjit MazumderAssistant Sales Manager-Kolkata

[email protected]

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03

GST AT A GLANCE Goods & Services Tax


[email protected] 04

AN OPEN LETTER GST - Great or Gruesome

The trust deficit between the Citizens of India and the

Government of India has plummeted to new depths when

one reads the Model GST Law.

In one fell swoop, a swathe of businesses is staring at their death

knell – instead of being the promising vehicle for growth, GST has

the potential to destabilize all that is good.

On the bright side, this is still a draft law – and corrections can be

applied, so that GST indeed becomes the Greatest Simplified Tax

regime, and the biggest economic event of Independent India. It has

all the ingredients to become so. Why then, am I sounding the

danger bells?

The most critical cause of failure of GST will be in the transference

of responsibility and liability of tax remittance to the customers of a

supplier {Section 16(11)( c)}. Basically, the law postulates that if a

particular supplier has failed to comply with the law correctly – by

furnishing the correct returns {Section 27(3)} and/or making the

correct payment {Section 27(2)} – then its' customers cannot avail

the input credit, and if given, it will be reversed.

The origin of this provision lies in the history of tax avoidance

through false representations by a small section of businesses and

the fact that is not feasible for the Government to systematically

contain this problem. With the framing of this law, the Government

hopes that the market will self-weed out the bad eggs – which is

not wrong in theory. What is wrong is not understanding the

cascading consequences of doing this in practice – and the

mayhem it will create. While the effort for driving compliance will

reduce, the consequential effect of businesses shutting down, and

therefore collections going down, have not been treated seriously

enough.

What exactly is the problem?

Let us understand this through visualizing a scenario.

Assume Business A operates on a retained margin in the range of

8-9%

Because it is (say) an SME, it buys without access to credit terms.

So, it has purchased goods worth L50,000, and with GST of 20%, it

has paid L60,000 for the invoice. It now sells this at L55,000, with

an applicable GST of L11,000 – so raises an invoice of L66,000 on

Business B.

Business B is a distributor, operating on a margin of (say) 2%

Now, Business B is concerned that the input credit of L11,000 may

or may not available to it, in case Business A is negligent in its

compliance. Therefore, it refuses to pay the GST amount UNTIL it

can be certain to get the input credit (which is an entire 'return'

cycle away). So, it pays only L55,000 on an invoice valued L66,000.

Now, Business A, in order to 'get' the balance due of L11,000, has to

first finish all compliance requirements, including payment of Tax,

when it has not yet 'collected' the Tax amount!

In contrast, if Business B 'trusts' Business A and DOES pay the Rs.

11,000 – and if, for whatsoever reason (negligence, cash difficulties,

mal-intent), Business A fails to complete the compliance, Business B

will lose not just Rs. 11,000, but in effect, the 'margin' it makes on

10 other such invoices (since it operates on a thin margin of 2%)!

Apart from this, there are going to be enough collateral problems.

For example, when the input credit is denied, will this be formally

treated as a 'business expense' and not be taxed by Income Tax?

Obviously yes. But at what point do I treat this as 'contingent

expense'? Will my Advance Tax payments made on the assumption

of 'possible write back' be accepted? If not, will I be reimbursed for

the cash-flow cost I incurred? How do I report my end-of-quarter

and end-of-year? Will banks fund me? Will insurance cover this

risk? How much more working capital will I require? Will I be

eligible for it?

When the input credit is uncertain, and outside one's span of

control, the correspondent questions which will arise – and

correspondent litigations can only be imagined. The last two-three

questions will kill a large number of businesses (SMEs, Distributors,

Stockists, Industrial Retail, Commodity traders – who either work on

wafer-thin margins, and/or with inadequate cash).

The reasoning of the Government is: people are today colluding

(albeit in small percentages) to fraudulently take input credit when



[email protected] 05

it is not due. Therefore, it is only fair to put this risk back on the

citizen. It also reasons that because this is a small percentage,

which will keep declining due to self-correction by citizens, it is not

a 'great burden' – that is, the 'business risk' is small enough to be

manageable.

The problem is not the 'management of a manifest risk' – the

problem is the side-effects of cash flow, improper accounting, and

reduced ability for people to trade with new suppliers and new

customers – since there is uncertainty about the business outcome.

Is there a solution?

Of course. One of the greatest benefits of GST is that it is built

ground up as a technology-enabled-tax-system.

In the past, it was not feasible for the Government to systematically

mitigate the risk of fraud, since there was no practical human ability

to keep track and trace the culprits – who could/would repeatedly

create phantom organizations, and/or phantom invoices. Against

this history, it is no wonder that the Government wants to control

this menace!

However, GST gives extraordinary traceability. For one, it fully

eliminates the ability to have phantom invoices. That alone, will

massively reduce the problem.

Second, with the near ubiquity of Aadhaar, and the passage of the

Aadhaar Bill, the Government MUST mandate that all GST

registrations are traceable to individuals based on their Aadhaar

identity.

Now, the ability to repeatedly create phantom organizations which

allow credit to be taken without correspondent payment will

rapidly evaporate.

And, of course, the sheer traceability of the individuals, and strong

public actions showcased for deterrence, will NOW become

effective.

Conclusions:

GST has all the ingredients to be Great.

Making it practical and convenient, by removing this one MAJOR

lacuna, will go a long way in its 'welcome embracement' rather than

'resisted embracement'.

Being technology led, it also has all the ingredients to spiral

upwards the trust deficit, rather than spiral downwards.

If all of us, as responsible citizens of India, rally together to help

make it Great, we will all live together in a Greater and Grander

India.

Bharat Goenka

Managing Director

Tally Solutions Pvt. Ltd.


GST - Great or GruesomeAN OPEN LETTER


[email protected]

PARTNER SPEAK The of HEROES GSevenDestined for Tally

What happens when a highly focussed teenager

and an experienced Chartered accountant (both

from business backgrounds) come together to

start their own firm. A recipe guaranteed for

success was the union of Mr. Dinesh Gupta and

Mr. Rajesh Jain. But all was not sundry at the

outset. “We ventured into motivational classes,

assembly of computers, cameras, mobiles and a

whole lot of other stuff”, says Mr. Gupta. “Not only

did they fail but we lost a lot of money also. Then

one fine day (12 years back) Dineshji managed

to come across a hoarding of Tally and he felt

that this could be a domain we could excel in.

We haven’t looked back since”, adds Rajesh.

The Journey

Initially working as a Tally Academy, they soon

ventured into sales of Tally products and

services as GSeven Computers Business Pvt Ltd.

It was an experiment which worked and how.

“Today we have grown to more than 10,000

clients, a team of 60 people and branches in

Gurgaon and Noida in addition to the head

office in Delhi. The fact that Tally fits in so easily

wherever it goes, has allowed us to penetrate

into a host of industries including large

corporates”, says Rajesh. To top it up, Tally

technology is conducive for building solutions

on top of it and we have taken this route very

seriously”, adds Mr Gupta. “Rajesh himself

spends a significant amount of time on TDL

(Tally Definition Language) and most of the add-

ons developed by him are bestsellers on the

Tally Shop. It won’t be wrong to say that Tally is

everything for us. Our day starts and ends with it,

it is our source of knowledge and it has become

our passion as well. And we feel extremely

fortunate that our passion and profession are

aligned”, adds Mr Gupta.

Inspiration

The young Rajesh idolises Bharat Goenka. “His

philosophy and ideas of entrepreneurship are

very unique and special and it is always my

desire to emulate him. I feel lucky to be

mentored by a visionary like him”. Mr. Rajesh

though is inspired by his partner himself. “I have

met a lot of youngsters in my career but have

never come across somebody with his focus and

dedication to his work. There is this brilliance

that I see in whatever he does and given how he

has managed to fight all odds in his life to reach

where he has, hats off to him. I learn from him

every day”, says Mr Gupta.

Yin-Yang & Future

The duo of Chairman & Managing Director

complement each other very well. “He has been

like a friend to me and I have a lot of respect for

him. His business acumen is second to none and

I like the fact that even though he is

experienced he likes to take risks”, says Rajesh of

his partner. “Rajesh is very sound commercially

and he therefore makes my job very simple. I

admire all that he has achieved at his age and

my motive in life is to see him grow”, adds Mr

Gupta. Having experienced enormous amount of

success throughout their association with Tally,

the duo are buoyant about the future. “GST is on

the cards and we expect the same kind of

growth we did during VAT. We are happy to see

Tally getting involved in the preparations early

and we are sure we will see great results”, Rajesh

signs off.

Mr. Dinesh Gupta & Mr. Rajesh JainGSeven Computers Business Pvt. Ltd.

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EXPAND YOUR BUSINESS

Business Processes: Pre-Need Assessment Study

Based in Delhi, Walaiti Ram & Sons is a major player in the iron and

steel segment and have been in business since 1983. They are solely

into the distribution of iron sheets to manufacturing companies. They

deal with around 10 – 12 dealers which includes the much celebrated

Tata Steel.

Walaiti Ram & Sons was first introduced to Tally.ERP 9 in April, 2009.

Ever since then, they have been using the ERP software for all their

billing activities, keeping account of their inventory and maintaining

their books of accounts.

Post Tally.ERP 9 Revised Implementation

Post the detailed study conducted by Tally experts with the able

assistance of Mridu Infosolutions (Tally Partner), there was a huge

makeover in the processes practised at Walaiti Ram & Sons. The

business reaped huge benefits owing to this visit.

Today, the enterprise completes their entire bank reconciliation

process in a few clicks without the necessity of employing an

additional resource to complete the task. The VAT module is another

major relief for the company as one of the most critical tasks of excise

rule 11 invoicing got automated using Tally.ERP 9. One more

interesting outcome of this activity was that the customer got

enlightened that the financial year gets updated automatically in the

software. This saved the effort of creating a new company on the

software each year. They also benefitted from outstanding

management. According to Mr Goyal, it not just keeps them abreast

at all times on the outstanding payments and receivables, it also

improves their reputation as they are now prompt with their

payments.

Walaiti Ram & Sons

Customer TestimonialWe saved time, cost and achieved operational transparency with Tally.ERP 9. My invoicing, banking and

outstanding management has never been smoother. Over and above that, with remote access, I access

my data even while I am traveling. Now I am able to use Tally.ERP 9 to its fullest.

“

Mr. Nitin Goyal, Proprietor, Walaiti Ram & Sons, Delhi

Walaiti Ram & Sons smoothens business

operations with Tally.ERP 9

07



[email protected]

Dear friends, take some time out from your busy schedule and have some fun!

We have put together a few questions on GST, answers to which you all should be aware of. The first person to send in all correct

answers will win a JBL Speaker*. So get going now… fastest finger first!

1. What does GST stand for?

2. Which Centre level taxes are being subsumed into GST?

3. Which State level taxes are being subsumed into GST?

4. What will be the 2 components of GST?

5. What is IGST?

6. What is GSTN?

7. What is GSP?

8. What is GSTC and who will be the members?

Send in your answers against the question numbers to [email protected]. Do mention your full name, phone number and

complete mailing address. The correct answers will be published in the next newsletter under Quiz Time. Happy quizzing!

* For T&C, Click Here

The answers of the last issue and the winner are showcased in the last page.

“A good sales person is someone who has

empathy and an urge to succeed.”

Today let’s look at very common things that

we all know yet sometimes forget to brush

up on.

1. A presentation / demo is as good as what the customer

believes. You can have the best product demonstration in

the world, but if the customer doesn’t believe your claims,

then you don’t have a chance to close the sales. Take time to

engage with the customer to discover their needs.

2. Closing is the most important aspect of the sale. Develop

different techniques based on different customer scenarios.

Plan a closing strategy before going on the call

3. Prospect daily. Set up time aside daily for generating

prospects. We normally leave it to time and miss it while in

other engagements. Make sure you keep dedicated time for it.

Mr. Abhijit Dutta

Head - Certified Partner Business Group

[email protected]

4. Believe in your product and its ability to add value to the

customer. Sales people who honestly believe in their products

are always more successful

5. Probe , Probe & Probe – To understand the Customer’s need.

The better you understand the need of the customer, the better

will be the way you offer a solution to his need through your

product. Offering the right feature and benefit against the right

need is like putting the correct key in the appropriate lock. So

keep probing till you have discovered all the needs of the

customer

6. Talk about the relevant benefit and not the feature with the

customer .

7. Be Punctual: In showing up and following through. This is one

of the biggest reason why most sales are lost; because either

the sales person failed to show up or failed to call back.

More on this in the next issue. Meanwhile, Stay Sharp!

08


Goods & Services Tax (GST)

http://mirror.tallysolutions.com/Downloads/Forms/eDM/JAS16/Darpan_PartnerNewsLetter/Aug16/TC/index.html

Get prepared for GSTusing Tally.ERP 9 Release 5

PHOTO FEATURE

If you wish to share any ideas/suggestions/ feedback or contribute any articles for Darpan, please feel free to

write to us at We will be happy to showcase them post evaluation. [email protected]

www.tallysolutions.com

[email protected]

1. Virat Kohli

2. Switzerland

3. Sarbananda Sonowal

4. Baahubali: The Beginning

5. Brazil

6. Belgium

7. Rajasthan

8. Dr. Raghuram Rajan

Answers for the last issue:

Congratulations!

Mr. Asif KhanAIM Infocom Services Pvt. Ltd.

WinnerWinner

09


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