CESS (KFC) in Marg ERP Software

Overview of CESS in Kerala

From which Date KFC is Liable to be Paid?

What is the Period for which KFC is Levied

Points to Remember

Process of Kerala Flood CESS (KFC) in Marg ERP Software

OVERVIEW OF CESS IN KERALA

The state of Kerala suffered heavily in the month of August 2018 due to unusually high rains resulting in severe flood.

The only solution to rebuild the state is by generating an additional revenue by levying an additional CESS on the supply of goods and services.

So, the Kerala government levied a cess called the Kerala Flood Cess (KFC) for two years in order to collect the funds for the reconstruction, rehabilitation and compensation requirements.

FROM WHICH DATE KFC IS LIABLE TO BE PAID?

The Kerala Flood Cess (KFC) will be levied from 1st June 2019 at 1% cess i.e. all the intra-state (within Kerala) supplies of goods and services made by registered person to un-registered persons will be subjected to KFC.

WHAT IS THE PERIOD FOR WHICH KFC IS LEVIED

The KFC will be levied for a period of 2 years and is effective from 1st June 2019.

POINTS TO REMEMBER

The Rate of cess to be charged on the Taxable Value of Supply and not on GST amount.

Rate @ 1% on goods having GST rate – 12%/18%/28%

Rate @ 1% on Services having GST rate –5%/ 12%/18%/28%

Rate @ .25% on goods having GST rate – 3% (gold & silver)

Cess will not be charged for goods having GST rate of 5% or below.

Applicable for all intrastate supplies only i.e. not for Inter State supplies.

Applicable for B2C supplies only i.e. to unregistered person.

It should be shown separately in the invoice.

Example

PROCESS OF KERALA FLOOD CESS (KFC) IN MARG ERP SOFTWARE

• Firstly, go to Masters>>Marg Setups>>Control Room.

• A 'Control Room' window will appear in which the user will select 'Search in All' option.

• Search 'Add TOT' .

•  Click on 'Accept'.

• A 'ADD TOT' window will appear with different options as mentioned below:

1. Additional TAX (TOT)  Set this option 'I'.

2. Calculation: Select 'Default' here.

3. Charge on: Select 'Taxable Sales' in this option.

4. GST Change on Additional GST: Set this option to 'Y'.

5. % on Local GST (Sales Group=Local): Mention '1' in this field as cess of 1% is to be charged on local sales.

6. Charge on B-Both R-Registered U-Unregistered: As for now 1% Kerela flood Cess (KFC) is to be charged on unregistered customers of local then select 'U'.

7. Charge on Y-Bill N-Item E-Excl/I- Incl items: 1% cess will be charged on the items whose tax will be 12%, 18% and 28%. So, set this option to 'N'-Item wise.

8. Calculate on A-Total/ B-Less Tax on GST Paid Item: The items whose tax will be 12%, 18%, 28% then 1% cess will be applied on them. So, set this option to 'A'.

• Press 'ESC' key and click on 'Yes' to save the changes.

• Now, the user will crate a Sale Bill.

• Go to Transactions>>Sale>>Bill.

• A 'Sale Entry' window will appear in which the user will press 'Enter'.

A 'Ledgers' window will get displayed.

• Select the ledger i.e. Ahuja Store.

• Select the Item i.e. Sunsilk Shampoo.

• Select the Batch i.e. TES001 .Press 'Enter'.

• Enter the Quantity i.e. 1 .Press 'Enter' key.

Total Value=100

1% of 100 is 1

So, Value= 101

Now, 18% of 101=1.18 + 1 % CESS = 19.18

• Press 'End' key to Save the Bill.

Now, the user will view its Accounts Posting for which click on 'Sales Book' from the main window of the software.

• A 'Modify' window will appear in which the user will press 'Enter' key in order to view the accounts posting.

• A 'Sales Book As On' window will appear in which the user will select the Bill of whose accounts posting needs to be viewed and then press 'F8' function key.

• Fig. 1.1 Process to View Accounts Posting in Marg ERP Software

• Now, go to Reports>>Management Report>>Utilities>>Multi Editing>>Item Master Multi Multi-Editing.

• An 'Item Master Multi Editing' window will appear in which the user will select 'Yes' for viewing More Options.

• A 'More Options for Item Master Multi Editing' window will appear with different options:

• In 'Select Hsn/Sac' Set this option 'Yes'.

•  A 'HSN/SAC' window will appear in which the user will select the HSN.

•  Suppose, 12345436.

• The user will keep pressing 'Enter' key.

• Then Click on 'Accept'.

• The user can view all the items with that HSN Code will appear on the screen.

• Press 'Enter' .

•  Suppose, select Sunsilk Shampoo.

• Then a pop up will appear with 2 options i.e. All Items & Selected Items.
• Suppose, select 'All Items'.

• An 'Item Master Multi Editing' window will appear.

• In 'Turnover Tax Applicable' Set 'Yes'.

• The user will keep pressing 'Enter'.

• Then type 'Sure'.

• Now, the software will apply 1% tax on all the items as displayed below: