Meaning of Dealers in Tally Accounting
What is a dealer, And how many types of dealers are there in Tally? Friends, if you also think that dealer and distributor are one, then this is absolutely wrong. The dealer and distributor can be any one person who acts as a middle man in the finance system. But these two are different. Any dealer has contact with the end customer of the product. dealers are always associated with the financial process. Dealer is the last person who buys or saves goods for himself or any other people. In simple words, the definition of dealers is like a broker who sells or buy goods for his customers.
Dealers are those people on whom the entire market depends. Because they are the last person to sell or purchase any item. Dealers provide investment services to any investor for them. In today’s time, liquidity is created in the markets only through the dealer. Which help to maintain any market for a long time.
Understanding Dealers types in tally
Dealers means a person or entity who is involved in the activities of purchasing goods from his account. And stock and sell that purchased goods. Friends, if I say in simple words, then dealers are called the person or entity who does the trading of a particular product. Any dealers have an account on which they themselves do commercial trading in the form of regular business. The dealer is the mediator between the distributor of the goods and the consumer who buys the goods from the distributor and sells it to the consumer. Every dealer has to treat his customers well to retain his customers.
What is the distribution process in Business
Distribution process is the process in which any company makes its goods or services available to the visiting customers. The products of any company reach a customer in different ways like: – Store, Ecommerce website, reach through more than one retailer or Tally marketer. Many mediators are involved in this system who work to reach any product to the end consumer. And only two mediators associated with this system are called dealer or distributor.
What are the Types of dealers in tally Accounting
There are mainly 4 types of dealers in any business, which are kept separately on the basis of their capacity.
1. Unregistered Dealers: – These are those dealers whose annual turnover is less than 40 lakhs. They do not need to take GST for their business. And the government also does not have to pay GST.
2. Composition Dealers: – In this category come those dealers whose annual turn-over is more than 40 lakhs but less than 1.5 crores. It is mandatory for Composition Dealers to collect GST. These dealers can buy goods from both intrastate or interstate, but can sell only in intrastate. When Composition Dealers sell any goods, they cannot charge GST on that bill. He cannot give any type of tax invoice, he can only give supply bill.
3. Regular Dealers (RD) dealer:- In this category those dealers are taken whose annual turn-over is more than 1.5 crores. It is mandatory for this type of dealer to take (GST) Goods and service tax. These dealers can also buy goods in other state and can also sell goods in other state. These dealers can also collect tax on sales bill and can also give tax invoice. They have to make monthly GST payment.If the regular dealer’s turn-over is less than 1.5 crores then he will have to pay GSTR1 quarterly. and if the regular dealer’s turn-over is more than 1.5 crores then he has to file monthly GSTR1. These are a type of tax liability which we have to pay to the government.
4. Consumer: – This is such a type of customer who sells or buys direct goods, they do not have any shop or office. If they buy or sell goods occasionally or just one thing, then this category of people are called consumer dealers.
What is ITC in Tally Accounting?
The regular place where he pays his tax. The regular dealer gets some exemption on that tax, it is known as ITC. You can get ITC from these places.
1. Goods;- If you have purchased goods from anywhere.
2. Expepses: – You can get ITC on your company’s expenses by paying them bills.
3. Fixed Assets :- ITC can be availed on fixed assets also.
Tax invoice for all dealers
1. If the dealer is Unregistered Dealers then there is neither GST number nor CGST or SGST in the bill.
2. If there is a composition dealer then there will be a GST number but there will be no GST.
3. If there is a regular dealer’s bill, then the gst number will also be there and cgst and sgst are also attached.
All dealers have the same job but they have been segregated on the basis of their capacity. These are very important to maintain the market of any business. Their influence plays a great role in decelerating and increasing the market.