We all know that to convert tally data from 7.2 to 8.1 Tally is providing a data migration utility with Tally 8.1. You can get more details about migrating Data in my previous post How to migrate Data from Tally 7.2 to Tally 8.1. or Get the FAQ's on data migration. But what if you have data in Tally 4.5 and you want to convert it to Tally 7.2 or 8.1. For this a free utility is available on Tally's Site which would convert data from Tally 4.5 to Tally 7.2 You can get this utility Here .

Simply unzip the file. You would find three files. Copy these files to directory of Tally 4.5.
Now run the utility and convert the companies one by one. After converting all companies you would see different folders are created . Copy these folders to the directory where your Tally 7.2 is installed. Open Tally and rewrite the companies you want to open in Tally7.2. Wollah !!! the process is complete.

Before migrating data make sure to take backups of files. so that in case of data corruption you can recover it.

Tally 7.2 and Tally 8.1 are VAT compliant versions. You can generate state specific VAT returns. VAT sales and Purchase annextures can be printed automatically just by entering data in correct format and defining correct ledgers classes. If you have to prepare VAT returns through Tally then company configuration has to be changed.
In case of Tally 7.2 just modify company details and select use for Indian VAT Yes.
In case of Tally 8.1 go to F11 and alter statutory Features in F3. Select VAT to Yes.
Keep in mind to select State from List in Address section. The statutory master would be selected for that state only.

Make separate ledgers for sales and purchase for separate VAT rate. For example if you are dealing in 4% and 12% VAT rate items then you have to make ledgers for Sales 4% and Sales 12% under sales and Purchase 4% and purchase 12% under Purchase account. Correct VAT/Tax Class has to mentioned while creating those ledgers.

Now make ledger for input and output VAT ledgers for collection of sales VAT and Purchase VAT. These should be separate for different VAT rate. i.e. input VAT 4% and input VAT 12% in the same way make ledgers for output VAT for purchase VAT. At this moment you have to assign proper VAT/Tax class for these ledger.
Now make entries by entering vouchers of sales and purchase. and you would find proper figures are appearing in respective forms. You would also find proper VAT computation in VAT computation screen. You can check it by going to Gateway of Tally >Display> Statutory Reports>Vat Classification > VAT Computation

If some forms are not shown then cross check the VAT class allocation for that ledger. Tally has tried to rectified all VAT related problems but still many states VAT returns are facing problems.
For more help regarding VAT knowledge you can see the full white paper available on Tally's site on VAT, or you can find basics of VAT Here.
For any suggestion or your problem related to VAT leave a comment here.

Here is the list of some FAQ's on licensing. These FAQ's are also available on Tally's site in PDF format. But for users convenience here they are in HTML format.

Q 1: What is Tally 8.1 Silver/Single user licensing?
Answer:
Tally 8.1 Silver/Single-user Licensing allows installation of Tally on a SINGLE
computer, with an option of activating it Online or Offline.
You can use the same Tally 8.1 Silver/Single user license on another computer, by
surrendering the license activated on the first computer and reactivating it on the
other.
An Offline user can take the request file generated by Tally 8.1, to a computer
with Internet connectivity and activate the license.

Q 2: What is Tally 8.1 Gold/Multi-user licensing?
Answer:
Tally 8.1 Gold/Multi-user Licensing allows installation of Tally 8.1 on ANY
NUMBER of computers connected through a local area network (LAN). The
Activation process is similar to that of Single-User Licensing.
Once a Multi-User license is successfully installed on a computer designated as
the License Server, you can start Tally 8.1 with Windows running as a service in
the background.
The computers designated as License clients can install Tally 8.1, and set the
parameter “TallyLicenseServer = Servername: Port Number” in the Tally.ini
configuration file.

Q 3: How do I obtain a License/Tally Serial Number in Tally 8.1?
Answer:
There are two ways of obtaining the License/ Tally Sl. No.
a) Online (for computers with internet connection)
b) Offline (for computers without internet connection)
a. For Online License Activation
1) Connect to Internet
2) Open Tally.

The Activation Form appears as shown below.


3) Enter the Serial, Key and E-mail.
4) Accept the screen
The Tally SI. NO. displays on the top right corner of the screen.
b. For Offline License Activation
On starting Tally, you will find displayed an Activation Form dialog box .
1. Press Esc or Ctrl+Q to quit the Activation Form, since the machine does not
have an Internet connection.
2. Go to F12: Configure > Licensing > Offline. The Offline Activation Form
displays three fields Serial, Key and Email.
3. Key-in the correct Serial, Key and Email and press Enter.
A message displays the successful generation of the tally_req.lic file.
4. Copy the tally_req.lic file from the Tally folder of your computer on a floppy or
CD and take it to any computer with Internet connectivity and Tally installed in it.
5. Copy the tally_req.lic file from Floppy or CD to the Tally folder on the computer
with the internet connection.
6. Start Tally and go to F12: Configure > Licensing > Offline.
7. Click on the Send External Request option to send a request to the Tally
Internet Services server.
A new file tally_resp.lic, will be generated and saved in the Tally folder on the computer
with internet connection.
8. Copy the new tally_resp.lic file on a floppy or CD, from the Internet connected
computer and paste the tally_resp.lic file into the Tally folder of your computer.

9. Start Tally and you will see the following screen confirming the license activation.


Q 4: I have a Tally Multi-user edition. When I Go to Gateway of Tally > F12:
Configure > Licensing, I do not see the options ‘Online’ and ‘Offline’. Why?
Answer:
The Licensing menu on the License server in a multi-user licensing system computer
displays all options available to a single-user.
However, the options Online and Offline are not available on the License client
computers.

Q 5: What is List Add-Ons?
Answer:
List Add-Ons provides the list of additional modules available in Tally. You can
purchase these modules through the TVP (Tally Value Pack).

Q 6: Is activation of license a one-time procedure?
Answer:
License activation is a one-time process. The license has to be validated within 45
days of activation. Tally prompts you to validate the license before the expiry period.
The procedure for validating Tally is the same for both single-user and multi-user
edition.

Q 7: How do I carry out an Online validation of the license?
Answer:
On expiry of the license activation period, Tally displays the message ‘Your License
is about to expire! Please re-activate’. If you have an Internet connection, connect
to the Internet and validate the license manually using the following path:
Go to Gateway of Tally > F12: Configure > Licensing > Online > Update
Important: This is a one-time process. If you do not validate within the given time,
Tally switches to Educational mode.

Q 8: How do I carry out an Offline validation of the license?
Answer:
On expiry of the license activation period, Tally displays the message ‘Your
License is about to expire! Please re-activate’. If you are not connected to the
Internet, you can validate the license on any computer with an Internet connection.
Follow the Instructions mentioned in the answer to Question no. 3, section b.
Validate the license manually on your computer using the following path:
Go to Gateway of Tally > F12: Configure > Licensing > Offline > Update
License.
Important: This is a one-time process. If you do not validate within the time period,
Tally will switch to Educational mode.

Q 9: What does Surrendering Tally License mean?
Answer:
In order to install Tally 8.1 on another computer, you have to surrender the license
activated on the first computer.
Go to F12: Configure > Licensing > Online/Offline.
Important: If you desire to format your hard disk, it is recommended to surrender
the Tally 8.1 license and reactivate it again. Else, Tally will switch to Educational
mode.
The procedure for surrendering the license is the same for both single-user and
multi-user edition.
a. Surrendering License – Online Users
1) Go to F12: Configure > Licensing > Online > Surrender

The surrender License request is sent to the Tally Internet Services Server. Once it
gets updated, the license file in the Tally folder is deleted.
Tally functions in Educational mode after surrendering of license and you can now
activate the same license on a different computer.
b. Surrendering license - Offline Users
1. Go to F12: Configure > Licensing > Offline > Surrender
2. Press Enter to proceed
A message displays ‘Offline Surrender Request tally_req.lic file is successfully
generated’.
3. Copy the tally_req.lic file from the Tally folder on a floppy or CD and take it to
any computer with Internet connectivity that has Tally installed in it.
4. Copy the tally_req.lic file from the Floppy or CD to the Tally folder on the
computer with internet connection
5. Start Tally and go to F12: Configure > Licensing > Offline
6. Click on the Send External Request option to send the surrender request to
Tally Internet Services server.
7. Your Tally License is successfully surrendered and is ready for use on another
computer.

Q 10: My Computer is going to be formatted what should i do?
Answer:

Before formatting the system surrender the Tally first either online or offline as described in Q 9. After reformatting install Tally and activate the license again.

Q 11: I have to replace my computer what should i do can i activate it on another computer simultaneously?
Answer:
No. The license can be activated only on one computer. In case of change of machine first Tally should be surrendered and then activated on new machine.

Q 12: My computer is no longer operational and Tally is not surrendered What should i do?
Answer:
You have to inform Tally solutions by email at support@tallysolutions.com with your serial no. and registration details. It would be reset within 24 hrs. Alternatively call Tally support on toll free numbers.

If still some queries are left then refer to my earlier Post on Why Tally turns educational
I hope this thing would help you a lot any other queries are welcomed.

One of my reader Hiren Shah gave me a link to his poem on Tally in his comments Unfortunately his link was not complete on my comment page. He has written many poems i think but his tally poem is interesting for me. Here are few lines from his poem.

From Mumbai to Kolkatta, from Chennai to Delhi
In computerized financial accounting, there is no match for Tally

If you want to concentrate on your core-competence dynamically
For taking away administrative headaches off your back,
there is nothing better than Tally

"Accounts being the language of business", many businessmen can suffer fatally
Because of lack of knowledge of accounts on Tally

When the data on screen has to be monitored daily
No software provides more flexibility than Tally

Whether the reports have to be presented midway or annually
They are absolutely thorough and correct in Tally

Magazines only talk about finance education for children
which can never be achieved fully
Without an excellent enabler like tally

The full poem is here .
One thing i like about his blogs regarding making your passion your profession. You can visit his blogs on Make your passion your profession and Stray Thoughts
Thanks Hiren for your comment and poem. We all are inspired.

Called by Amit Agarwal on Coffee some 10 odd bloggers around Delhi came and had a small but inspiring citchat. Fortunately i was also a part of this meeting. All were from diverse fields and were budding bloggers. Tools, promotion, sites, future, earning, tricks, celebrities and latest buzz of blogging was discussed. It was my first meeting of this kind and would be in my memories for a long time.

People and there interesting blogs are here in the list.

1. Mr. Amit Agarwal http://labnol.blogspot.com

2. Ms. Ritu http://unobvious.blogspot.com/

2. Mr. Raminder Singh http://raminderbox.blogspot.com

3. Mr. Vineet Jain http://cavineet.blogspot.com

4. Mr. Siddhartha http://boledil.blogspot.com

5. Mr. Ajay Tripathi

6. Mr. Rohit Khurana http://rohitkhurana.blogspot.com

7. Mr. Shailendra Yadav http://apnitally.blogspot.com

8. Mr. Abhishek Bhatnagar http://abhishekbhatnagars.blogspot.com

9. Mr. Rohit Malik http://rohitsahib.blogspot.com www.delhievents.com

10. Mr. Cherian Samuel
11. Brijesh Kumar from NIC

Thanks buddies for your participation. Thanks Amit.

Coming across some answers in Yahoo Answers regarding Tally This single questions has come up so many times. I need crack for Tally 8.1 Please help. I some times think why people are looking for cracks of Tally software? I am not becoming idealistic while commenting this but there are few things which users of Tally either don't know or they just want to give crack a try.
We all are using pirated softwares. How much hard we try to avoid it but the truth is that we have to use them, reasons may be different for different users.
While using pirated software one reason given is that we can't pay the price or we are not using it for commercial purpose. Means we are not earning anything out of that software, so we think why to pay and try for pirated one. After all who would reject free software if available. One more reason given for using pirated software is that we want to evaluate a software before buying and some times the time given for evaluation is not enough for buying decision.

But all these reasons are not good enough to find crack of Tally. You want Tally for two reasons.
Either you want to maintain your business accounts in it or you want to learn it or evaluate it. Lets take First reason first, You want to use it for business accounting. Lets examine both cases i.e. you use pirated version or You use original version. If you use pirated version then most suitable version would be 5.4 which is widely used by pirated users. Some more serious users use 4.5 as it is more trouble free and stable version.Using this version would not give you full solutions for your financial needs. If you want to be satisfied with few features only then it's OK go for it. If you are using latest cracks like of 6.3 or 7.2 then One problem would always be there. You would need constant updates which would not be available to you. This happens because the pirated version is available for only one release. New features are added for tally in newer versions and unfortunately we cant get updated pirated cracks for Tally. In this situation bigger the business bigger is the accounting headache and bigger is the risk of lose of financial data.

If you are betting you business information on pirated Tally then the value of that financial information should not be greater then 10,000/- otherwise you are not a wise businessman.
In the second case if you are using original software then you get updates as well as many help channels which are provided by company and in case of any mishapping you can save your day. You would get complete solution for your financial needs e.g. for accounting, inventory, VAT, Service Tax, TDS filing etc.
So evaluating these options i think you need no pirated Tally. Tally software saves you lots of money. In fact you earn a lot after benefiting from license version and you would loose a lot without license.

Coming on Second reason: You may need Crack for Tally because either you want learn it or you want to evaluate it. In either case you get latest Tally software with latest release and run it in educational mode. All features which you want to learn or evaluate are available in educational mode. So you need no pirated version. You can spend your whole life in learning the features of Tally.
But still if you want to use Internet for crack of tally then be cautious while downloading. Some great programmers on Internet provide you exact match in just first search. Normally these sites give you an link to exact exe file name which you are looking for download. But pay attention to file size and file name. This can be a potential virus for your computer. Every tally file should be greater then 5 MB in size.
If still you are looking for cracks then refer this Article on downloading cracks before downloading. Rest depends on you.