This
check list is Applicable for only up to 5.1.3 After migrating data to Release
5.0, users can either-
Configure masters for VAT and start passing transactions
Configure masters for VAT and start passing transactions
OR
Resolve exceptions in
existing transactions and make relevant configurations in the process. Once
exceptions are cleared, transactions can be passed.
To configure masters for VAT and start passing
transactions, follow the steps mentioned below-
1. Company Configuration
Go to F11:
Features>F3: Statutory & Taxation
Make Set/Alter
VAT Details as Yes.
Ensure that the State and VAT TIN are correct.
Enable Set/Alter VAT rate/inventory details to configure a common VAT rate at the company level. The VAT rate set here will be applicable to all the items in the company. However, this rate can be overridden at group/item/ledger level.
Specify the VAT rate.
The VAT rate details screen appears as shown below-
If CST is applicable, press F12 and make Enable CST rate details as Yes
By default, CST rate (against Form C) is shown as 2%. This rate can be modified when the CST rate changes. The CST rate appears as shown below-
Note: VAT rates can be configured at company, stock group, stock item and ledger level.
Item configuration
From Release 5.1, Tax rate setup tool has been provided for quick and easy setup of VAT rates. Click here for the detailed article on Tax rate setup.
Release 5 users can follow the below mentioned steps to configure VAT rates at item level or stock group level.
Go to Gateway of Tally>Inventory info>Stock items>Alter.
Ensure that VAT applicable configuration is set to Applicable.
.
.
To configure VAT rate specific to the item, make Set/alter VAT details as Yes and specify the tax rate.
Note:
VAT rates can be configured at stock group level also, which will be applicable to all the stock items under the group. For detailed steps, click here
Party configuration
Specify the country, state and VAT details in the Party ledgers
Go to Accounts info>Ledgers>Alter.
Specify the state and country of the party.
Make Set/Alter VAT details as Yes.
Select the Type of dealer and specify the TIN/Sales Tax No.
4. Purchase &Sales ledger configuration.
Make Is VAT/CST applicable as Applicable.
To set a specific VAT rate for the purchase/sales ledger, make Set/alter VAT details as Yes. Make Allow tax rate/item details as Yes and specify the tax rate.
Note: If VAT rates are specified in items/stock groups, there is no need to specify any tax rate in purchase/sales ledger.
5. Duty Ledger configuration
Select the Type of duty as VAT.
In Percentage of calculation, specify the percentage of duty calculation only if different ledgers are created for different VAT rates
If this ledger is to be used as a common duty ledger for all VAT rates, leave the field blank.
The completed duty ledger alteration screen appears as shown below-
To learn how to configure CST duty ledger, click here
6. Voucher entry
You are ready to pass VAT transactions in Tally.ERP 9 Release 5
B. To resolve exceptions in existing transactions first and start passing transactions
Go to Display>Statutory reports>VAT. Select the VAT form.
Transactions included in VAT calculation appear as Included transactions
Transactions excluded from VAT calculation appear as Excluded transactions
Transactions which are uncertain about being included in VAT calculation appear as Uncertain transactions.
Drill down from Uncertain transactions to view the report of transactions which have exceptions.
Drill down from each exception and make the relevant configurations.
When all the uncertain transactions are cleared, user can start passing transactions
Note:This is applicable for users migrating to releases prior to Release 5.2. From Release 5.2, VAT rates are auto migrated from Release 4.9x to the respective stock items. For more details, click here
