To record purchase and sale of goods taxable at 5% and 13.5% VAT rates, use the VAT/Tax classifications - Purchases @ 5%, Purchases @ 13.5%, Purchases @ 13.5% (JobWork), Purchases - Capital Goods @ 5%, Purchases - Capital Goods @ 13.5%, Sales @ 5%, Sales @ 13.5% and Sales - Works Contract @ 13.5%.
Purchase Entries
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase
Purchases @ 5% and 13.5%
In the purchase invoice press F12: Configure and set Use Common Ledger A/c for Item Allocation to No.
Select the party ledger in Party's A/c Name field.
Select Stock item taxable at 5%. Enter the quantity and rate. In Accounting Allocation screen, select Purchase ledger grouped under Purchase Accounts with VAT/Tax class - Purchases @ 5%. The VAT/Tax class appears as Purchases @ 5%.
Select Stock item taxable at 13.5%. Enter the quantity and rate. In Accounting Allocation screen, select Purchase ledger grouped under Purchase Accounts with VAT/Tax class - Purchases @ 13.5%. The VAT/Tax class appears as Purchases @ 13.5%.
Select Input VAT ledger grouped under Duties & Taxes, Type of Duty/Tax as VAT and VAT Sub Type as Input VAT with VAT/Tax class - Input VAT @ 5% andInput VAT @ 13.5%.
Purchase of Capital Goods @ 5%
In Voucher mode,
Debit: Machinery - I ledger (grouped under Fixed Asset with VAT/Tax class - Purchases - Capital Goods @ 5%)
Debit: Input VAT - CG @ 5% ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT, VAT Sub Type as Input VAT and the VAT/Tax class - Purchases - Capital Goods @ 5%)
Credit: Party Ledger
Purchase of Capital Goods @ 13.5%
In Voucher mode,
Debit: Machinery - II ledger (grouped under Fixed Asset with VAT/Tax class - Purchases - Capital Goods @ 13.5%)
Debit: Input VAT - CG @ 13.5% ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT, VAT Sub Type as Input VAT and the VAT/Tax class - Purchases - Capital Goods @ 13.5%)
Credit: Party Ledger.
Purchase - Job Work @ 13.5%
In purchase invoice select the purchase ledger with the VAT/Tax class - Purchases @ 13.5% (JobWork). On selecting the job work and specifying the amount, the Deduction Claimed for Tax Calculation screen will be displayed. In the Deduction Claimed for Tax Calculation screen, the percentage of deduction or the amount has to be specified and the taxable value will be automatically calculated and displayed.
Select the Input VAT ledger with the VAT/Tax class - Input VAT @ 13.5% - (JobWork).
Sales Entries
Go to Gateway of Tally > Accounting Vouchers > F8: Sales
Sales @ 5% and 13.5%
In the purchase invoice press F12: Configure and set Use Common Ledger A/c for Item Allocation to No.
Select the party ledger in Party's A/c Name field.
Select Stock item taxable at 5%. Enter the quantity and rate. In Accounting Allocation screen, select Sales ledger grouped under Sales Accounts with VAT/Tax class - Sales @ 5%. The VAT/Tax class appears as Sales @ 5%.
Select Stock item taxable at 13.5%. Enter the quantity and rate. In Accounting Allocation screen, select Sales ledger grouped under Sales Accounts with VAT/Tax class - Sales @ 13.5%. The VAT/Tax class appears as Sales @ 13.5%.
Select Output VAT ledger grouped under Duties & Taxes, Type of Duty/Tax as VAT and VAT Sub Type as Output VAT with VAT/Tax class - Output VAT @ 5% andOutput VAT @ 13.5%.
Sales - Works Contract @ 13.5%
In sales entry select the sales ledger with the VAT/Tax class - Sales - Works Contract @ 13.5%. On selecting the Works Contract and specifying the amount, the Deduction Claimed for Tax Calculation screen will be displayed. In the Deduction Claimed for Tax Calculation screen, the percentage of deduction or the amount has to be specified and the taxable value will be automatically calculated and displayed.
Select the Output VAT ledger with the VAT/Tax class - Output VAT - Works Contract @ 13.5%.
VAT Computation
Go to Gateway of Tally > Display > Statutory Reports > VAT > VAT Computation
The VAT Computation report displays as shown:
