Techcraft

Back to: Advanced Course In GST and Direct Taxation

VAT and CST masters in Tally ERP 9:

 

Example:

Let us see how to create VAT and CST Masters  of Chroma Electronics Pvt Ltd in Tally ERP 9.

Input VAT Ledger Head:

Input VAT is incurred during making purchase of Goods. Say VAT Rate is 5% on those goods.

• Go to Gateway of Tally.
• Go to Masters.
• Go to Accounts Info.
• Go to Legers.
• Enter name “Input Vat @ 5%”
• Select Group as “Duties and Taxes” .
• Select Type of Duty as VAT
• Select Sub-Type of Duty as Input VAT
• Select Class as “Input Vat @ 5%”
• Round Method “Normal Rounding” and Limit as “1”.
• Accept the screen and Input VAT @ 5% Ledger head will be created.

Output VAT Ledger Head:

Output VAT is incurred during making Sales of Goods. Say VAT Rate is 5% on those goods.

• Go to Gateway of Tally.
• Go to Masters.
• Go to Accounts Info.
• Go to Legers.
• Enter name “Output Vat @ 5%”
• Select Group as “Duties and Taxes” .
• Select Type of Duty as VAT
• Select Sub-Type of Duty as Output VAT
• Select Class as “Output Vat @ 5%”
• Round Method “Normal Rounding” and Limit as “1”.
• Accept the screen and Output VAT @ 5% Ledger head will be created.

Sales Ledger for VAT Sales :

VAT Rate is 5% on  goods we selling.

• Go to Gateway of Tally.
• Go to Masters.
• Go to Accounts Info.
• Go to Legers.
• Enter name “Sales @ 5%”
• Select Group as “Sales account” .
• Select Option “Used in VAT Return” as “Yes”
• Select Class as “Sales @ 5%”
• Keep “Used to calculate Assessable Value” Option as “No”
• Accept the screen and Sales @ 5%” Ledger head will be created.