Creating VAT Ledgers

Input VAT

To create a Input VAT Ledger,

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

1.      Enter the Name of the Input VAT ledger you wish to create, for e.g., Input VAT @ 4%

2.      Select Duties & Taxes as the group name in the Under field.

3.      Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax.

4.      Select the requisite VAT/Tax Class, for e.g., Input VAT @ 4% from the VAT/TAX Class list.

5.                  Percentage of Calculation and Method of Calculation are updated automatically based on the Type of Duty/Tax and VAT/Tax Class selected.

6.                  For Rounding Method select as Not Applicable

7.                   Press Enter to Accept to save

Note: It is recommended to create separate Input VAT ledgers with appropriate VAT classification for different rates of VAT. However, Tally.ERP 9 provides you the flexibility to use a common Input VAT ledger for different rates, by selecting VAT classification as Not Applicable and allows selection of required classification from the list of VAT/Tax Class while recording a transaction.

Output VAT

To create a Output VAT Ledger,

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

1.      Enter the Name of the output VAT ledger you wish to create, for e.g., Output VAT @ 4%

2.      Select Duties & Taxes as the group name in the under field.

3.      Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax.

4.      Select the requisite VAT/Tax Class, for e.g., Output VAT @ 4% from the VAT/TAX Class list.

5.                  Percentage of Calculation and Method of Calculation are updated automatically based on the Type of Duty/Tax and VAT/Tax Class selected.

6.                  Press Enter to Accept to save

Note: It is recommended to create separate Output VAT ledgers with appropriate VAT classification for different rates of VAT. However, Tally.ERP 9 provides you the flexibility to use a common Output VAT ledger for different rates, by selecting VAT classification as Not Applicable and allows selection of required classification from the list of VAT/Tax Class while recording a transaction.