Tally tutorials
Introduction to VAT
Value Added Tax (VAT
• Sales tax is levied on sale of movable goods
• Most of the Indian states have replaced sales
tax with VAT from 1 Apr 2005
• VAT is tax which is charged on the increse in
value of goods and services at each stage of
production and circulation
Example
Seller
Buyer
Sale
Rate of
VAT
Invoice
Value
VAT
payable
Input
VAT
Nett VAT
Payable
Vendor
A
1000
4%
1040
40
A
B
2000
4%
1080
80
40
40
B
Customer 4000
12.5%
4500
5000
80
420
40
VAT terminology
• Input tax: tax paid on purchases
• Output tax: tax charged on sales
• Input credit: the amount of input tax that is
permitted to be set off against output tax
• Composite VAT: Dealer with annual gross
turnover not exceeding a certain limit can opt
for a composition shceme where by they will
pay tax as a small percentage of their gross
turnover.
VAT Rates in Kerala
• I: Exempted good (0%)- essential commodities
• II: 1% Goods- precious stones
• III: 4% goods- industrial goods and capital
goods
• IV: 12.5% goods- all others
Enabling VAT in Tally
• At gate way F11 Features > statutory &
taxation> set yes at enable VAT and set yes at
set/alter VAT details and enter details
• Enter VAT applicable date
VAT Classification
•
•
•
•
•
•
•
Input VAT@1%
Input VAT@4%
Input VAT@12.5%
Output VAT@1%
Output VAT@4%
Output VAT@12.5%
Purchase exempt
Ledger creation for VAT
• Purchase exempt, puchase@1%,
purchase@4% etc
• Sales exempt, sales@1%,sales@12%, etc
• VAT ledger under duties and taxes
• Input VAT 1%, input VAT 4%, output VAT1%,
our put VAT4% etc
VAT vouchers
• VAT configuration: press F12 and Set No at use
common ledger A/c for item allocation and set
Yes at allow selection of VAT/Tax classes
during entry
• Purchase voucher(as invoice)
• Select required VAT Class(purchase@4%) and
select the input VAT ledger. And give other
details as usual
• Sales voucher(as invoice)
• Select VAT class(sales@4%) and select output
VAT ledger and enter other details as usual.
Payment of VAT
• To view VAT computation Report
• Gateway>Display>Statutory Reports>VAT
reports>VAT computations
• Create ledger named VAT payable and pass the
following journal entry
• OutputVAT a/c Dr
• To Input VAT a/c
• To VAT payable a/c
• Then make payment of VAT
VAT Return
• Gateway>Display>Statutory Reports>VAT
reports>VAT Return
CST
• Central Sales Tax are applicable on Interstate
sale of goods
• Generally it is 2%
• Activating CST in Tally
• In F11 features at statutory & taxation enter
interstate registration number
• At F12 configure > invoice order entry option
menu> set yes at activiate E1, E2 transaction.
CST ledger creation
• Create CST party ledger under sundry
creditors
• Create CST on sales ledger(CST@2%) under
duties and taxes
• Create CST on purchase ledger (CST 2%
(purchase))
CST Vouchers
• In Sales voucher select interstate sales from
VAT/Tax class
• Select CST tax ledger
• Select the form to issue and
• Select the form to receive
• Enter other details as usual
CST Repots
• Gateway>display>statutory reports>CST
reports>form Receivable/Form payable
•
CST Details in VAT computation
• VAT computation report provide the
assessable value and the tax amount of the
sales and purchase transactions entere using
defferent VAT/Tax classifications.
• Display>statutory reports>VAT>VAT
coputations
• To view CST details click F12 configure and set
yes at show all VAT classifications
CST Sales register
• Display>statutory reports>CST>CST
register>CST sales
• CST purchase register
• Display>statutory reports>CST>CST
register>CST purchase
Service Tax
•
•
•
•
Tax on services
Except few all services are taxable
The rate of service tax is 10% + 3% Ed-Cess
To enable service tax in tally press F11
features and set yes at enable service tax and
set yes and set/alter service tax details and
enter the required information
Recording purchase of serivices
• Create purchase ledger and set yes in the field
“is service tax applicable?”
• Create supplier ledger and set yes in the field
“is service provider/receover?” (Before that in
F12 Configure set yes at allow advanced
entries in master and at use addresses for
ledger acconts)
• Create service tax ledgers(service tax 12%)
• Enter purchase in purchase vouchers
Input credit summary report
• Display>statutory reports>service tax
reports>Input credity
• Same procedure to be followed to record sale
of services. Ie create sales ledger, customer
ledger, service tax ledger.
Service tax payables
• Display>statutory reports>service tax
reports>sevice tax payables
• Printing TRS Challan
• Display>statutory reports>service tax
reports>input credity form/ST3 Report/ST3A
report
Central excise
•
•
•
•
Tax on porduction. It is an indirect tax
Different rates for different products
Three types of Excises in india.
Basic excise duty, additional duty of excise and
special excise duty
• Thank you…
• abbasvattoli@yahoo.com