Input VAT Ledger Creation

To create an Input VAT Ledger:

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

1. Enter the Name of the VAT ledger, for e.g., Input VAT @ 15% – Goods

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

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

4. Select the VAT Sub Type as Input VAT

5. Select the VAT/TAX Class as Input VAT @ 15%

6. The Percentage of Calculation and Method of Calculation will be displayed based on the VAT/Tax Class selected.

7. Enter the Opening Balance, if any

8. Accept the input VAT ledger creation.

Similarly, create the ledgers for levy of input VAT on:

• Services by selecting Input VAT @ 15% – Services and

• Imports by selecting  Input VAT @ 15% on Imports  as the VAT/Tax Class.

Note: The opening balance entered in the input VAT ledger creation screen will be captured in Box 18 of MUSAK-19 as the Closing balance of previous period.

The input VAT is chargeable at a fixed rate of 15% on both purchase of goods and service.