Zero Rated Purchases

In VAT Act, zero Rated supplies/goods are listed under Part A, B & C of Fifth Schedule.

Examples of Zero Rated Supplies/Goods:

• Exercise books.

• Floats for fishing nets.

• Carding machines for preparing textile fibre etc

To create a voucher for Zero Rated Purchase,

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

1. Enter the Supplier Invoice Number and Date.

2. Select the Party’s A/c Name from the List of Ledgers. In case of Cash Purchases being made, select Cash ledger grouped under Cash-in-Hand in the Party's A/c Name field.

3. Select the Purchase Ledger with the VAT/Tax Class - Purchases - Zero Rated.

4. Select the VAT/Tax Class as Purchases - Zero Rated from the List of VAT/Tax Class, if it was not specified while creating ledger.

5. Select the required stock items from the List of Items. Enter the Quantity and Rate for each item. The amount is automatically displayed in the Amount field.

6. In Brief Desc for VAT field, enter the brief description of the goods purchased.

Note: The brief description entered about the stock will be captured in (F)Brief Description of Supply Box in VAT Annexure.

9. Enter Narration if required.

10. Press Y or Enter to accept and save.

Note: The assessable value of purchases made using VAT/Tax classification Purchases - Zero Rated is captured in box 8 - ZERO RATED PURCHASES (in Value EXCL. VAT) of Form VAT 3.