A Licensed Manufacturer is entitled to purchase goods, tax free. If a Licensed Manufacturer has paid tax on purchase of raw materials, then he can claim rebate against the sales tax paid on purchases. This type of rebate can be adjusted against the sales tax liability of the licensed manufacturer.
A Licensed Manufacturer can claim a rebate of 4% on Sales Tax paid @ 5% and a rebate of 8% on Sales Tax paid @ 10%.
Go to Gateway of Tally > Accounting Vouchers > F7: Journal Voucher
Select the Voucher Type from the Voucher Class List
In the Journal Voucher screen, debit the Sales Tax ledger, for e.g., Sales Tax @ 5%
Select the Sales Tax Class from the Sales Tax Class list
Credit the Purchases ledger, for e.g., Purchases @ 5% - ST10
Enter the Narration, if required
Press Y or Enter to accept and save.
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