Creating a Sales Ledger (Composition Tax)

To create a Sales Ledger,

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

• Enter the Name of the Sales Ledger

• In the Under field, select Sales Accounts from the List of Groups

• Set the field Inventory values are affected to Yes

• Set the field Used in VAT Returns to Yes

• Select the VAT/Tax Class from the list displayed.

Note: The VAT/Tax Classifications pertaining to sales will be displayed for selection based on the State and the Type of Dealer pre-defined in the F3: Statutory & Taxation Features. The VAT/Tax classifications displayed for purchases in this example pertains to Karnataka State.

• Accept the sales ledger.