To record inclusive of tax sales transaction, you have to enable the option Is inclusive of duties and taxes?
Note : From 01-04-2020 the general VAT rate has been changed from 16% to 14%.
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .
2. Select the party ledger in Party's A/c Name field.
3. Select the sales ledger with taxable nature of transaction.
4. Select the stock item for which the option Is inclusive of duties and taxes? is enabled.
To create stock item with inclusive of tax configuration
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create .
2. Click F12: Configure .
o Set Allow inclusive of tax for stock items? to Yes .
o Press Ctrl+A to save.
3. Enter the name of the stock item in the Name field.
4. Select the required stock group in the Under field.
5. Select unit of measurement in the Units field.
6. Select the option Applicable in the VAT Applicable field.
7. Enable the option Set/alter VAT details? .
o Enter Tax rate and select the option Taxable in the Tax type field in VAT Details screen.
o Press Ctrl+A to save.
8. Set Is Inclusive of duties and taxes? to Yes .
9. Press Enter to save.
5. Enter the Quantity . The Inclusive of Tax screen is displayed.
6. Enter the Rate (Inclusive of Tax) .
7. Select the common VAT ledger. Based on the VAT rate, amount is automatically displayed. The sales invoice appears as shown below:
To create a common VAT ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
2. Enter the Name of the VAT ledger.
3. Select Duties & Taxes in the Under field.
4. Select Types of Duty/Tax as VAT .
5. Press Enter to skip the Percentage of Calculation field.
6. Press Ctrl+A to save.
8. Press Ctrl+A to save.
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