In VAT Form 3 report, you can view the break-up of purchase and purchase returns recorded for capital goods attracting 16% VAT rate. You can export the transaction details to worksheet F_General_Rated_Purchases_Dtls of VAT3_Return.xlsm template.
Note : From 01-04-2020 the general VAT rate has been changed from 16% to 14%.
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
2. Press Ctrl+V to switch to the voucher mode.
3. Click F12: Configure .
● Allow modification of Brief Description of VAT - Yes
● Click F12: Advanced .
● Allow expenses/fixed assets in purchase vouchers? - Yes .
● Accept the configuration screen.
4. Enter Supplier Invoice No. and Date in the purchase voucher.
5. Credit the party ledger, and enter the total value of capital goods and VAT.
6. Debit the capital goods ledger. Ensure that the capital goods ledger is created as given below:
● Grouped under Fixed Assets .
● Is VAT applicable? - Applicable .
● Set/Alter VAT Details? - Yes .
● Nature of transaction - Purchase Taxable - Capital Goods , with applicable Tax rate .
7. Debit the VAT ledger.
8. Enter the Brief Desc of VAT .
9. Press Ctrl+A to accept the voucher.
1. Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9 .
2. Original invoice no and Original Invoice Dt. : E nter the invoice number and the date of the original purchase transaction against which you are recording the purchase return.
3. Debit the party ledger, and enter the total value of capital goods and VAT.
4. Credit the capital goods ledger and VAT ledger.
5. Enter the Brief Desc of VAT .
Note: Enable the option Allow modification of Brief Description of VAT? in the debit note Voucher Configuration screen.
6. Set the option Provide VAT details to Yes .
● In the Statutory Details screen, set the option Nature of Return to Not Applicable .
● Press Enter to save.
7. Press Ctrl+A to accept the voucher.
1. Go to Gateway of Tally > Display > Statutory Reports > VAT > VAT Form-3 .
2. Press F1 : Detailed to view the break-up of purchase and purchase returns of capital goods as shown below:
If the debit note is recorded in the subsequent month, the values will appear with a negative sign, as shown below:
In the VAT3_Return.xlsm template, the purchase returns of capital goods taxable at 16% appears in the worksheet F_General_Rated_Purchases_Dtls .
'Recording Purchase and Purchase Returns of Capital Goods (Kenya VAT)' has been shared with