Businesses recording both local and interstate transactions configure local VAT and CST rates while configuring company VAT details. Additionally, you can instruct Tally.ERP 9 to levy applicable rate by selecting appropriate nature of transactions, dealer location or type, and so on.
To configure the VAT and CST rates
1. Go to Gateway of Tally > F11: Features > F3: Statutory > Enable Set/alter VAT details? .
2. Enable Set/alter tax/rate details? .
The Company VAT Details screen appears as shown below:
3. Click F12: Configure and enable the option Set CST rate? as shown below:
4. Specify the CST Rate and VAT Rate as shown below:
Note: VAT rate can be set at company level if all the items in the company are taxed at a single rate. If different items are taxed at different VAT rates, the same can be specified at stock group/stock item level.
To compute tax rate at transaction level
For local sale/purchase, ensure that party selected is configured with local state. On selecting the VAT ledger, the VAT amount gets calculated automatically at the configured rate as shown below:
For interstate sale/purchase, ensure that the party selected is configured with any state other than the local state. While passing the transaction, enable Is against C form? in Party Details screen as shown below:
On selecting the CST ledger, the CST amount gets calculated automatically as shown below:
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