In Tally.ERP 9, you can define new tax rates at the ledger or stock item level and enter the VAT details accordingly.
Defining New Tax Rate in the Ledger Master
Defining Tax Rate in Stock Item
To define new VAT rate in a ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
2. Enter the name of the ledger. For example, Inputvat 5.5%
3. Select Duties & Taxes from Under field.
4. Select VAT in Type of Duty/Tax field.
5. Enter the VAT rate in Percentage of Calculation. The rate entered here is used for calculating VAT in the invoice.
Note: In an invoice, if the rate predefined for the selected item is different from the rate specified in VAT ledger, the calculation will not happen due to mismatch in predefined rates of item and VAT ledger master.
The Ledger Creation screen appears as shown below:
To define Tax Rate in Stock Item
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Alter .
2. Select the stock item.
3. Set the option Set/alter VAT details to Yes as shown below:
1. Enter the new Tax Rate, for example, 5.5%, in the VAT Details screen.
2. Press Enter and in Revised Applicability, provide Applicable from period. For example, 1-4-2016.
3. Press Enter to save.
4. Now you can pass the transaction with the new Vat rate based on the applicable date.
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