Creating Common VAT Ledger

To create a 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. Set Use for Purchase Tax to No.

The Ledger Creation screen appears as shown below:

6. Press Enter to save.

Similarly, create a CST ledger under Duties & Taxes,  by selecting CST in Type of Duty/Tax.