Defining Tax Rates at Company Level

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Defining Tax Rates

Creating Tax Ledger

The VAT rate defined at the company level will be automatically applied while recording sales and purchase transactions.

Defining Tax Rates

●      Go to Gateway of Tally > F11: Features > Statutory & Taxation.

●      Enable the option Set/alter VAT Details. The Company VAT Details screen appears as shown below:

To define a single VAT/CST rate at the company level

1.     Select the State.

Note: State is auto filled if you have selected the state during company creation.

2.     Enter the TIN.

3.     Press Enter to skip Inter-state Sales Tax Number.

4.     Enable Set/alter tax/rate details. The Tax/Rate Details screen appears as shown below:

5.     Enter the Tax rate, as required.

6.     Click F12: Configure to open the Configuration screen to enable CST.

7.     Press Enter to return to the Company VAT Details screen.

8.     Click F12: Configure to enter additional details if required.

9.     Press Ctrl+A to save.

Creating Tax Ledger

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 VAT as the Type of duty/tax.

5.     Set Use for Purchase Tax to No.

6.     Press Enter to skip Percentage of Calculation (eg 5).

The Ledger Creation screen appears as shown below:

7.     Press Enter to save.

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