On this page:
Recording Purchase Transactions
Recording Adjustment and Payment Transactions
2. How do I define tax rates at group level?
3. How do I define tax rates at ledger level?
4. How do I define tax rates at stock item level?
5. The VAT rate I have configured has changed now. How can I revise the rate in my data?
In VAT Details screen of stock item master, press Ctrl+C in Trade Name option to view the primary list of commodities. Based on the selection made for Trade name, the option Commodity name displays the list of commodities.
2. How to select the trade name in accounts or inventory masters?
To select the trade name in VAT Details screen of stock group/stock item/ledger
1. Click F12: Configure, and set the option Provide Trade Name? to Yes.
2. Accept the Configuration screen.
3. Press Ctrl+C in the option Trade name and select from the list.
4. Select the Calculation type.
5. Enter the Tax rate and Surcharge based on the Calculation type.
6. Press Enter to save.
3. How to configure a purchase ledger to use it for retail purchases and purchases from exempted unit?
In the VAT Details screen of purchase ledger grouped under Purchase Accounts, select Non Creditable Purchase - Special Goods as the nature of transaction. Select the Party Entity/Org. Type as:
● Exempted Unit, to use the ledger for non-creditable purchases made from exempted unit.
● Retail, to categorise the transaction as retail purchases.
4. How to select the district in party ledger master?
To select the district of the party ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the customer ledger.
3. Select Sundry Debtors or Sundry Creditors as the group name in the field Under.
4. Set Maintain balances bill-by-bill? to Yes.
5. Enter the Default credit period, if any.
6. Set Check for credit days during voucher entry to Yes, if required.
7. Enter the Mailing Details.
8. Select the Country as India.
9. Select the State as Punjab.
10. Select the District Name from the List of Districts, as shown below:
11. Press Enter to return to the Ledger Creation screen.
12. Enter the Pincode.
13. Press Ctrl+A to accept.
5. How to configure tax amount for pre-owned cars?
The tax amount chargeable on each unit of pre-owned cars, can be predefined in the stock item. On selecting this stock item in the invoice, the tax amount appears automatically.
To enable the feature of VAT on Quantity
1. Go to Gateway of Tally > F11: Features > Statutory & Taxation.
2. Set the options as shown below to view the Company VAT Details screen:
o Enable Value Added Tax (VAT) to Yes.
o Set/alter VAT details to Yes.
3. Set the option Enable VAT on quantity to Yes in the Company VAT Details screen.
4. Press Ctrl+A to save the Company VAT Details screen.
5. Press Ctrl+A to save the Company Operations Alteration screen.
To create a stock item by defining the tax amount chargeable per unit
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create.
2. Select the Units.
3. Set the option VAT Applicable to Applicable.
4. Set the option Set/Alter VAT details to Yes. The VAT Details screen appears.
o Select the Calculation type as On Quantity.
o Enter
the Tax rate chargeable per
unit. For example, if the pre-owned car attracts tax amount of 
3,000 per car, enter the Tax
rate as 3,000 and Surcharge
as 10%.
o Press Ctrl+A to save the VAT Details screen.
5. Press Ctrl+A to save the stock item master.
6. How to configure Diesel and petrol details under stock item?
To configure the stock item as petrol and diesel
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create.
2. Enter the Name of the stock item.
3. Select the Units.
4. Set the option VAT Applicable to Applicable.
5. Enable the option Set/Alter VAT details to Yes. In the VAT Details screen,
o Press Ctrl+C in Trade name option and select PETROLEUM AND PETROLEUM PRODUCTS.
o Select Commodity name as PETROL or DIESEL.
o Enter the other relevant details.
o Press Ctrl+A to save.
6. Press Ctrl+A to save.
7. How do I create a supplier ledger?
8. How do I create a customer ledger?
9. How do I create a purchase ledger?
10. How do I create a sales ledger?
11. How do I create a freight ledger?
12. How do I create a VAT ledger under Duties & Taxes?
13. How do I create a VAT ledger under Current Assets or Current Liabilities?
14. How do I configure a ledger for Notional tax credit?
15. How do I create a surcharge ledger?
16. How do I create a VAT classification?
1. How to account for purchase of schedule H items?
2. How to record transactions of pre-owned cars?
To record a tax invoice for sale of pre-owned cars
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Tax Invoice.
2. Select the party ledger.
3. Select the Sales Ledger predefined with the nature of transaction Sales Taxable.
4. Select pre-owned car as the stock item.
5. Ensure the following details are provided in the VAT Details screen of stock item:
o Type of goods are set to Pre-Owned Cars (Above 1000 CC) or Pre-Owned Cars (On Or Below 1000 CC)
o Calculation type is set to On Quantity
o Tax rate is entered as 3,000 or 5,000 based the Type of goods (pre-owned cars - above or below 1000 cc).
o Surcharge is entered as 10%.
6. Enter the Quantity and Rate.
7. Select the VAT ledger. The amount appears based on the amount entered in Tax rate field of stock item master.
8. Select the surcharge ledger.
9. Press Ctrl+A to accept.
3. How do I record local purchase transaction for items attracting multiple VAT rates?
4. How do I record interstate purchase invoice against Form C?
5. How do I record interstate purchase invoice for items attracting multiple CST rates?
6. How do I record purchases of capital goods?
7. How do I record taxable purchases with freight charges?
8. How do I record purchases made from unregistered dealers?
9. How do I record retail purchases?
1. When and how can the land customs station details be provided in the sales transaction?
The information of Land Customs Stations (LCS) can be provided while recording exports and high seas sales.
To provide land customs details in a sales transaction
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Select the party ledger (country selected in the mailing details is other than India).
3. Select the sales ledger predefined with any of the following nature of transactions:
o Exports
o Sales High Seas
4. Select the stock item,and enter the Quantity and Rate.
5. Set the option Provide VAT Details to Yes to view the Statutory Details screen.
o Enter the details of LCS (Land Customs Stations), as shown below:
o Press Ctrl+A to return to sales invoice.
6. Press Ctrl+A to accept.
2. Which are the new deduction types provided for works contract?
In the Works Contract Details screen of sales invoice (with Sales - Works Contract selected as the Nature of Transaction), you can provide the following details:
● Description of Contract
● Deduction for Labour Charges
● Payments to Sub Contractor
● Other Allowable Deductions
3. How do I record a local sales invoice for taxable goods with multiple VAT rates?
4. How do I record an interstate sales invoice against Form C?
5. How do I record an interstate sales invoice for items attracting multiple CST rates?
6. How do I record a sales works contract transaction?
7. How to enable Rate (Inclusive of Tax) for the stock items while passing invoice?
8. How do I record a sales transaction inclusive of tax?
9. How do I record sales transaction with tax on MRP?
10. How do I record a transaction by overriding tax details in invoice or voucher?
11. How do I record a sales transaction with VAT and service tax?
12. How do I record interstate sales with additional expense?
13. How do I record sales invoice with VAT and excise duty?
1. How to record journal vouchers for adjustments related to schedule H items?
The journal vouchers can be recorded by selecting the nature of adjustments as given below:
| Nature of Adjustment | Additional Details |
Journal Entry |
Increase of Tax Liability |
Purchase Tax Sch. H Items |
Debit: Current Assets ledger Credit: Output VAT Credit: Surcharge ledger |
Input Tax Adjustment for Purchases Tax Sch. H Items |
--- |
Debit: Input VAT ledger Credit: Current Assets ledger |
Reversal of Input Tax |
Purchase Tax Sch. H Items |
Debit: Expenses ledger Credit: Input VAT ledger Credit: Surcharge ledger |
2. What are the adjustment transactions for notional ITC?
The journal vouchers can be recorded by selecting the nature of adjustments as given below:
| Nature of Adjustment | Additional Details |
Journal Entry |
Decrease of Output Tax |
Adjustment of Output VAT Against Notional ITC |
Debit: VAT/Surcharge ledger Credit: Notional ITC ledger |
Increasing Notional Input Tax |
--- |
Debit: Notional ITC ledger Credit: Indirect expense ledger |
Reversal of Notional Input Tax |
Purchases Not Eligible for Notional ITC U/S 13(5) |
Debit: Expenses ledger Credit: Notional ITC ledger |
Reversal of Notional Input Tax |
on Account of no stock |
Debit: Expenses ledger Credit: Notional ITC ledger |
3. How do I record a purchase return?
4. How do I record a sales return?
5. How do I record a payment voucher?
6. How do I record a journal voucher for adjustment towards CST?
7. How do I record a journal voucher for reversal of input tax?
8. How do I create a journal voucher for TDS adjustment?
9. How do I account for increase in output tax?
10. How do I account for increase in tax liability?
11. How do I account for increase in input tax?
12. How do I account for refund of input tax?
1. List out the forms and annexures provided in Release 5.2?
The following forms and annexures are supported in Release 5.2:
● VAT-15
● VAT-18
● VAT-19
● VAT-23
● VAT-24
● Worksheet 3
● Worksheet 4
● Worksheet 5
● Worksheet 6
● CST-1
● VAT_16
● VAT-2 Challan
● Form II Challan
2. List out the forms and annexures which are not provided in Release 5.2?
The following forms and annexures are not supported in Release 5.2:
● Form VAT 20
● Form VAT 17
● Form VAT 21
● Worksheet-1
● Worksheet-2
3. What is Form VAT 15 report?
4. What are excluded transactions?
5. What are included transaction?
6. What are uncertain transactions?
7. How do I export data to Form VAT 15?
8. How do I export data to Form VAT 16?
9. What information is displayed in Payment Section of Form 5?
10. How do I export data to CST Form 1?
11. How do I save the VAT return?
12. How do I recompute the VAT returns?
13. How do I view included transactions details?
14. How do I view excluded transactions details?
15. How do I print payment voucher as VAT challan?
16. How do I print payment voucher as CST challan?
17. Are the tax payment transactions included in Total number of transactions shown in VAT computation?
No, the tax payment transactions are not included in Total Number of Transactions shown in VAT computation report.
The tax payment details are shown separately under the heading Payment Details.
18. When actual and billed option is used, the bill details double on exporting to VAT annexure 18, why?
In case of transactions with actual and billed quantity, the billed and free items are captured in different rows, against the same invoice number in the annexure as required by the department. Due to which an invoice number appears in duplicate in the annexure.
1. How do I resolve Unable to determine country/state exception?
2. How do I resolve Unable to determine party's dealer type exception?
3. How do I resolve Unable to determine duty type of ledger exception?
4. How do I resolve Unable to determine the tax details of the stock group/stock item(s) exception?
5. How do I resolve Unable to determine the tax details of group/ledger(s) exception?
6. How do I resolve Conflict in party's country/state in master and transaction exception?
7. How do I resolve Transactions accepted with tax information conflicts exception?
8. How do I resolve Mismatch in tax amount exception?
9. How do I resolve Unable to determine nature of adjustment exception?
10. How do I resolve Unable to determine purchase tax details exception?
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