You can create VAT ledgers under Duties & Taxes or Current Assets. Tax credit details on capital goods are also recorded in VAT ledgers.
VAT Ledger grouped under Duties & Taxes
VAT Ledger grouped under Current Assets
VAT Ledger - providing tax credit details on capital goods
CST ledger grouped under Purchase Accounts
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 Type of duty/tax as VAT.
5. Press Enter to skip the Percentage of Calculation field, if rate specific VAT ledger has to be created.
Note: To create a VAT ledger with a specific rate, enter the tax rate in Percentage of Calculation field.
The Ledger Creation screen appears as shown below:
6. Press Enter to save.
Similarly, you can create a CST ledger under Duties & Taxes by selecting CST as the Type of duty/tax.
Reference of tax credit available on purchase of capital goods can be provided in the VAT ledger master. This reference can then be selected in journal voucher to avail the tax credit.
To provide tax credit details in VAT ledger
1. Click F12: Configure in Ledger Creation screen.
2. Set the option Provide ITC on capital goods? to Yes.
3. Press Ctrl+A to save and return.
4. Select Duties & Taxes in the Under field.
5. Set the Type of duty/tax to VAT.
6. Enable the option Set/alter ITC details? (displayed under Tax Registration Details section).
7. Enter the references of tax credit in ITC on Capital Goods screen.
The ITC on Capital Goods screen appears as shown below:
Note: The columns in the ITC on Capital Goods screen appears based on the state selected in Company VAT Details screen. If the State is selected as Uttar Pradesh, the columns Addn'l Rate % and Addn'l Tax Amount Claimable appears after the VAT Amount Claimable column.
8. Press Ctrl+A to save and return to the Ledger Creation screen.
To create a tax ledger grouped under Current Assets
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the VAT ledger.
3. Select Current Assets or Current Liabilities in the Under field.
4. Click F12: Configure.
o Enable the option Allow creation of tax ledgers under other groups?
o Press Ctrl+A to save the Master Configuration screen.
5. Enable the option Behave as Duties & Taxes?.
6. Select Type of duty/tax as VAT.
7. Enter the VAT rate in Percentage of Calculation field, if rate specific VAT ledger has to be created. The Ledger Creation screen appears as shown below:
8. Press Enter to save.
Similarly, you can create a CST ledger under Current Assets or Current Liabilities by selecting CST as the Type of duty/tax.
To create a CST ledger grouped under Purchase Accounts or Direct Expenses
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the CST ledger.
3. Select Purchase Accounts or Direct Expenses in the Under field.
4. Click F12: Configure.
o Enable the option Allow creation of tax ledgers under other groups?
o Press Ctrl+A to save the Master Configuration screen.
5. Set the option Is VAT/CST applicable to Not Applicable.
6. Set the option Include in assessable value calculation for to Not Applicable.
7. Enable the option Behave as Duties & Taxes?.
8. Select Type of duty/tax as CST.
9. Enter the CST rate in Percentage of Calculation field, if rate specific VAT ledger has to be created. The Ledger Creation screen appears as shown below:
10. Press Enter to save.
To create Additional Tax ledger for Gujarat or Uttar Pradesh VAT
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the additional tax ledger.
3. Select Duties & Taxes in the Under field.
4. Select Types of duty/tax as Additional Tax .
5. Press Enter to skip the Percentage of Calculation field.
The Ledger Creation screen appears as shown below:
6. Press Enter to save.
To create Cess ledger for Uttarakhand VAT
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Enter the Name of the cess ledger.
3. Select Duties & Taxes in the Under field.
4. Select Types of duty/tax as Sales Tax Cess.
Note: For Uttarakhand VAT, cess on quantity is not supported.
5. Press Enter to skip the Percentage of Calculation field.
The Ledger Creation screen appears as shown below:
6. Press Enter to save.
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