Creating VAT Ledgers (Andhra Pradesh)

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

VAT Ledger - Duties & Taxes

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 Types 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.

VAT Ledger - Current Assets or Current Liabilities

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 accept the Master Configuration screen.

5.     Enable the option Behave as Duties & Taxes?.

6.     Select Types 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.

VAT Ledger - Providing tax credit details on capital goods

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 accept 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:

8.     Press Ctrl+A to accept and return to the Ledger Creation screen.