Defining Tax Rates at Company Level

This topic covers how to define tax rates at the company level and create a common VAT ledger.

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

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

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

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

3.     Select the State.

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

4.     Enter the TIN.

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

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

7.     Enter the Tax rate, as required.

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

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

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

11.  Press Ctrl+A to save.

Creating a 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.