Defining Tax Rates at Group Level

You can define tax rates as a group level, and create a stock item under the defined VAT rate.

Creating Stock Item

Creating Duty Ledger

Using the defined VAT rate in Transactions

VAT/CST rates for a business dealing with multiple stock items having multiple VAT/CST rates can be configured at the group level.

To define tax rates at group level

1.     Go to Gateway of Tally > Inventory Info. > Stock Groups > Create.

2.     Enter the Name of the stock group.

3.     Select the required group from Under field.

4.     Enable the option Set/alter VAT details to open the VAT Details screen.

5.     Specify the VAT rate for stock group.

6.     Press Enter to save the Stock Group Creation screen.

Creating a Stock Item

To create a stock item under a group with the defined VAT rate

1.     Go to Gateway of Tally > Inventory Info. > Stock Items > Create.

2.     Enter the Name of the stock item.

3.     Select the required group from Under field.

4.     Select the required unit of measurement in Units field, as shown below:

5.     Press Enter to save.

Creating Duty Ledger

Create a common VAT ledger under Duties and Taxes. Click here for the detailed procedure.

Using the defined VAT rate in a Transaction

The VAT rate of each stock item is calculated automatically using the VAT rate defined for each stock item at group level, if the VAT ledger is selected while passing a transaction for multiple stock items.

The VAT rate defined at group level is used to calculate VAT when passing a transaction for multiple stock items belonging to different groups, having different VAT rates.

The Accounting Voucher Creation appears as shown below:

The tax analysis shows that VAT is calculated for each stock item as per the rate defined in the group.

Note: When the tax rate is defined at group level, it will apply to all the stock items under the group.