You can record purchases using the tax classification details as Purchase - Works Contract.
To record a works contract transaction
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
2. Enter Supplier Invoice No. and Date.
3. Select the party ledger in Party's A/c Name option.
4. Select the Purchase Ledger with Purchase - Works Contract predefined as the Nature of Transaction.
If common ledger is being used:
● Click F12: Configure in the invoice, and set the option Allow Modification of Tax Details for VAT? to Yes.
● Select Purchase - Works Contract in the VAT Classification Details screen displayed on selecting the common purchase ledger
5. Select the stock item, enter the Quantity and Rate. Amount appears automatically.
6. Enter the percentage or amount of deduction in the Deduction Claimed for Tax Calculation screen.
7. Select the VAT ledger.
8. Click A: Tax Analysis button to display the Tax Analysis screen.
9. Click F1: Detailed button to view the names of stock items. The Tax Analysis screen appears as shown below:
10. Press Esc to return to purchase invoice.
11. Set the option Provide VAT Details to Yes or No, as required. The purchase invoice appears as shown below:
12. Press Enter to save.
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