In Tally.ERP 9, you can create a stock item and define the corresponding details like units of measurement and VAT applicability as required.
To create a stock item
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create.
2. Enter the Name of the stock item.
3. Select the required group in the Under field. If the selected stock group is predefined with tax rate and commodity details, these are applied to the stock item. If Primary is selected, the tax and commodity details specific to the stock item can be defined.
To specify the VAT rate for the stock group in the VAT Details screen
The VAT rate can be specified in either one of the following ways:
● Select a user defined VAT classification.
To enable the option to define tax and commodity details in masters
Go to Gateway of Tally > F11: Features > Statutory & Taxation.
Set the option Define VAT commodity and tax details as masters to Yes.
Press Ctrl+A to save the Company Operations Alteration screen.
To create a user defined classification
Go to Gateway of Tally > Accounts Info. > Statutory Info. > VAT Classifications > Create.
Enter the Name of the new classification.
Enter the applicability date with the corresponding tax rates in Applicable From and Tax Rate columns. The Stat Classification Creation screen appears as shown below:
Press Enter to save.
To define Nature of Transactions and commodity details in the Stat Classification Creation screen
Press F12: Configure to open the Configuration screen to enable commodity details.
The Configuration screen appears as shown below:
To enable Nature of Transactions and commodity details
1. Set the option Enable nature of transaction? to Yes.
2. Enable the option Provide commodity details?
3. Press Ctrl+A to return to the Stat Classification Creation screen.
Select the required Nature of Transaction.
Enter the Commodity Name and Commodity Code.
The Stat Classification Creation screen appears as shown below:
Press Enter to save.
o On selecting a user defined VAT classification, the Stock Group Creation screen is displayed.
● Specify VAT details
o Enter the Tax Rate. If the Tax Rate entered is above 0, the Tax Type automatically appears as Taxable.
o Enter 0 as the Tax Rate, to select Exempt or Zero Rated as the taxability.
4. Select the required unit of measurement in Units field.
5. Set the option VAT Applicable to Applicable.
6. Enable the option Set/Alter VAT Details. Enable this option if the item is not included in a stock group defined with tax details.
To specify the VAT rate for the stock item in the VAT Details screen
The VAT rate can be specified in either one of the following ways:
● Select a user defined VAT classification.
To enable the option to define tax and commodity details in masters
Go to Gateway of Tally > F11: Features > Statutory & Taxation.
Set the option Define VAT commodity and tax details as masters to Yes.
Press Ctrl+A to save the Company Operations Alteration screen.
To create a user defined classification
Go to Gateway of Tally > Accounts Info. > Statutory Info. > VAT Classifications > Create.
Enter the Name of the new classification.
Enter the applicability date with the corresponding tax rates in Applicable From and Tax Rate columns. The Stat Classification Creation screen appears as shown below:
Press Enter to save.
To define Nature of Transactions and commodity details in the Stat Classification Creation screen
Press F12: Configure to open the Configuration screen to enable commodity details.
The Configuration screen appears as shown below:
To enable Nature of Transactions and commodity details
1. Set the option Enable nature of transaction? to Yes.
2. Enable the option Provide commodity details?
3. Press Ctrl+A to return to the Stat Classification Creation screen.
Select the required Nature of Transaction.
Enter the Commodity Name and Commodity Code.
The Stat Classification Creation screen appears as shown below:
Press Enter to save.
o On selecting a user defined VAT classification, the Stock Item Creation screen is displayed.
● Specify VAT details
o Enter the Tax rate. If the Tax Rate entered is above 0, the Tax Type automatically appears as Taxable.
o Enter 0 as the Tax Rate, to select Exempt or Zero Rated as the taxability.
To provide commodity details
1. Press F12: Configure to view the Configuration screen.
2. Set the option Provide commodity details? to Yes.
3. Press L: Details to specify different VAT rates with separate Applicable From dates.
To specify different VAT rates with separate Applicable From dates
1. Press L: Details.
2. Enter Applicable From date.
3. Enter Commodity Name.
4. Enter Commodity Code.
5. Select Type of Goods.
6. Select Category.
7. Enter Tax Rate. Press enter without specifying the rate to select Exempt or Zero Rated in the Taxability column.
The VAT Rate Details screen appears as shown below:
4. Enter the Tax rate.
Note: Press enter without specifying the rate to select Exempt or Zero Rated in the Tax type field.
The VAT Details screen appears as shown below:
5. Press Enter.
6. Press Ctrl+A to save the Stock Item Creation screen.
7. Press Enter to save the stock item creation screen.
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