To record purchases for works contract, you can set up the nature of transaction and provide the stock item details, such as quantity and rate of items. You need to provide the percentage or rate of deduction for recording a works contract transaction.
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's A/c Name.
4. Select the Purchase Ledger with Purchase - Works Contract as the Nature of Transaction.
If the purchase ledger is predefined with this nature of transaction, it need not be selected in the invoice.
If common ledger is being used:
o Click F12: Configure in the invoice and set the option Allow Modification of Tax Details for VAT to Yes.
o 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. The purchase invoice appears as shown below:
11. Press O to save invoice with the changed value.
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