In VAT Act, zero rated supplies/goods are listed under Fifth Schedule.
For Example:
● Exercise books
● Floats for fishing nets
● Carding machines for preparing textile fibre and so on
To record a zero rated purchase
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 created with Purchase - Zero Rated as the Nature of transaction.
Note: If purchase common ledger is being used:
1. Click F12: Configure in the invoice and set the option Allow modification of Tax Details for VAT? to Yes.
2. Select Purchase - Zero Rated 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.
The purchase invoice appears as shown below:
6. Press Enter to accept the invoice.
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