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 the Supplier Invoice number and date.
3. Select the Party's A/c Name .
4. Select the Purchase Ledger with Purchase - Works Contract as the Nature of Transaction.
Note: 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 Sales - Works Contract in the VAT Classification Details screen displayed on selecting the common sales 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 and cess ledgers.
8. Click A : Tax Analysis to display the Tax Analysis screen.
9. Click F1 : Detailed to view the names of stock items.
The Tax Analysis screen appears as shown below:
The purchase invoice appears as shown below:
10. Press Enter to save.
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