Purchase of works contract can be recorded with Purchase - Works Contract as the Nature of Transaction in the purchase invoice. Deduction can be claimed for tax calculation.
Works contract purchase transaction can be recorded using:
● Predefined nature of works contract
Or
● User defined nature of works contract
To record a works contract transaction with predefined nature of works contract
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
2. Select party ledger in the field Party's A/c Name .
3. Select purchase ledger with Purchase - Works Contract as the Classification / Nature .
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 Purchase - Works Contract in the VAT Classification Details screen displayed on selecting the common purchase ledger.
4. Select stock item and enter the Quantity and Rate .
5. Select Nature of Contract from the predefined List of Nature of Works Contract .
6. Enter amount for Deductions , as required.
7. Define Assessable Value for VAT rate and amount. The completed Works Contract Details screen appears as shown below:
8. Press Enter to save and return to the Accounting Voucher Creation screen.
9. Select the VAT ledger.
10. Click A : Tax Analysis to view the Tax Analysis screen.
o Click F1 : Detailed to view the stock items. The Tax Analysis screen appears as shown below:
o Press Esc to return to the Accounting Voucher Creation screen.
11. The purchase invoice appears as shown below:
12. Press Enter to save the invoice.
To record a works contract transaction with user defined nature of works contract
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
2. Select party ledger in field Party's A/c Name .
3. Select sales ledger with Purchase - Works Contract as the Classification / Nature .
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 Purchase - Works Contract in the VAT Classification Details screen displayed on selecting the common purchase ledger.
4. Select stock item and enter the Quantity and Rate .
5. Select New Nature of Works Contract from the List of Nature of Works Contract , as shown below:
6. Enter name for the New Nature of Works Contract .
7. Enter rate and amount for Deduction for Labour Charges .
8. Define Rate of VAT and Assessable Value , as required. The completed Works Contract Details screen appears as shown below:
9. Press Enter to save and return to the Accounting Voucher Creation screen.
10. Select the VAT ledger.
11. Click A : Tax Analysis to display the Tax Analysis screen.
o Click F1 : Detailed to view the stock items. The Tax Analysis screen appears as shown below:
o Press Esc to return to the Accounting Voucher Creation screen.
12. The purchase invoice appears as shown below:
13. Press Enter to save the invoice.
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