In transactions recorded for sale of used goods, VAT is not levied directly in the transaction. Since VAT is applicable only on the profit margin, tax liability has to be booked by recording a journal voucher separately.
The Sale on Profit Margin report lists all the profit margin sales recorded in the period. This will help you to get details of tax liability to be booked for the period on account of sale on profit margin.
View the Sale on Profit Margin report
1. Go to Gateway of Tally > Display > Statutory Reports > VAT > VAT Return .
2. In the VAT Return report, navigate to VAT on Marginal Scheme under Sales (Outwards) .
3. Select the row displaying the amount under this section.
4. Press Enter to drill down. The Sale on Profit Margin report appears as shown:
All used goods sales transactions recorded in the reporting period are displayed. The information recorded in the Additional Details screen of the voucher is displayed in separate columns.
The footer section of the report displays the summarised values for:
● Total Liability to be Booked : Displays the total tax amount for which liability has to be booked for profit margin on used goods sales.
● Liability Booked : Displays the amount for which liability is booked by recording a journal adjustment transaction.
● Balance Liability : Displays the pending liability after considering already booked tax liability transactions for profit margin. Tax liability has to be booked for this amount.
Your email with the article link has been sent.