Transfer of Right to Use Under GCC VAT

When the ownership of goods is transferred to another business for a certain period, the consideration paid for the right to use the goods is taxable. It is to be noted that transactions are recorded only for the consideration amount, and the actual value of the goods are not included in the transaction.

Record transfer of right to use

1.    Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

2.    Click I: Accounting Invoice to record the transaction in invoice mode.

3.    In Party A/c name, select the ledger of the customer belonging to a GCC country.

4.    Under Particulars, select the sales ledger created with Domestic Supplies - Transfer of Right to Use as the Nature of transaction.

5.    Select the VAT ledger.

6.    Press Ctrl+A to accept.