This topic covers how to define tax rates at the company level and create a common VAT ledger.
The VAT rate defined at the company level will be automatically applied while recording sales and purchase transactions.
To define a single VAT/CST rate at the company level
1. Go to Gateway of Tally > F11: Features > Statutory & Taxation .
2. Enable the option Set/alter VAT Details . The Company VAT Details screen appears as shown below:
3. Select the State .
Note: State is auto filled if you have selected the state during company creation.
4. Enter the TIN .
5. Press Enter to skip Inter-state Sales Tax Number .
6. Enable Set/alter tax/rate details . The Tax/Rate Details screen appears as shown below:
7. Enter the Tax rate , as required.
8. Click F12: Configure to open the Configuration screen to enable CST .
To enter CST rate
● Enter the CST rate in Against Form C field.
The Tax/Rate Details screen appears as shown below:
The Configuration screen appears as shown below:
To enable CST
● Enable the option Set CST rate .
● Press Ctrl+A to return to the Tax/rate details screen.
9. Press Enter to return to the Company VAT Details screen.
10. Click F12: Configure to enter additional details if required.
To enter Additional Information and applicability date of VAT
1. Enter date of applicability in VAT applicable from field .
2. Select Periodicity of e-VAT Annexures , as required.
3. Enter LVO/VSO Code in the Additional Information section.
4. Enter Authorised Person , Status/Designation and Place .
The Company VAT Details screen appears as shown below:
The Configuration screen appears as shown below:
To enter Additional Information and applicability date of VAT
● Enable the option Show VAT applicable from? .
● Enable the option Show additional details?
● Press Enter to return to the Company VAT Details screen.
11. Press Ctrl+A to save.
To create a common VAT ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
2. Enter the Name of the VAT ledger.
3. Select Duties & Taxes in the Under field.
4. Select VAT as the Type of duty/tax .
5. Set Use for Purchase Tax to No .
6. Press Enter to skip Percentage of Calculation (eg 5) .
The Ledger Creation screen appears as shown below:
7. Press Enter to save.
Similarly, create a CST ledger under Duties & Taxes , by selecting CST as the Type of Duty/Tax .
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