You can record an imports taxable purchase by selecting Imports Taxable as the Nature of transaction . Since the supplier is not charging tax do not include input VAT amount in the purchase invoice. You can create another voucher to record payment of custom duty. In this second voucher you can allocate the customs duty paid as expenses, and input VAT based on the input credit allowed by the department.
To record a purchase - imports taxable transaction
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
2. Enter Supplier Invoice No. and Date .
3. Select the Party's A/c Name .
4. Select the purchase ledger with Imports Taxable as the Nature of transaction .
Note: If purchase 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 Imports Taxable in the VAT Classification Details screen displayed on selecting the common purchase ledger.
5. Select the stock item imported, enter the Quantity and Rate (in foreign currency).
o Enter the Rate of Exchange in the Forex Rate of Exchange screen. The amount is automatically displayed in the Amount field.
o Press Enter .
6. Enter Custom Entry No.
7. A warning will be displayed due to the absence of VAT amount in the invoice. Press Enter to accept the warning.
The purchase invoice appears as shown below:
8. Press Enter to save.
To record a voucher for the customs duty
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
2. Press Ctrl+V for voucher mode.
● Click F12: Configure and enable the options Allow modification of tax details for VAT? and Allow expenses/fixed assets in purchase vouchers?
3. Credit the customs department ledger created under Sundry Creditors and enter the amount paid in the Credit column.
4. Debit the expense ledger (in which the option Is VAT applicable? is set to Applicable ) . The VAT Details screen appears.
o Click F12: Configure and set the option Allow override Assessable Value? to Yes . Press Enter .
o Enter Assessable Value on which input VAT has to be calculated for claiming input credit. Press Enter .
5. In the Debit column, enter the amount paid as customs duty. Press Enter .
6. Debit the Input VAT ledger and enter the amount approved by the department to be claimed as input credit in the Debit column.
7. Press O to accept without conflicts.
You can claim input credit to the extent of the input VAT debited in this transaction.
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