Output VAT ledgers are required to account for VAT payable on sale of taxable Goods/Services.
To create an Output VAT Ledger,
Go to Gateway of Tally > Accounts Info. > Ledgers > Create
Enter the Name of the Output VAT ledger.
Select Duties & Taxes as the group name in the Under field.
Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax.
In VAT Sub Type field select the appropriate VAT Sub Type - Output VAT (to account for tax payable on sales). Depending on the VAT Sub Type selected, Tally.ERP 9 will display the VAT/Tax Class for selection in VAT/Tax Class field. For Example, if Output VAT is selected as VAT Sub Type, application will display only the Output VAT Classifications for selection in VAT/Tax Class field.
In VAT/Tax Class field select the required VAT/Tax Class from the VAT/TAX Class list.
The Percentage of Calculation and Method of Calculation is set as per the VAT/Tax Class selected.
Accept the output VAT ledger.
Note: It is recommended that Output VAT Ledgers be created with appropriate VAT classifications for different rates of VAT.