Under Kenyan VAT Act, the designated stock items are grouped under different Tariff Classifications and rate of tax applicable is defined.
In Tally.ERP 9, while creating stock items the Tariff Number applicable to the stock item has to be assigned.
To create a VAT Commodity,
Go to Gateway of Tally > Inventory Info. > VAT Commodity > Create
Enter the VAT Commodity Name
In Used for field VAT will be displayed and cursor skips the field.
In Commodity Code field enter the Tariff Number e.g. 84713000
Enter the Notes if required and accept the VAT Commodity Creation screen.
To create a Stock Item,
Go to Gateway of Tally > Inventory Info. > Stock Items > Create
Enter the Name of the stock item.
Select the group name in the Under field.
Select the unit of measurement of the stock item in the Units field. (Use Alt+C in this field to create the Unit of Measurement)
In the Commodity field, select the required VAT Commodity. The VAT Commodity Code will be displayed along with the Commodity Name in the List of VAT Commodities.
Enter the Rate of VAT of the stock item.
Enter the Opening Balance (quantity and rate of the stock item), if any.
Accept the stock item creation screen.