Input credit for purchase tax paid is allowed for Nature of transactions excluding Interstate Branch Transfer Outward, Interstate Consignment Transfer Outward,and Interstate Sales - Against Form C, and Interstate Sales – Taxable, on tax amount charged during sales.
The details of purchase value, rate of tax and input tax are recorded in the Purchase Details screen of the transaction. This screen appears only when Allow entry of purchase tax details is enabled in Voucher Configuration screen of the invoice.
To enter purchase tax details in a sales transaction
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. ClickF12: Configure.
3. Enable the option Allow entry of purchase tax details.
4. Pres sCtrl+A to return to voucher screen.
5. Select the buyer ledger in Party’s A/c Name field.
6. Select the sales ledger with Nature of transactions other than Interstate Branch Transfer Outward, Interstate Consignment Transfer Outward, Interstate Sales - Against Form C, and Interstate Sales – Taxable.
7. Select the stock item being sold and enter the quantity and rate.
8. Press Enter in the amount field to open Purchase Details screen.
9. Enter the Purchase Value for the quantity being sold and Rate of Tax. Input Tax Paid appears automatically.
10. Press Enter to save and return to voucher screen.
11. Select the VAT/CST ledger as required. The tax amount appears automatically.
12. Enable the option Provide VAT Details and Enter required details in Statutory Details screen.
13. The purchase voucher appears as shown below.
14. Press Enter to save.
Note: When purchase tax details is not recorded during voucher entry, the transaction will appear in Annexure II as voucher with errors. Drill down to record the missing details in the Annexure Error(s) screen as shown below.
