Configuring Tax Amount (VAT on Quantity)

The tax amount chargeable on each unit of pre-owned cars, can be predefined in the stock item. On selecting this stock item in the invoice, the tax amount appears automatically.

To enable the feature of VAT on Quantity

1.    Go to Gateway of Tally > F11: Features > Statutory & Taxation.

2.    Set the options as shown below to view the Company VAT Details screen:

o     Enable Value Added Tax (VAT) to Yes.

o     Set/alter VAT details to Yes.

3.    Set the option Enable VAT on quantity to Yes in the Company VAT Details screen.

4.    Press Ctrl+A to save the Company VAT Details screen.

5.    Press Ctrl+A to save the Company Operations Alteration screen.

To create a stock item by defining the tax amount chargeable per unit

1.    Go to Gateway of Tally > Inventory Info. > Stock Items > Create.

2.    Select the Units.

3.    Set the option VAT Applicable to Applicable.

4.    Set the option Set/Alter VAT details to Yes. The VAT Details screen appears.

o     Select the Calculation type as On Quantity.

o     Enter the Tax rate chargeable per unit. For example, if the pre-owned car attracts tax amount of 3,000 per car, enter the Tax rate as 3,000 and Surcharge as 10%.

o     Press Ctrl+A to save the VAT Details screen.

5.    Press Ctrl+A to save the stock item master.