Recording a Tax Invoice for Pre-Owned Cars

In Tally.ERP 9, you can record a tax invoice to account for the sale of pre-owned cars.

To record a tax invoice for sale of pre-owned cars

1.    Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Tax Invoice.

2.    Select the party ledger.

3.    Select the Sales Ledger predefined with the nature of transaction Sales Taxable.

4.    Select pre-owned car as the stock item.

5.    Ensure the following details are provided in the VAT Details screen of stock item:

o     Type of goods are set to Pre-Owned Cars (Above 1000 CC) or Pre-Owned Cars (On Or Below 1000 CC)

o     Calculation type is set to On Quantity

o     Tax rate is entered as 3,000 or 5,000 based the Type of goods (pre-owned cars - above or below 1000 cc).

o     Surcharge is entered as 10%.

6.    Enter the Quantity and Rate.

7.    Select the VAT ledger. The amount appears based on the amount entered in Tax rate field of stock item master.

8.    Select the surcharge ledger.

9.    Press Ctrl+A to accept.