You can calculate VAT after discount by creating a discount ledger and configuring it to form a part of the assessable value. You can create a discount ledger, select it in the sales invoice and view the appropriated discount value in the triangulation report.
Recording a sales invoice with discount ledger
Viewing Appropriated Discount Value in the Triangulation Report
To create a discount ledger
1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create.
2. Select Indirect Expenses or Indirect Incomes in the option Under.
3. Set the option Is VAT/CST applicable? to Not Applicable.
4. Set the option Include in assessable value calculation for? to VAT.
5. Set the option Method of Calculation to Based on Value. The Ledger Creation screen appears as shown below:
6. Press Enter to save.
To record a sales invoice with discount ledger
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Select the Party's A/c Name.
3. Select the Sales Ledger.
4. Select the stock item and enter the Quantity and Rate. The Amount appears automatically.
5. Select the discount ledger and enter the discount percentage. You can enter the amount even without entering the percentage.
6. Select the VAT ledger. The sales invoice appears as shown below:
7. Click A: Tax Analysis. The Tax Analysis screen displays the discount value considered for VAT calculation, as shown below:
8. Press Esc to return to sales invoice.
9. Press Ctrl+A to accept.
To view the appropriated discount value in the triangulation report
1. Go to Gateway of Tally > Display > Statutory Reports > VAT.
2. Select the VAT or CST form to view the triangulation report.
3. Select Sales Taxable @ 14.5%, as shown below:
4. Press Enter to view the Voucher Register. The discount amount appropriated to assessable value for VAT calculation appears as shown below:
For a few states, the discount amount has to be captured in specific fields of the return forms. Hence, the option Type of Ledger? which can be set to Discount, is provided for the following states:
● Bihar
● Chandigarh
● Chhattisgarh
● Goa
● Karnataka
● Kerala
● Maharashtra
● Odisha
● Punjab
● West Bengal
For the states of Haryana and Punjab, you can select Freight as the Type of Ledger? to capture the value of freight charges in the relevant fields of forms and annexures.