Record sales works contract details in vouchers with Sales - Works Contract as the Nature of Transaction. Deduction can be claimed for tax calculation.
To record a works contract transaction
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales.
2. Select the party ledger in the field Party's A/c Name.
3. Select the sales ledger with Sales - Works contract as the Nature of transaction.
Note: For a common ledger, click F12: Configure in the invoice and set the option Allow modification of Tax Details for VAT? to Yes. Select Sales - Works Contract in the VAT Classification Details screen displayed on selecting the common sales ledger, as shown below:
4. Select the item, and enter the Quantity and Rate or Amount.
5. Enter the percentage or amount of deduction in the Deduction Claimed for Tax Calculation screen. The Deduction Claimed for Tax Calculation screen appears as shown below:
6. Select the VAT ledger.
7. Click A: Tax Analysis to display the Tax Analysis screen.
o Click F1: Detailed to view in detailed mode. The Tax Analysis screen appears as shown below:
o Press Esc to return to the sales invoice.
The sales invoice appears as shown below:
8. Press Enter to save.