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's A/c Name.
3. Select the sales ledger with Sales - Works contract as the Nature of Transaction.
Note: Select the purchase ledger only when the Nature of Transaction is not predefined as Sales - Works Contract. If common ledger is being used:
♦ 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 purchase ledger.
4. Select the stock item, enter the amount.
5. Enter the percentage or amount of deduction in the Deduction Claimed for Tax Calculation screen.
6. Select the VAT ledger.
7. Click A: Tax Analysis to view the Tax Analysis screen.
8. Click F1: Detailed to view the names of stock items.
9. Press Esc to return to sales invoice. The sales invoice appears as shown below:
10. Press O to override the invoice with the changed value.