In VAT Act, zero rated supplies/goods are listed under Fifth Schedule.
For Example:
● Exercise books
● Floats for fishing nets
● Carding machines for preparing textile fibre and so on
To record a zero rated purchase
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
2. Enter Supplier Invoice No. and Date .
3. Select the Party's A/c Name .
4. Select the purchase ledger created with Purchase - Zero Rated as the Nature of transaction .
Note: If purchase common ledger is being used:
1. Click F12: Configure in the invoice and set the option Allow modification of Tax Details for VAT? to Yes .
2. Select Purchase - Zero Rated in the VAT Classification Details screen displayed on selecting the common purchase ledger.
5. Select the stock item, enter the Quantity and Rate . Amount appears automatically.
The purchase invoice appears as shown below:
6. Press Enter to accept the invoice.