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Defining Tax Rates at Company Level (VAT)

This topic covers how to define tax rates at the company level and create a common VAT ledger.

The VAT rate defined at the company level will be automatically applied while recording sales and purchase transactions.

Defining Tax Rates

  1. Press F11 (Features) > set Enable Value Added Tax (VAT) to Yes.
    If you do not see this option:
    . Set Show more features to Yes.
    . Set Show all features to Yes.
  2. The Company VAT Details screen appears as shown below:
  3. Select the State.

Note: State is auto filled if you have selected the state during company creation. The name of new union territory Dadra & Nagar Haveli and Daman & Diu is provided in Release 6.6.3. All masters with Daman & Diu and Dadra & Nagar Haveli are automatically updated with the name of new union territory.

  1. Enter the TIN.
  2. Press Enter to skip Inter-state Sales Tax Number.
  3. Enable Set/alter tax/rate details. The Tax/Rate Details screen appears as shown below:
  4. Enter the Tax rate, as required.
  5. Click F12 (Configure) to open the Configuration screen to enable CST.

To enter CST rate

  • Enter the CST rate in Against Form C field.

The Tax/Rate Details screen appears as shown below:

The Configuration screen appears as shown below:

To enable CST

  • Enable the option Set CST rate.
  • Press Ctrl+A to return to the Tax/rate details screen.
  1. Press Enter to return to the Company VAT Details screen.
  2. Click F12 (Configure) to enter additional details if required.

To enter Additional Information and applicability date of VAT

  1. Enter date of applicability in VAT applicable from field.
  2. Select Periodicity of e-VAT Annexures, as required.
  3. Enter LVO/VSO Code in the Additional Information section.
  4. Enter Authorised Person, Status/Designation and Place.

The Company VAT Details screen appears as shown below:

The Configuration screen appears as shown below:

To enter Additional Information and applicability date of VAT

  • Enable the option Show date from which VAT is applicable.
  • Enable the option Show Additional Information.
  • Press Enter to return to the Company VAT Details screen.
  1. Press Ctrl+A to save.

 

Creating a Tax Ledger

  1. Gateway of Tally > Create > type or select Ledger > and press Enter.
    Alternatively, press Alt+G (Go To) > Create Master > Ledger > and press Enter.
  2. Enter the Name of the VAT ledger.
  3. Select Duties & Taxes in the Under field.
  4. Select VAT as the Type of duty/tax.
  5. Set Use for Purchase Tax to No.
  6. Press Enter to skip Percentage of Calculation (eg 5). The Ledger Creation screen appears as shown below:
  7. Press Enter to save.

Similarly, create a CST ledger under Duties & Taxes, by selecting CST as the Type of Duty/Tax.

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