VAT Computation under VAT Reports in Tally ERP 9 has simplified the process of VAT calculation for the VAT Payment or Refunding. In the manual processing you need to check all the Invoices, Debit & Credit Notes physically and need to calculate the VAT amount against the Assessable Value. If you implement the VAT in Tally ERP 9, It reduces most of your time and you need not to calculate the VAT Payable or refundable amount manually. Tally will do this work in favour of you. All you need to enter the Invoices, Debit and Credit Notes properly in Tally ERP 9. That will show you the amount of VAT either payable or refundable.
VAT Computation Report will show the compete details about the VAT Payable or Refundable
Here is a company named AccountsGuy.Net, i have created in Tally ERP 9 and configured VAT for this company; created Ledgers, Stock Items; and finally made the voucher entries. Check the below steps to see VAT Computation Report.
- You must Load the company where the Taxable Voucher entries are done.
- Click on Display under Reports from Gateway of Tally screen.
- Select Statutory Report.
- And after that VAT.
- Finally you need to click on VAT Computation to get the VAT Report.
In the screen you can see Input VAT Amount under Purchases and Output VAT Amount under Sales. and the Assessable Value is the invoice amount deducting VAT amount. and VAT Amount is given under Tax Amount which is calculated against the Assessable Value.
Total Sales Assessable Value = 60,000/- Therefore Output VAT @ 14.5% = 2,250/- Total Purchases Assessable Value = 1,10,000/- Therefore Input VAT @ 14.5% = 15,950/-. Therefore, Excess amount over the Output VAT is Rs. 7,250/- is VAT Refundable.