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How to create Trading Accounts with VAT configuration in Tally ERP 9


At the time of creating Trading Accounts like Purchases and Sales Ledgers in Tally ERP 9 Accounting Software, we must configure those Ledger Accounts with the appropriate VAT/Tax Class. As soon as we update the Company with the VAT information in Statutory Features, trading ledger accounts will automatically shows the Statutory Information in the Ledger Creation or Alteration screen.

How to create VATable Purchase Ledger in Tally ERP 9
VAT @ 5% Purchase Ledger Creation in Tally.ERP 9

And let us start creating the Trading Accounts with VAT Configuration in Tally Software for VAT 5% Purchases and VAT 5% Sales.

Creating VAT 5% Purchases Ledger in Tally ERP 9

We have already learned how to create a Purchase Ledger without VAT. And now, let's try to add some stuff to the Purchase Ledger for VAT computation purpose, after configuration of VAT in your Company. You need to create different Purchase Ledgers for various VAT types which know in Tally as VAT/Tax Class such as Purchases @ 1%, Purchases @ 5% etc. So, it is recommended to append VAT Percent at the end of the Ledger name to distinguish it from other VAT Classes. In the Ledger Creation screen

  1. Name the Ledger as Purchases @ 5%
  2. Choose Purchase Accounts group from the List of Groups for Under option.
  3. If the Accounts with Inventory is activated.
    • Under Statutory Information set Yes for Used for Assessable Value Calculation.
    • Select VAT from the list of Duty/Tax Type for Apportion for option.
    • And select Based on Value for Method of Apportion option and save the screen.
  4. If the method of accounting is Accounts Only
    • And select Purchases @ 5% from the list of VAT/Tax Class and save the screen.

Creating VAT 5% Sales Ledger in Tally ERP 9

We have already learned how to create a Sales Ledger without VAT, now try to configure VAT to the Sales Ledger. In the Ledger Creation screen

  1. Name the Ledger as Sales @ 5%
  2. Choose Sales Accounts group from the List of Groups for Under option.
  3. If the Accounts with Inventory is activated.
    • Under Statutory Information set Yes for Used for Assessable Value Calculation.
    • Select VAT from the list of Duty/Tax Type for Apportion for option.
    • And select Based on Value for Method of Apportion option and save the screen.
  4. If the method of accounting is Accounts Only
    • And select Sales @ 5% from the list of VAT/Tax Class and save the screen.

We have seen the Trading Accounts for only VAT @ 5% for creating Trading Accounts for other VAT types just select the appropriate VAT/Tax Class at the time of creating ledger.

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is the founder of AccountsGuy.Net with the view of providing Accounting and Technical support using Accounting package Tally ERP 9, and Office Tools to the people. I write articles on Accounts, Blogging, Computer Operating, and technical issues and some of my experiences on them for students, beginners. Follow our Networks or sing-up for the email newsletter below for your daily dose of Tips and Tricks.
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{ 2 Comments... read them below or add one }

mohammed irshad said...

Hi,I have a problem in tally 9
While preparing accounts like ex.purchase@5% it not showing any option statutory information. So what should I do pls help me....waiting for u r answer....

Venkkatesh K said...

Sorry for the delay, First you have to check whether have you enabled VAT in the Statutory & Taxation Features or Not? Once it is enabled this problem will be solved.

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