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An update on the below post. : this is an old post you are requested to ignore this post and download the latest version of tally.erp 9 release 1.60 to avoid problems in vat and excise in Tally.Erp 9

Latest updates resolved the issue related to  VAT, EXCISE in Tally.ERP 9 and made the life simplified.

Today, I will post problems relating to vat and excise.

In, India, there is no unique system for issuing a sales bill.There are so many different practices prevailing in Industry, trade or business and Tally ERP failed to understand this basic point resulted in incorrect calculation of VAT, Excise and reporting of the same

Tally ERP 9 work okay if the billing is simple e.g. (for entering a purchase bill)

Cost of ItemRs.100.00 INR

+Basic Excise Duty 8.00INR


+S.H.E.0.80 INR

+Vat 4%4.32 INR

+Add. Vat 1%1.08 INR


Total bill amount 113.64 INR

IF a bill is such a simple, then there is no problem in calculation. However as I indicated there are multi ways a supplier raise a bill.

Let’s see the same example

+Cost of ItemRs. 100.00 INR

+Excise Duty



+PackingRs. 20.00( or any other expenses)


+Add. Vat


Now, interesting thing is that once you enter the amount of such kind of expenses (packing or any other then the figure of excise duty will automatically changed! In tally ERP however the vat will show a correct figure but the total bill amount not!

And if a supplier charge such an expense on the amount of item + excise + vat then both the duty will get changed accordingly and you will not be able to post a bill in a correct way. Even if you are an advanced user and somehow able to post the entry then VAT reports, calculation (atleast for Gujarat State) will not show a true picture. This Time, I have to prepare vat reports manually for the month of March 2009 until that I was just taking print out directly from the tally 9 without any manual work.

Further more, if you have installed and migrated to tally erp 9 and using the excise module, then don’t try to view a voucher by pressing enter continuously. There are chances that vat, excise duty will be disappear or the figures of vat, excise will be changed and so the bill amount will also be changed.

I hope that Tally will make correction to such big mistake at the earliest. I suggest that it may be possible if Tally allow its users to change the assessable value while entering a purchase/sales voucher which is at presently not possible. If tally users are able to change assessable value both for excise and vat, then this problem might be solve. However it has again to modify its vat reports






6 thoughts on “Problems in VAT and Excise in Tally.ERP 9

  1. iwant to know about inventory (stock creation with all types of tax)stock journal pricing and price level entering of closing stock with example problems

  2. Mr Avilash Ray says:

    As per instruction when I want make a new ledger Tally-9.0 in the name of Sales @ 5% or Purchase @ 5% and wish to make a new VAT class Sales @ 5% it does not show any option direct or indirect to make the new class, please suggest me

  3. DEAR sir,
    Plz help me in this…

    Am using TALLY 9 with MULTI Currency.
    and kept usd $ currency as my second currency !

    -> After doing transactions of multi currency and inputting exchange rate as per the day… at the end of year am NOT getting the exact amount as per the prevailing exchange rate.

    For example.
    When I open the multi currency ledger Cash a/c and press f12-show only forex !
    The forex amount, doesnt match with the primary amount.

    Did you get me ?
    Or should I send you screen pictures, maybe youll understand !

    Thanks for your kind help may GOD bless you !

    1. kamlesh patel says:

      Go to Account info, – cureincies – Rate of Exchange – up date filed Date for date of Exchange – i.e 31-3-2012 – Up date filed std Rate i.e rs 50.80 on 31.3.2012,

      Now you can gate details of exchange Rate fluctuation as on 31 march 2012.

  4. Dear Sir,

    Please help me in this..
    I am using tally 7.2 and want to show vat in seperate column instead of rows.
    Or should I send you screen pictures, maybe youll understand !


    1. Hello Jiten,
      We do not offer support for Tally 7.2 as the same is a dead product.
      However, If you have a genuine License of Tally 7.2 and you are a practicing C.A. then We would offer you free upgrade to the lastest Tally.erp 9 Auditors edition which is Multi user also and it will be completely free for you! if you have a valid Tally 7.2 license.

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