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Vat guide in Tally with screen shots

Mr. Varun has written this excellent Vat   guide in Tally  to assist Tally community. Varun  loves to help tally user community. This is an extensive guide which is very useful for beginners as well as advanced users of Tally.erp 9

Vat guide in Tally | Examples

Sales for specific type debtors with VAT Class

There are instances when you have a specific customer whom you want to give a predetermined discount irrespective of the item he purchases. These are special customers. Vat guide in Tally in pdf format will help you to understand it properly

let’s assume, I am a mobile dealer. I have two sets of customers

Retailers and Wholesalers

I have a fixed price for retailers and a discounted price for wholesalers

This article will help you how to activate  discounts at the time of entry and this can be done

 

from ( press F11 and then F2)

"Vat guide in tally"

 

However this consumes extra time and effort, so what is the solution to have a fixed system so that Tally understands who those special customers are, who will be getting the products at a discounted rate.

Mr .Bhogle is a retailer and I will be selling to him at regular price, while MrModi is a wholesaler and I will be making all my sales to him at 5% discount irrespective of the quantity.

 

Vat guide in Tally | Two Case study

Let us examine the two scenarios:

For this purpose, you should have a clear understanding of the ledger and related grouping.

I will put Mr. Bhogle under a group named Retail Debtors( a sub group of Sundry Debtors) and Mr. Modi will be put under a group named ( Whole sale debtor- a sub group of Sundry Debtors)

Scenario 1:

Mr. Bhogle buys mobile XEON

Now Mr.  Bhogle is a retail debtor and hence he is not liable for any discount.

But Mr. Bhogle might buy mobiles that have different VAT rates.

So let us understand the problem once again and see how that can be tackled.

The problem is – Mr.  Bhogle (a Retail Debtor who is not liable for any discount) buys mobiles of different types of mobiles (both 4% and 13.5% VAT applicable rates)

We have considered two items of XEON mobile one with 4% and the other with 13.5% VAT rates. These rates are given at the time of master creation itself.

 

Vat guide in Tally | Screen shots of All Ledgers and Vouchers

We create a ledger (Mr. Bhogle) as

clip_image004

Now go to the sales voucher and alter

clip_image006

Then for VAT Retail create :-

Vat guide in Tally

www.tallynine.com

The three VAT ledgers are created for OUTPUT@4%, Output@13.5% and Output@12.5%

. Similarly, a ledger is created for the special discount customer named Mr.Modi

clip_image010

Now we again go the sales voucher and alter for VAT Wholesale

clip_image006[1]

 

clip_image012

A new ledger named Discount is created under Total Sales and -10% is given

If a discount of 10% is given.

Now go to accounting vouchers à Sales à and then make sales and select the class Whole sale or Retail

clip_image013

Now only those debtors falling under the Retail or wholesale group would be visible.

 

The screen looks like :-

 

clip_image015

Handling Vat in Tally with Item master

Items- Lets us create the item ledger for mobile phones named XEON at 12.5% and Xeon at 13.5%

Go to the Item creation master by going to gateway of Tally and then pressing enter to Create Items

Item master configuration

Then press F12 and change this to YES as shown below

clip_image016

Now create an item – named XEON 12.5%

clip_image018

Then set the default ledger for accounting as :-

clip_image019

Once this is done your item is ready, similarly create an item named XEON 13.5% in this manner.

Once this is done, you can go to the sales voucher and make the sales by selecting the vat class as Retailer- where only Mr Bhogle is shown.

clip_image021

We see that automatically the VAT rates are calculated and a sales voucher is also prepared.

Now similarly we create a sales voucher for the Wholesaler Mr.Modi

Go to the sales voucher:-

And then select the VAT class as Wholesale:-

clip_image023

 

Voucher class is a special class of voucher and very useful to pass sales / Purchase entry with correct duty ledger and auto calculation of duties without any errors.

If you don’t know how to create a Voucher class in Tally.ERP 9, then this handy guide might be useful for you.

Create a voucher class to auto calculate vat and Excise duty 

Now the items are selected and the rates are calculated automatically.

Not only are the VAT rates calculated correctly. We also see the Discount being given to Mr.Modi @10% as we had set in the Wholesale – Class in the sales voucher.

Do let’s share you views how you handle Vat in accounts ?

 

 

 

I LOVE TALLY

Hi Just like you, I am one of the souls on EARTH who has a desire to be able to maintain my accounts accurately and be most efficient in using the powerful features of Tally. Currently I work as an accountant at a firm in Durgapur. I am a Tally lover and would be happy to solve your queries related to Tally, however I may not be able to reply to all the queries instantly but will surely try to solve them and give u a solution( provided I get free time from my daily work :) )

Click Here to Leave a Comment Below
T. JAY SHANKAR - 5 years ago Reply

DEAR SIR,
I AM A FACULTY IN THE INSTITUTE OF COMPUTER ACCOUNTANTS MIDNAPUR CENTRE AND WANT TO BE A MEMBER OF TALLY AND WORK AS A SUPPORT ASSISTANT IN TALLY PLEASE SUGGEST ME THAT WHAT SHOULD I DO FOR THIS. I HAVE 6 YEARS EXPERIENCE IN THE TALLY SOFTWARE

Mahendra Rana - 5 years ago Reply

T. Jay Shankar,

First thing is that professionals do not write in CAPITAL LETTERS. If you want to build your career professionally do never repeat this mistake.

Sreesha - 5 years ago Reply

Dear Sir,

I am an accountant in a company, i have attended the Tally classes also, but what my problem is that, i am not able to do the entries in tally of our company from the starting i.e., from Aug 2011. I need your help that how to make the entries of ledger, shares, contra entry and how to make the first entry of the bank account opening that the chq is deposited to bank of say for example Rs.1lakh then how the entry should be passed in the tally, suppose our boss mother has given the chq of Rs.1lac form her account, and she is not a concerned person to our company, how the capital ledger to be created and how the entry should be made, please tell me in detail. Please sir, i am confused in this.

Please help me.

WIth Regards,
Sreesha.

Adarsha - 5 years ago Reply

a company have a member of a club, so payament to club his membership charge by cash, how to entry that payament in tally nine

Adarsha - 5 years ago Reply

a company proprietor expenses some money for his own family members
how to entry in tally nine

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