Supplies - Inclusive of VAT

The VAT inclusive voucher class needs to be used when tax is to be internally calculated on goods attracting VAT without displaying the same in the invoice. The voucher class has to be created by defining the percentage of calculation for assessable value and VAT in the sales voucher type. On selecting this voucher class in sales invoice and entering the item value, the calculation of assessable value and VAT happens internally and reflects in VAT Computation report and VAT 002.1 form. Also the calculated amount can be viewed in alteration mode of sales invoice.

Sales Invoice - Voucher Class Inclusive of VAT

Go to Gateway of Tally > Accounts Info. > Voucher Types > Alter > Sales

  1. In the Voucher Type Alteration screen, enter the Name of Class as VAT Inclusive.

  1. In the Voucher Type Class screen End of List in Exclude these Groups and Include these Groups columns.

  2. Under Default Accounting Allocations for each Item in Invoice:

  3. Select the Sales ledger with VAT/Tax class - Sales @ 12% and enter the Percentage as 89.29%. Set Override using Item Default to No.

  4. Select Output VAT ledger with VAT/Tax class - Output VAT @ 12%. The percentage gets displayed as 10.71%

Note:  The percentage is calculated for Sales @ 12% as 100/112*100 = 89.29 and output VAT @ 12% as 100/112*12 = 10.71 (or 100 - 89.29 = 10.71).

  1. Under Additional Accounting Entries select End of List.

  1. Accept the Voucher Type Class screen.

  2. Accept the Voucher Type Alteration screen.

Supplies using VAT Inclusive Voucher Class

Go to Gateway of Tally > Accounting Vouchers > F8: Sales > Select the Voucher Type as Sales

  1. Select VAT Inclusive from Voucher Class List

  1. Select the party ledger in the Party’s A/c Name field.

  2. In the Party Details screen, enter/modify the required details.

  3. Select the Name of Item from the List of Items. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.

  4. The field Show Statutory Details will be set to No. The output VAT will be internally calculated hence it will not reflect in Statutory Details screen. The output VAT will be displayed in VAT Computation report.

  1. Press Y or Enter to accept and save.

Note: In the alteration mode of VAT inclusive Sales invoice the breakup of assessable value and VAT can be viewed when the option - Use Common Ledger A/c for Item Allocation is set to No in F12: Sales invoice configuration.