VAT Ledgers

The procedure used for creating the following ledgers is given here.

• Input VAT

• Input NHIL

• Output VAT

• Output NHIL

Input VAT Ledger

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

1. Enter the Name as Input VAT @ 12.5%

2. Select Duties & Taxes as the group name in the Under field

3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax

4. Set the VAT Sub Type as Input VAT

5. Select Input VAT @ 12.5% in the VAT/Tax Class field from the VAT/Tax Class list displayed

6. The option Inventory values are affected is set to No by default as it is a VAT ledger

7. The Percentage of Calculation and Method of Calculation will be displayed based on the VAT/Tax Class selected

8. Press Y or Enter to accept and save.

Similarly create a ledger for input VAT on imports by selecting the VAT/Tax class - Input VAT @ 12.5% on Imports.

Input NHIL Ledger

In the ledger creation screen,

1. Enter the Name as Input NHIL @ 2.5%

2. Select Duties & Taxes as the group name in the Under field

3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax

4. Set the VAT Sub Type as Input VAT

5. Select Input NHIL @ 2.5% in the VAT/Tax Class field from the VAT/Tax Class list displayed

6. The option Inventory values are affected is set to No by default.

7. The Percentage of Calculation and Method of Calculation is displayed based on the VAT/Tax Class selected

8. Press Y or Enter to accept and save.

Output VAT Ledger

In the ledger creation screen,

1. Enter the Name as Output VAT @ 12.5%

2. Select Duties & Taxes as the group name in the Under field

3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax

4. Select the VAT Sub Type as Output VAT

5. Select Output VAT @ 12.5% in the VAT/Tax Class field from the VAT/Tax Class list displayed

6. The option Inventory values are affected is set to No by default

7. The Percentage of Calculation and Method of Calculation will be displayed based on the VAT/Tax Class selected

8. Press Y or Enter to accept and save the output VAT Ledger.

Output NHIL Ledger

In the ledger creation screen,

1. Enter the Name as Output NHIL @ 2.5%

2. Select Duties & Taxes as the group name in the Under field

3. Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax

4. Select the VAT Sub Type as Output VAT

5. Select Output NHIL @ 2.5% in the VAT/Tax Class field from the VAT/Tax Class list displayed

6. The option Inventory values are affected is set to No by default

7. The Percentage of Calculation and Method of Calculation will be displayed based on the VAT/Tax Class selected

8. Press Y or Enter to accept and save the output NHIL Ledger.