VAT Return - Form VAT 3

The Form VAT 3 is a monthly return. The submission date for this return is 20th day of the month following the tax period.

To print the logo, press F11: Features > F1: Accounts and set the feature, Enable Company Logo to Yes. In the CMP CompanyLogo Path screen, enter the path of the company logo in Location of Logo field with the name of the image and file extension, for e.g., C:\Tally.ERP9\Logo\KRA.bmp

Go to Gateway of Tally > Display > Statutory Reports > VAT > VAT Return

The VAT Return option will display the Print Report screen. Enter the From and To date of the Tax period, Name and Status/Designation of the authorised person, Place and Date in the screen.

In the Specify the KRA Logo Path field, provide the path entered for logo printing in the F11: Features.

Press Y or Enter to accept and save.

The Print preview of Form VAT 15 displays as shown:

The explanation on Form VAT 15 is as follows:

Return for the Month of

The From and To date mentioned in the Print Report screen is captured here.
 

Registered Name

The Mailing Name entered in the Company Creation screen is captured here.

VAT No.

The VAT Number is the VAT Registration Number (Regular) as entered in Company Operations Alteration screen (F11: Features > F3: Statutory & Taxation) is displayed here.

P.O Box

P.O Box number as entered under Additional Information in Company Operations Alteration screen (F11: Features > F3: Statutory & Taxation) is displayed here.

Code

Code as entered under Additional Information in Company Operations Alteration screen (F11: Features > F3: Statutory & Taxation) is displayed here is displayed here.

PIN

The Personal Identification Number of the Company as entered under Additional Information in Company Operations Alteration screen (F11: Features > F3: Statutory & Taxation) is displayed here.

Town

The Town name entered under Additional Information in Company Operations Alteration screen (F11: Features > F3: Statutory & Taxation) is displayed here

Tel. No

The Telephone Number of the company as entered in the Company Creation screen is captured here.

Street

The street name entered under Additional Information in Company Operations Alteration screen (F11: Features > F3: Statutory & Taxation) is displayed here.

Building

The building name entered under Additional Information in Company Operations Alteration screen (F11: Features > F3: Statutory & Taxation) is displayed here.

I. Sales Details

1. Taxable Sales (General Rate)

The total assessable value (exclusive of Tax), Rate and VAT charged on all sales made using the VAT Classifications provided for general Rate i.e. 16% is captured in this field.

2. Taxable Sales (other Rates)

The total assessable value (exclusive of Tax), Rate and VAT charged on all sales made using the VAT Classifications provided for other Rates i.e. 12% is captured in this field.  

3. Zero Rated Sales

The total assessable value (exclusive of Tax) and Rate of all sales made using the VAT Classifications provided for zero rated sales is captured in this field.

4. Exempt Sales

The total assessable value (exclusive of Tax) of all sales made using the VAT Classifications provided for Sales - Exempt & Export sales is captured in this field.

5. Total Sales and output Tax Charged

The total assessable value (exclusive of Tax) of all sales transactions - General Rate, Other Rate, Zero Rated, Exempt & Export Sales  and output tax charged is captured in this field.

II. Purchases Details

6. Taxable Purchases (General Rate)

The total assessable value (exclusive of Tax), Rate and VAT charged on all purchases made using the VAT Classifications provided for general Rate i.e. 16% and Imports @ 16% are captured in this field.

7. Taxable Purchases (other Rates)

The total assessable value (exclusive of Tax), Rate and VAT charged on all purchases made using the VAT Classifications provided for other Rates i.e. 12% is captured in this field.  

8. Zero Rated Purchases

The total assessable value (exclusive of Tax) and Rate of all purchases made using the VAT Classifications provided for zero rated sales and imports are captured in this field.

9. Total Taxable Purchases and Input Charged

The total assessable value (exclusive of Tax) of all sales transactions - General Rate, Other Rate, Zero Rated, Imports @ 16%, Imports and Input tax charged is captured in this field.

10. Less Non Deductible Input Tax

The debit value of journal entry made using the VAT Adjustment - Non-Dedutible Input Tax is captured in this field.

The journal entry is given below:

In journal voucher, select Non-Dedutible Input Tax in Used for field

Debit: Non- Deductible ITC Ledger  (created under Indirect Expenses)

Credit: Input VAT ledger with appropriate VAT/Tax class (for e.g., Input VAT @ 16%)

11. Deductible Input Tax (9-10)

The Net Input Tax i.e. Total Input charged - Non Deductible input Tax will be captured in this field.

12. Tax Due (or Claimable) for the period

Tax Due for payment or Claimable (if the input tax is more than the tax payable) for the period shall be captured in this field

The Tax Due/Claimable for the Period is arrived by deducting the Deductable Input Tax by Total Output Charged

Tax Due (or Claimable) for the Period = Total Output Tax Charged (Box 5) - Deductible Input Tax (Box 11)

III. Adjustments

13. Less VAT withheld (Attach a Schedule)

The debit value of journal entry made using the VAT Adjustment - Adjustment of Vat Withheld is captured in this field.

The journal entry is given below:

In journal voucher, select Adjustment of Vat Withheld in Used for field

Debit: Tax ledger (created under Duties & Taxes with Type of Duty/Tax as VAT)

Credit: Current Asset Ledger  

14. Less Credit Balance from Previous Month

The input credit carried forward from the previous month will be captured in this field.

15. Add Refund Claim Paid and Disallowed

 The excess input VAT as prescribed by the Act can be claimed by the dealer as refund. The Credit value of journal entry made using the VAT flag - Adjustment towards Refund Claim is captured in this field.

The journal entry is given below:

In journal voucher, select Adjustment towards Refund Claim in Used for field

Debit: Refund Claimed Ledger (created under Current Assets)

Credit: Input VAT ledger with appropriate VAT/Tax class (for e.g., Input VAT @ 16%)

16. Final Tax payable/ Credit carried forward for this period

The final tax payable / input Credit carried forward (if the input credit is in excess of tax payable) for the current tax period will be captured in this field.

Pay-In-Slip Counterfoil

Under this section,

Kenya  Revenue Authority VAT Payment Slip

Under this section,


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