Implimenting VAT in Tally.


Tally 7.2 and Tally 8.1 are VAT compliant versions. You can generate state specific VAT returns. VAT sales and Purchase annextures can be printed automatically just by entering data in correct format and defining correct ledgers classes. If you have to prepare VAT returns through Tally then company configuration has to be changed.
In case of Tally 7.2 just modify company details and select use for Indian VAT Yes.
In case of Tally 8.1 go to F11 and alter statutory Features in F3. Select VAT to Yes.
Keep in mind to select State from List in Address section. The statutory master would be selected for that state only.

Make separate ledgers for sales and purchase for separate VAT rate. For example if you are dealing in 4% and 12% VAT rate items then you have to make ledgers for Sales 4% and Sales 12% under sales and Purchase 4% and purchase 12% under Purchase account. Correct VAT/Tax Class has to mentioned while creating those ledgers.

Now make ledger for input and output VAT ledgers for collection of sales VAT and Purchase VAT. These should be separate for different VAT rate. i.e. input VAT 4% and input VAT 12% in the same way make ledgers for output VAT for purchase VAT. At this moment you have to assign proper VAT/Tax class for these ledger.
Now make entries by entering vouchers of sales and purchase. and you would find proper figures are appearing in respective forms. You would also find proper VAT computation in VAT computation screen. You can check it by going to Gateway of Tally >Display> Statutory Reports>Vat Classification > VAT Computation

If some forms are not shown then cross check the VAT class allocation for that ledger. Tally has tried to rectified all VAT related problems but still many states VAT returns are facing problems.
For more help regarding VAT knowledge you can see the full white paper available on Tally's site on VAT, or you can find basics of VAT Here.
For any suggestion or your problem related to VAT leave a comment here.

Shailendra Yadav

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26 responses:

  1. I am from gujarat, we need two seprate list for Tax Invoice and Retail Invoice then how to get it please help me, mail me on dvchudasama@gmail.com
    thank your very much for lots of good help for tally

    ReplyDelete
  2. from 1st April 2008 in gujarat 2.5% & 1% add vat applied is it updated in tally.

    ReplyDelete
  3. Anand ji, You can get the latest statutory in Tally stat file. All you have to do is install the latest stat file and it would be updated. You can view the stat release notes files also from Tally's Site.

    ReplyDelete
  4. we are using tally 9.0, please provided me KVAT(Karnataka)-2003
    Ineligible input tax credit how to use please provide me help
    our email Id:durgaprasaddr@gmail.com

    ReplyDelete
  5. we are using tally 9.0, please provided me KVAT(Karnataka)-2003
    Ineligible input tax credit how to use please provide me help
    our email Id:durgaprasaddr@gmail.com

    ReplyDelete
  6. we are using tally 9.0, please provided me KVAT(Karnataka)-2003
    Ineligible input tax credit how to use please provide me help
    our email Id:durgaprasaddr@gmail.com

    ReplyDelete
  7. I think in tally 9 , the system of recording transactions of Purchase and sale is little change and there is no need to make purchase and sale accounts two rates VAT but tally 9 automatically adjust this point and you can pass the voucher entry of purchase and sale with VAT input and output it will automatically calculate Total value of VAT payable to govt .
    I think this article need updated

    ReplyDelete
  8. sir i using tally 7.2

    but my company diffrate vat class
    tally 7.2 how create new vat class
    exp- cst @ 4%
    cst @ 3%
    vat @ 2%
    ohter taxes

    please inform how create vat class
    my mail vinaytiwari85@gmail.com

    thanking you
    vinay

    ReplyDelete
  9. Anonymous5:24 PM

    Can anyone tell me how to round off vat automatically calculated and levied while invoiceing in tally 9. as the amount comes in paise, but i want it to be rounded off to nearby rupee automatically.

    ReplyDelete
  10. Anonymous1:15 PM

    hi,
    I worked in Tally7.2.
    I just want to refresh the tally package, Can anyone tel me whr I can get the data?

    ReplyDelete
  11. sir i using tally. ERP 9

    but my company diffrate vat class
    tally ERP-9 how create new vat class
    exp- cst @ 4%
    cst @ 3%
    vat @ 3% & 13.5%
    ohter taxes

    please inform how create vat class
    my mail swarupdas85@gmail.com

    thanking you

    ReplyDelete
  12. sir
    iam from gujarat
    iam confuse abt ledger creation of outside gujarat purchase under CST 2% ACTUALLY I WANT TO KNOW HOW TO LEDGER CREATE OF CST 2%?

    ReplyDelete
  13. Sir i am using tally 9.2 version.
    We are into battery sales and services.
    we file vat every month before 17th. This month i am not able to find the Vat form which comes below the Vat computations.
    So i am not able to take the printouts. I think some one has changed the configeration as the total Vat form is disappeared.So
    pls guide me about this

    ReplyDelete
  14. stans you need to upgrade perhaps it would cure all your maladies.

    ReplyDelete
  15. Anonymous3:24 PM

    Hello sir,
    i am from Nepal and we have different types of vat rates which doesn't match the default vat rates as provided according to the Indian States, so can you help me to create or alter the vat classification as per my requirement.
    Please do mail me. Awaiting your reply.

    Email: getmelock@hotmail.com

    ReplyDelete
  16. Tally doesn't support Nepal's statutory requirements.
    You can create manual ledgers and accordingly do accounting.

    ReplyDelete
  17. Anonymous8:42 AM

    I want starting entry all my expenses of home like personal, school fee, all type of home expenses in to tally. but which expenses entry into which form... please guidance me...
    my email ID is lalji_gajjar@yahoo.co.in

    ReplyDelete
  18. Anonymous12:05 PM

    hello,
    From 1st april 2010,the karnataka vat rates are changing from 4% to 5%.
    so can i know has the vat classification implemented in tally.

    ReplyDelete
  19. HI SIR.
    I M USING TALLY ERP 9,WILL U PLEASE TELL ME HOW TO MANGE TWO ITEMS WITH DIFFERENT VAT IN A SINGLE INVOICE. I M FROM PUNJAB HERE VAT IS 13.75%AND 5.5%
    AND ALSO HOW TO ROUND OF FIGURE IN TALLY 9.THANKS PLZ MAIL IT TO maaambaytraders@yahoo.com
    thanks

    ReplyDelete
  20. We are using Tally 7.2 version (c) Tally Solutions Pvt. Ltd. 1998-2005 ies 7.2 Release 1. I have created vat 5% but i can't understand how to create the same in the Vat / Tax Class. Kindly give the soloution for the same. Very urgent.

    ReplyDelete
  21. Respected sir,
    I want to know that how can i maintain vat 13.5% in tally 7.2.

    Thanking you

    Jayabrata

    ReplyDelete
  22. I dont see any actual tutorials for tally on the site . Lots of talk of tutorials but where are they ?

    ReplyDelete
  23. This comment has been removed by the author.

    ReplyDelete
  24. sir i using tally 7.2

    but my company diffrate vat class
    tally 7.2 how create new vat class
    exp-
    vat @ 13.5%
    vat @ 5%
    ohter taxes

    please inform how create vat class
    my mail pkumarpsharma@gmail.com

    thanking you
    Param kumar

    ReplyDelete
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