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How to Prepare Tax Invoice in Tally ERP 9

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By printing an invoice in Tally ERP 9 gives you a default title ‘Invoice’. You may want to print an invoice titled Tax Invoice to comply VAT Rules. In such cases Tally allow you to print the invoice with desired title. For some states There are specific forms for creating VAT invoices. Like Form 36, Form 8. In such case you cannot use default tally invoices. You have to customize the Invoice Format to get printed on the form prescribed by the commercial tax department. Here I am just illustration How to print a Tax bill titled ‘Tax Invoice‘ and other relevant details which is useful for states who have not specific format for Tax Invoice like Maharashtra.

Recommend Read : What is tax Invoice?

Lets take the following  two example  Sales transaction with VAT for printing a TAX invoice

  1. On 01-08-2016 ABC Ltd sold 10 No DVD @ 3500 to National Electronics to a registered dealer.VAT applicable is 5% .Prepare a TAX Invoice.

Step 1 : Creating TAX INVOICE Voucher Type

Lets create a new voucher type for recording & printing of a VAT tax invoice.

Go to :  Gateway of Tally>Accounts Info> Voucher type>Create

In the voucher type creation screen do as instructed below.

Name: Give a name of your wish that everybody can understand while selecting voucher type during voucher entry . Let’s name it ‘VAT Invoice’.

Select type of voucher: Sales

Print After saving: Yes this will help you to print immediately after saving a voucher.

Default title to print on Invoice: Here type the name of title to be printed on the Header of Invoice. Lets Print “TAX INVOICE”. Type tax invoice.

Use as tax Invoice: Yes

Sales voucher type for tax invoice printing

Save and accept the screen by pressing enter key or shot cut key Ctrl+A .

To enter sales voucher of the above example we need the following 

Activate VAT in tally erp 9

Gateway of Tally>F11 Features >Statutory & Taxation

Enable Value Added Tax ( VAT) : Yes ,accept and save the screen.

Learn More about how to activate VAT 

Creating a ledgers 

  1. Sale ledger
  2. Cash ledger ( no need to create, tally create this ledger automatically)
  3. VAT 5%  Ledger

refer below posts for creating Ledgers & stock items.

Create the above stock items and ledgers.

Create stock item DVD

Gateway of Tally> Inventory Info>Stock Item> Create

In the stock item creation screen enable the following options.

VAT Applicable: Applicable

set/alter VAT Details: Yes & Set tax rate 5% % save.

Enter sales Voucher with tax VAT

Go to Gateway of Tally> Accounting Vouchers> F8 sales

Tally will ask which voucher type to be used in this sale entry.Select the tax invoice sales voucher type

Enter the transactions as shown in the below image.

Learn How to enter sales transaction with VAT.

sales voucher with VAT

 

Press enter and save to accept the screen.

Print the sales voucher as tax Invoice or VAT Invoice

Access the voucher in alteration mode, or just press pageUp button immediately after saving the sales voucher.now click print button or use short cut key Alt+P. The Invoice will be printed as mentioned in the voucher type we have created above.

Learn : Terms&Conditions used in Tax invoice

Tax Invoice format in Tally ERP 9

Read this: Tax Invoice with your own terms & conditions & declaration in Tally ERP 9.

This is what we can do with Tally ERP 9 Default Invoice format to comply with VAT. If you want more customized solution you can approach a tally partner near you.

Comments (2)

  • Sir
    I have been reading your posts on tally concepts. Your simple explanation of many things is really benefiting persons who are non-accounts background. Please accept my thanks for your work.
    Sir kindly explain what is the diference between entering a purchase transaction in voucher mode and Invoice mode. is it true that entering a purchase transaction in voucher mode results in not showing ‘bills payable’ under outstanding reports. I have this doubt.
    Kindly clarify and help me to understand
    Krishna

    Reply
  • My query is tax invoice is purchase invoice or sales invoice

    Reply

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