Summary of Post
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
- 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
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
- Sale ledger
- Cash ledger ( no need to create, tally create this ledger automatically)
- 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.
- Learn more How to create stock item
Enter sales Voucher with tax VAT
Go to Gateway of Tally> Accounting Vouchers> F8 sales
Enter the transactions as shown in the below image.
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.
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.