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Usually a VAT dealer avail input tax credit on his purchases.But there are purchase transactions which may not want to take credit of VAT paid through purchase bills. In such case how to record such Purchases.
This tutorial aiming for Tally ERP 9 Release 5 and above users
Purchase 100 Ltr Kerosene @ 50 / Ltr from
Activation of VAT in Tally ERP 9
F11 Features > Statutory & Taxation.
Create a purchase ledger with ‘Non Creditable Purchase – Special Goods’ as the nature of transaction.
Let’s Create a Purchase Ledger with Non creditable purchase.
Gateway of Tally >Accounts info>Ledger >Create
Name : Name the purchase ledger name.
Under : Purchase Account.
Is VAT CST Applicable : Applicable
Set/Alter VAT details : Yes
You will get a Tax/Rate details screen.
Under transaction info
Nature of transaction : Purchase Non Creditable.
Press enter and save , Accept the ledger creation screen also.
Non creditable Purchase transaction entry.
Gateway of Tally >Accounting Voucher> F9 Purchase.
Enter Purchase Voucher As Usual
Enter Supplier Invoice No
Enter Supplier Name:
Select the Purchase Ledger, we have created above.
Select the stock item, Quantity & Rate.
Select the input VAT Ledger.
VAT Report of Non creditable purchase transactions
Now Lets Check the VAT Report.
Gateway of Tally>Display>Statutory Report>VAT >Form 231 ( Maharashtra).
Tax paid on non-creditable purchases will not will be available for ITC (Input Tax Credit). Tax amount is included in the assessable value.