Gagan Sati Blogs

Creating a Company It takes a one-time configuration in Tally.ERP 9, to enable VAT. Let us take an example of the following dealer to illustrate the same. Example: M/s. National Traders is a company engaged in trading of goods both within and outside the state. On 1-4-2011, M/s. National Traders registers under the VAT Act as a dealer of goods. Step 1: Let us create a company and enable VAT Go to Gateway of Tally > F3: Company Info . > Create Company In the Company Creation screen, 1. Specify National traders as the Company Name 2. Enter the Address details 3. Select India in the Statutory Compliance for field 4. Select Tamil Nadu in the State field 5. Enter the Pin code, Telephone No., Mobile No. and E-Mail details 6. Set Enable Auto Backup to Yes if required. 7. Select Accounts with Inventory in the Maintain field 8. Enter the other required information in the Company Creation screen The completed Company Creation screen is displayed as shown:          

Value Added Tax in India The Value Added Tax (VAT) is a type of indirect tax and is one of major source of revenue to the state. The VAT system was introduced in India by replacing the General Sales Tax laws of each state. Presently in India, out of 35 States and Union Territories, 33 are following this new system of Sales Taxation. The States/Union territories which are yet to implement the VAT system are Andaman and Nicobar Islands, Nagaland and Lakshadweep. The VAT system of taxation was adopted by Indian States and Union Territories in the Year 2005 by replacing the General Sales Tax Laws with New Value Added Tax Acts and the supporting Value Added Tax Rules for proper administration and collection of Tax. Each state or union territory is having its own methods to assess the tax liability and collection methods from the dealers who fall under the purview of VAT. The Administration of VAT system was undertaken by the Commercial Taxes Department of each state along with

Statutory and Taxation Tally.ERP 9 supports the various taxes applicable in India. You can maintain accurate books of accounts and generate error-free returns by detecting the missing information in the transactions, if any, and correct them before filing returns. You can use statutory and taxation features in Tally.ERP 9 by enabling the required options in the  Company Operations Alteration  screen. To enable statutory and taxation features 1.  Go to   Gateway of Tally  >  F11: Features  >  F3: Statutory  . 2.  Enable the required options in the  Company Operation Alteration  screen as shown below: