How to create VAT Ledger in Tally

How to create VAT Ledger in Tally?

Normally you will be create Four Type of Ledgers for VAT Transactions.

Purchase Ledgers
Sales Ledgers
Input VAT Ledgers
Output VAT Ledgers

Create Purchase Ledgers: Purchase Leger creation is based on your company requirements. For Example, if your company purchased material 5% VAT and 14.5% VAT, then you will be create two types of Purchase Ledgers. (i.e: Purchases 5% & Purchases 14.5%).

Gateway of Tally > Accounts Info. > Ledgers > Create

> Enter Ledger Name as Purchases 5%
> In the Under field, select Purchase Accounts from the List of Groups.
> Set the field Used in VAT Returns to Yes
> From the VAT/TAX Class, Select Purchases@5%
> Press Ctrl+A, to save the Ledger.

In the same way create another Ledger Purchase 14.5%

Create Sales Ledgers: Sales Leger creation is based on your company requirements. For Example, if your company sale Goods  5% VAT and 14.5% VAT, then you will be create two Sales Ledgers. (i.e: Sales 5% & Sales 14.5%)

Gateway of Tally > Accounts Info. > Ledgers > Create

> Enter Ledger Name as Sales 5%
> In the Under field, select Sales Accounts from the List of Groups.
> Set the field Used in VAT Returns to Yes
> From the VAT/TAX Class, Select Sales@5%
> Press Ctrl+A, to save the Ledger. 

In the same way create another Ledger Sales 14.5%

Create Input VAT Ledgers: In the above example, your have Purchased two VAT Rates Purchases, i.e, Purchases 5% & Purchases 14.5%, So, create Two Input VAT Ledgers.

1) Input VAT 5%
2) Input VAT 14.5%
  
Gateway of Tally > Accounts Info > Ledgers > Create

> Enter Ledger Name as Input VAT 5%
> In the Under field, Select Duties & Taxes 
> In the Type of Duty/Tax filed, Select VAT
> In the VAT Sub Type field, Select Input VAT
> In the VAT/TAX Class filed, Select Input VAT @ 5%
> In the Rounding Method filed, Select Not Applicable
> Press Ctrl+A, to save the Ledger.

In the same way create another Ledger Input VAT 14.5%

Create Output VAT Ledgers: In the above example, your have Sales two VAT Rates Sales, i.e, Sales 5% & Sales 14.5%, So, create Output VAT Ledgers.

1) Output VAT 5%
2) Output VAT 14.5%
  
Gateway of Tally > Accounts Info > Ledgers > Create

> Enter Ledger Name as Output VAT 5%
> In the Under field, Select Duties & Taxes 
> In the Type of Duty/Tax filed, Select VAT
> In the VAT Sub Type field, Select Output VAT
> In the VAT/TAX Class filed, Select Output VAT @ 5%
> In the Rounding Method filed, Select Not Applicable
> Press Ctrl+A, to save the Ledger.

In the same way create another Ledger Output VAT 14.5%