VAT Computation

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VAT Computation report displays various types of Input VAT Tax and Output VAT tax ledgers employed and transacted during voucher entry.

Tally provides a clear-cut presentation on how VAT is computed for a given period. It also provides a bird's eye view of all transaction related to VAT.

To view the VAT Computation report

Go to Gateway of Tally > Display > Statutory Reports > VAT Reports > VAT Computation.

VAT Calculations

Let us consider the following that we made, for VAT Computation:

 

1. Purchased from Creditor-1, 100 quantities of item1 at the rate of Rs.50 each.

 

The Input VAT@4% for this amount is Rs.200.

 

2. Purchased from Creditor, 100 quantities of item2 at the rate of Rs.50 each. However we applied a discount of Rs.200 here. Also, Excise tax of Rs.800 and Educational Cess of Rs.16 were levied on this.

 

Therefore we applied the InputVAT@4% on the Assessable value of Rs.5616, which is Rs.224.64.

 

Therefore total Input VAT = Rs.200 + Rs.224.64 = Rs.424.64

 

3. Sale of 50 quantities of item1@Rs.300 to Debtor-1 .

 

OutputVAT@4% = Rs.600.

 

4. Sale of 100 quantities of item @ Rs.100 each.

 

Output VAT@1%= 100

 

Therefore total Output VAT = Rs.600 + Rs.100 = Rs. 700

 

Therefore VAT Payable-> Output VAT - Input VAT = Rs.275.36

 

This is calculated automatically by Tally and the VAT Computation screen will be displayed as shown below.

VAT Computation

The Reports for the two Purchases and one Sales transaction is shown below respectively:

input 4 vat compu

Output Vat with debtors

Output Vat with debtors 4

For VAT exempted or zero rated transactions

If you have transactions that are exempted from VAT

but however want to have it displayed in the VAT Computation screen, you

have to click on the F12: Configure button and set the Show all VAT classifications to Yes.

F12 Config-

For example, in the case of Inter-State Sales, the Tax Amount column will show as NIL in the Computation screen.

Vat_with_vatclassification

Learn the effect of Purchase and Sales returns transactions in the VAT Computation and VAT Reports Screens

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