'Practical Exercise under VAT @ VAT Tally.ERP 9

Create a new company called Aman Motors, an Automobile dealer and also a manufacturer of Automobile Spare parts. Create the following masters and VAT related transactions:

 

i. Party Ledgers

 

Ledger

Under

Maintain balances bill-by-bill

Inventory values are affected

Used in VAT Returns

Jyoti Automobiles

Sundry Creditors

Yes

No

No

Joy Autos

Sundry Creditors

Yes

No

No

Susmit & Son's

Sundry Creditors

Yes

No

No

Impact Automation

Sundry Debtors

Yes

No

No

Purchases @ 4%

Purchase Accounts

No

Yes

Yes

Sales @ 4%

Sales Accounts

No

Yes

Yes

 

ii. VAT Ledgers

 

Ledger

Under

Type of

Duty/Tax

VAT/Tax Class

Input VAT @ 4%

Duties & Taxes

VAT

Input VAT @ 4%

Output VAT @ 4%

Duties & Taxes

VAT

Output VAT @ 4%

Input VAT @ 12.5%

Duties & Taxes

VAT

Input VAT @ 12.5%

 

 

iii. Stock Items

 

Item

Under

Units

Opening

Balance

Rate

Rate of

VAT (%)

Honda Bikes

Two Wheelers

Nos

2 nos

50000

4

Honda Moped

Two Wheelers

Nos

4 nos

30000

4

Honda Engine Crank

Two Wheelers

Nos

5 nos

4000

12.5

Vertical Honing machine

Assets

Nos

Nil

Nil

4

 

 

Enter the following Transactions

 

S.No

Date

Particulars

1.

5-6-09

Purchased  from  Jyoti  Automobiles  Bangalore.  Vide  bill  no.  JA-001, Honda Bikes 10 nos at Rs. 65000 each & Honda Moped 20 nos at Rs.

32000 each, VAT @ 4% was charged additionally.

2.

7-6-09

Sold to Impact Automation Bangalore, Honda Bikes 2 nos at Rs. 75000 & Honda Moped 4 nos at Rs. 45000, all items attract 4% VAT.

3.

12-6-09

Jyoti Automobiles returned 1 no. Honda Bike to Aman Motors

4.

19-6-09

Purchased Honda moped 15 nos. at Rs. 30000 each from Unregistered dealer Joy Autos vide Bill No. JY-005

5.

26-6-09

Aman Motors purchased Vertical Honing Machine at Rs. 1872000 (VAT

@ 4%) from Susmit & Son's. Vide bill no. SS-022. On 26-5-09 Tax author- ities allowed a tax credit of Rs. 60000 to be set-off in 12 monthly instal- ments.

Hint: Enter the above entry in three transactions, first capitalize the full value in purchase voucher then pass a journal entry for the input credit allowed and finally pass a journal entry for claiming the instalment for the month.

 

S.No

Date

Particulars

6.

30-6-09

Local Purchases of 10 nos Honda Engine crank at Rs. 4000 each from

Somitel Motors and Input VAT of 12.5% was applicable. Vide bill no. SM-

033 These goods were transferred to a branch outside the state i.e to the Raipur Branch. (Remember being a manufacturing company upto 4% of Input VAT is disallowed)

Hint: Enter the above entry in three transactions, first pass a local pur- chase voucher then enter a sales invoice for Branch Transfer and finally pass the journal entry for Adjustment of Input credit on Transfers Outward

7.

30-6-09

Pass the VAT Adjustment Entry.

 
 
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