How to enable Value Added Tax and CST (Sales Tax) in Tally ERP 9

Every business organization, who deals with Sale of Goods needs to pay off the VAT to the State Government as per VAT rules. So, you must know the amount of VAT Tax to pay off against the Assessable Value that you compute for a specific period. You can start this article after reading About VAT article if you are the beginner otherwise continue to read how to start VAT Accounting in Tally ERP 9 Accounting Software.

VAT is enabling in Tally ERP 9

It is the most important thing to enable Statutory & Taxation features of the Company to effect the VAT automatic calculation in the ERP Software. In order to start Statutory Accounting of Sales Tax in Tally Accounting Software first, we need to enable the Value Added Tax (VAT) in the Statutory & Taxation features of the Company.

In order to successfully configure Sales Tax in ERP Software we need to update certain information of the Statutory & Taxation features of the Company. Here, I am going to configure the Value Added Tax settings for the Company where the TIN number has been received from Andhra Pradesh state.

1. In Gateway of Tally screen click on F11: Features button in Button Area.
2. In Company Features menu choose Statutory & Taxation option.
3. Then you will be seeing Company Operations Alteration screen.
4. Set Yes option for Enable Value Added Tax (VAT) under Statutory & Taxation section. As well set Yes option for Set/Alter VAT Details option.
   • In Company VAT Details screen select the State from which state the TIN Certificate was received. Based on the selection of the state, Tally software will ask your VAT and CST Registration information.
   • For the Type of Dealer option select your dealership type from Types of VAT Dealer list.
   • Enter the date from which the VAT provisions are applicable for the dealer in the Regular VAT Applicable From field.
   • As well you can add additional details about your Business and concerned Commercial Tax Office under Additional Information section in the screen. After you have finished updating the Additional Information you will be navigated again to Company Operations Alteration screen.
5. Under Tax Information section in the Statutory & Taxation features provide your TIN number and CST Number in the corresponding fields.

If you are enabling VAT for a state other than Andhra Pradesh state you will be seeing other options in the Company VAT Details screen.

And finally accept the Statutory & Taxation features in the Company Operations Alteration screen. Now your Company is enabled for VAT Accounting in Tally Software and start recording your accounting for automatic VAT Reporting and VAT Computation.