How to generate VAT Computation report in Tally for filing returns

The VAT Dealers can generate monthly VAT Computation Report to trace out the VAT Liability or VAT Refundable amount and can submit a summary report of Purchases and Sales pertaining to that month to the Commercial Taxes Department.

VAT Computation Report

In the manual accounting processing we need to check all the Invoices, Debit and Credit Notes physically and need to calculate the VAT amount against the Assessable Value. If you configured VAT Accounting in Tally Business Software, application will process the Sales Tax based on the Accounting Vouchers passed in your Company.

VAT Computation report will show detailed information about all the Purchases and Sales in respect of VAT rates. In order to generate the report

1. Choose Display option in Gateway of Tally screen.
2. Select Statutory Report.
3. VAT
4. VAT Computation

In the report we can see Sales and Purchases pertaining to a specific period. Output Tax will be displayed under Sales and Input Tax will be displayed under Purchases. The Assessable Value and Tax amount for various VAT Rates are displayed. If Input Credit of the previous period is available then it will be added to the Input Tax.

If the Total Output Tax exceeds the Total Input Tax then Tax Payable will be shown at the bottom of the report otherwise Refundable Tax amount will be shown.