How to record Purchase Return with Input VAT in Tally ERP 9

We can record the Purchase Returns with VAT in Tally ERP 9 Accounting Software with the help of Debit Note Voucher by taking the Purchase Returns @ 5% and Output VAT @ 5% ledgers for the computation of VAT in the Books of Accounts.

Purchase Return entry with Input VAT @ 5% in Tally ERP 9

In order to start recording the Purchase Return transaction using the Debit Note Voucher Type for Purchase Returns with VAT first we need to create the Purchase Return Ledger with VAT configuration in order to account it for VAT computation.

For the demo purpose here I have created the Purchase Returns @ 5% ledger for recording the Purchase Returns that comes under 5% VAT/Tax Class.

As similar to the VAT Purchase entry here also we need to consider the Assessable value and VAT value of the Debit Note. So, enter the Assessable amount in the Purchase Returns @ 5% ledger field and VAT amount in the Input VAT @ 5% ledger field. Here I have already created the Input VAT @ 5% Ledger under Duties & Taxes group and configured the VAT for Output VAT ledger.

Here you can use the Purchase @ 5% VAT ledger also instead of Purchase Returns @ 5% ledger and it will show the similar effect in the VAT Computation Report.