Entry tax
This query is : Resolved
26 September 2016
I have given entry tax on purchase of goods.Under what head in tally will I take it?
21 July 2024
In Tally ERP 9, you can record the Entry Tax paid on the purchase of goods under an appropriate ledger account. Here’s how you can set it up and record the transaction:
### Setting Up the Ledger
1. **Create a Ledger for Entry Tax:**
- Go to Gateway of Tally > Accounts Info > Ledgers > Create.
- Enter the name of the ledger, e.g., "Entry Tax Paid".
- Under "Under Group", select an appropriate group like "Duties & Taxes" or "Indirect Expenses".
- Set the type of ledger as "Duties & Taxes".
- Save the ledger.
### Recording the Entry Tax Payment
2. **Record the Transaction:**
- Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
- Enter the purchase voucher as usual, including details such as supplier's invoice number, date, party's name, and the items purchased.
- In the accounting voucher, when you enter the purchase amount, Tally will automatically calculate the Entry Tax amount if you have set up the tax rate and configuration correctly.
- After entering the purchase details, include the Entry Tax amount separately in the voucher:
- Debit: Purchase Account (for the total amount excluding Entry Tax)
- Debit: Entry Tax Paid (for the Entry Tax amount)
- Credit: Supplier’s Ledger (for the total amount including Entry Tax)
### Additional Tips:
- **Configuring Tax Rates in Tally:**
Ensure that you have configured the tax rates applicable for Entry Tax in Tally ERP 9 under the "Statutory & Taxation" features. This includes setting up the tax rate, calculation method, and linking it to appropriate ledger accounts.
- **Reporting and Compliance:**
Regularly review your tax entries and ensure they comply with local tax laws and regulations. Tally ERP 9 provides various reports to help you monitor taxes paid and due.
By following these steps, you can accurately record Entry Tax paid on purchases in Tally ERP 9 and maintain proper accounting records for your business. If you encounter specific issues or need further customization, consulting with a Tally expert or a tax advisor would be beneficial.
### Setting Up the Ledger
1. **Create a Ledger for Entry Tax:**
- Go to Gateway of Tally > Accounts Info > Ledgers > Create.
- Enter the name of the ledger, e.g., "Entry Tax Paid".
- Under "Under Group", select an appropriate group like "Duties & Taxes" or "Indirect Expenses".
- Set the type of ledger as "Duties & Taxes".
- Save the ledger.
### Recording the Entry Tax Payment
2. **Record the Transaction:**
- Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
- Enter the purchase voucher as usual, including details such as supplier's invoice number, date, party's name, and the items purchased.
- In the accounting voucher, when you enter the purchase amount, Tally will automatically calculate the Entry Tax amount if you have set up the tax rate and configuration correctly.
- After entering the purchase details, include the Entry Tax amount separately in the voucher:
- Debit: Purchase Account (for the total amount excluding Entry Tax)
- Debit: Entry Tax Paid (for the Entry Tax amount)
- Credit: Supplier’s Ledger (for the total amount including Entry Tax)
### Additional Tips:
- **Configuring Tax Rates in Tally:**
Ensure that you have configured the tax rates applicable for Entry Tax in Tally ERP 9 under the "Statutory & Taxation" features. This includes setting up the tax rate, calculation method, and linking it to appropriate ledger accounts.
- **Reporting and Compliance:**
Regularly review your tax entries and ensure they comply with local tax laws and regulations. Tally ERP 9 provides various reports to help you monitor taxes paid and due.
By following these steps, you can accurately record Entry Tax paid on purchases in Tally ERP 9 and maintain proper accounting records for your business. If you encounter specific issues or need further customization, consulting with a Tally expert or a tax advisor would be beneficial.
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