We have bought MS Angles etc., and fabricated it to few stands, trolleys etc.,

Yes.                 

How to put the entry is my question ?

Labour charges paid are in the head of Indirect Expenses - All the items bought for the process are in Stocks

These have to be removed from the respective heads/ledgers/stock items and a new fixed asset has to be created.

How to put this entry in TALLY ?

Journal Entries (Step-by-Step)

A. Raw Material Purchase (Already Passed)

B. Labour Charges Paid

C. Transfer Raw Material Consumed to Capital WIP

(Use Journal Voucher or Stock Journal)

Amount = Cost of MS Angles, Rods, Paint, Primer etc. actually consumed

D. Transfer Labour Cost to Capital WIP

E. Capitalisation to Fixed Asset (On Completion)

Asset value = Material + Labour

F. GST ITC Treatment (Important)

If ITC blocked (chairs, tables, trolleys etc.):

If ITC allowed (Plant & Machinery only):

• No reversal required

• Asset capitalised excluding GST

Capitalise the self-made stands and trolleys:

• Entry (moving materials out of stock into an asset):

– Dr Furniture & Fixtures / Plant & Equipment (Stands & Trolleys), Cr Purchases / Stock (for MS angles, rods, paint used, at cost excluding GST).

– Labour charges paid for fabrication: Dr the same asset account (not Indirect Expenses), Cr Bank / Labour payable.

– If labour was already booked to indirect expenses, pass: Dr Asset, Cr Labour charges (indirect).

• Directly attributable costs (materials, fabrication labour, transport) form the asset's cost (AS 10 / Ind AS 16 para 16). General overheads are not added.

• GST: ITC on materials used to make plant or equipment for business is allowed (not immovable property). If the stands are fixed to the building permanently, Sec 17(5)(d) could apply. Movable trolleys are fine.

• Income-tax depreciation: plant & machinery 15% (or furniture 10%, by nature). Half rate if put to use for less than 180 days.