Defining Tax Rates at Group Level (VAT)

You can define tax rates as a group level, and create a stock item under the defined VAT rate.

Create Stock Item

Create Duty Ledger

Use the defined VAT rate in Transactions

VAT/CST rates for a business dealing with multiple stock items having multiple VAT/CST rates can be configured at the group level.

To define tax rates at group level

1. Gateway of Tally > Create > type or select Stock Group> and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > Stock Group > and press Enter.
2. Enter the Name of the stock group.
3. Select the required group from Under field.
4. Enable the option Set/alter VAT details to open the VAT Details screen.
5. Specify the VAT rate for stock group.

To specify the VAT rate for the stock group

1. Select the required Classification from the list of predefined classifications, or set it to Not Applicable. If required, create the classification as per the procedure given for creating classifications.
2. Click F12 (Configure), and enable Allow commodity details.
3. Enter the Commodity Name, Commodity Code, and Sub Commodity Code.
4. Enter the Tax Rate. The VAT Details screen appears as shown below:
   
5. Press Enter to save.
6. Press Enter to save the Stock Group Creation screen.

Create a Stock Item

1. Gateway of Tally > Create > type or select Stock Item> and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > Stock Item > and press Enter.
2. Enter the Name of the stock item.
3. Select the required group from Under field.
4. Select the required unit of measurement in Units field, as shown below:
   
5. Press Enter to save.

• Create a Duty Ledger
  Create a common VAT ledger under Duties and Taxes. Click here for the detailed procedure.
• Use the defined VAT rate in a Transaction
• The VAT rate of each stock item is calculated automatically using the VAT rate defined for each stock item at group level, if the VAT ledger is selected while passing a transaction for multiple stock items.
• The VAT rate defined at group level is used to calculate VAT when passing a transaction for multiple stock items belonging to different groups, having different VAT rates.
  The Accounting Voucher Creation appears as shown below:
  
  The tax analysis shows that VAT is calculated for each stock item as per the rate defined in the group.

Note: When the tax rate is defined at group level, it will apply to all the stock items under the group.