Exempt Purchases of Works Contract (VAT)

Exempt Purchases of Works Contract (VAT)

You can record exempt purchases of works contract by selecting the nature of transaction Purchase Exempt – Works Contract.

This nature of transaction is provided for West Bengal.

  1. Gateway of Tally > Vouchers > press F9 (Purchase).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F9 (Purchase).
  2. Enter the Supplier Invoice No. and Date.
  3. Select the party ledger in the field Party A/c name.
    As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
  4. Select the purchase ledger grouped under Purchase Accounts with the Nature of transaction set to Purchase Exempt – Works Contract.
    As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > and press Enter.
  5. Select the stock item. Enter the amount. The purchase invoice appears as shown below:
  6. Accept the screen. As always, you can press Ctrl+A to save.

The value of this transaction gets captured in the relevant fields of state-specific VAT/CST forms and annexures.

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