Purchase of Works Contract (VAT)

Record purchase works contract details in vouchers with Purchase – Works Contract as the Nature of Transaction. Deduction can be claimed for tax calculation.

This nature of transaction is provided for Andhra Pradesh, Assam, Bihar, Chhattisgarh, Dadra & Nagar Haveli and Daman & Diu, Delhi, Goa, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Puducherry, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal.

1. Gateway of Tally > Vouchers > press F9 (Purchase).
   Alternatively, press Alt+G (Go To) > Create Voucher > press F9 (Purchase). 
2. Enter 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 – Works contract.
   

   Note: If common purchase ledger is being used, press F12 Configure in the invoice, and set the option Modify Tax Rate Details for VAT to Yes. Select Purchase - Works Contract in the VAT Classification Details screen.

   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 Quantity and Rate. The amount is auto calculated.
6. Press Enter.
7. Enter the required details in Deduction Claimed for Tax Calculation screen. The Deduction Claimed for Tax Calculation screen appears as shown below:
   
8. Press Enter to save and return to the purchase invoice.
9. Select the VAT ledger.
   

   Note: Based on the state-specific tax structure, select cess/surcharge/additional tax ledger after VAT ledger.

10. To view the VAT – Tax Analysis screen, press Ctrl+O (Related Reports) > select Voucher under Details of > and type or select VAT – Tax Analysis.
    

    Note: If you are on TallyPrime Release 1.1.3 or earlier, follow the step:
    To view the VAT – Tax Analysis screen, press Ctrl+I (More Details) > select Voucher under Details of > and type or select VAT – Tax Analysis.

11. Press Alt+F5 (Detailed) to view in detailed mode. The VAT – Tax Analysis screen appears as shown below:
    
12. Pres Esc to return to purchase invoice screen. The purchase invoice appears as shown below:
    
13. Accept the screen. As always, you can press Ctrl+A to save.