Taxation in Tally

I have covered taxation in tally.erp 9 with following four tutorial videos which I have made in youtube. In these videos, you will learn how to activate excise duty; VAT and service tax in tally.erp 9 and also learn what ledger will be created and then what voucher entries will be passed.


# First Part - Activate Taxation in Feature 11

Allow Excise duty → yes
Allow VAT → yes
Allow service Tax → yes



# Second Part - Create Ledger Accounts

VAT Input  under duties and taxes

VAT Output under duties and taxes

VAT Adjustment under duties and taxes

Purchase Account under purchase account

Sale Account under sale account

Indirect Income from Services Providing under indirect income




# Third Part- Create Inventory ledger Accounts

Voucher Types

Excise - Purchase  under purchase

Excise - Sale  under Sale


Tariff Classification  - finished product

Stock items with basic excise and education cess.



# Fourth Part - Pass the Voucher Entries


Pass the Voucher Entry

Excise - Purchase
with basic excise, education cess and VAT input

Excise -Sale
with VAT output

Receipt of Indirect Income with service tax.

Payment of Payable service tax and VAT Payable.