Creating a Duty & Taxes Ledger in Tally.ERP 9

Tax Ledgers should be created under Duties and Taxes group which contains all tax accounts like VAT, CENVAT, Excise, Sales and other trade taxes and total liability.

To create a Tax Ledger,

Go  to Gateway of Tally > Accounts Info > Ledgers > Create



Type of Duty/Tax: This option is based on statutory compliance of company. For Indian statutory, by default, it will show the Excise and Others. Depends on features in F11: Statutory, more options will be included in the Type of Duty/Tax.

Inventory values affected: This is applicable for Companies maintaining Accounts with Inventory. Inventory allocation is required for Accounts like Sales, Purchase, Receipt note, Delivery note, etc. However, Tally.ERP 9 does not restrict you to particular accounts as you may have the need to affect inventory with accounts like Customs Duty and perhaps, direct expenses related to purchases such as Freight Inwards.

Cost Centres are applicable: Tally's concept of Cost Centres allows an additional dimension to a transaction.

You have to set Maintain Cost Centres to Yes in F11: Accounting Features, to get this option in the Ledger creation screen. If any of the transactions need to be allocated to any particular Cost Center, set this option to Yes.

Activate Interest calculation: Set this option to Yes to enable Tally.ERP 9 to calculate interest automatically based on the interest rate and style of calculation specified for this ledger account.

Use advanced parameters: The advanced parameters are particularly useful where interest rates change from time to time. Set this option to Yes to enable this.

Percentage of Calculation

The Group Duties and Taxes is used for automatic tax calculation. You need to specify the rate of tax e.g. 5%, 10%, 12.5% etc. You can use an automatic Discount calculation facility by specifying a negative percentage in this field. On entering a percentage, a new field Method of Calculation is displayed. From the Method of Calculation, you can select appropriate options to calculate the Tax/Duty.

Rounding Method

This is used to round off the duty value. By default rounding method will be Blank. Once you select rounding Method, rounding Limit sub option will be displayed. Here you can specify the round off limit.

For Example:

For Duty value 123.33 and rounding Limit is 1,

  • Downward rounding will show as 123

  • Normal rounding will show as 123

  • Upward rounding will show as 124

For Duty value 125.55 and rounding Limit is 1,

  • Downward rounding will show as 125

  • Normal rounding will show as 126

  • Upward rounding will show as 126

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Tally.ERP 9 Reference Manual LIBRARY
Installation of Tally.ERP9
Site Licensing of Tally.ERP9
Shortcut Keys in Tally.ERP9
Maintaining Company Data
Creating Masters
5a. Accounts Information [Creating Masters]
5b. Inventory Information [Creating Masters]
Voucher Entry
Reports in Tally.ERP9
Excise for Dealer
Excise for Manufacturer
Reports [ Excise for Manufacturer]
Excise for Importer
Service Tax in Tally.ERP9
Tax Collected at Source (TCS) in Tally.ERP9
Tax Deducted at Source (TDS) in Tally.ERP9
Value Added Tax (VAT) in Tally.ERP9
Central Sales Tax (CST) in Tally.ERP9
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