Record Works Contract Purchases in TallyPrime: 7 Easy Steps

Here’s a detailed guide on recording works contract purchases in TallyPrime:

1. Choose the Transaction Type:

  • Identify the nature of the work contract:
    • Purchase – Works Contract: Use this option for works contracts within your state (intra-state).
    • Interstate Purchase – Works Contract: Choose this option for works contracts across states (inter-state).

2. Create Purchase Voucher:

  • Go to Gateway of Tally > Accounting Vouchers.
  • Select F9: Purchase for intra-state or F10: Other Vouchers > Interstate Purchase – Works Contract for inter-state contracts.

3. Enter Basic Information:

  • Provide the Date, Supplier Invoice No., and select the Party A/c Name (supplier’s ledger).

4. Set Taxability:

  • Press F12: Configure.
  • In the Additional Information window, access Set/Alter Tax Details.
  • Choose Purchase – Works Contract or Interstate Purchase – Works Contract as the Nature of Transaction.

5. Add Purchase Details:

  • Select the appropriate Purchase Ledger under Particulars.
  • Enter the Amount of the contract (excluding tax).
  • If applicable, break down the amount into specific categories like material, labor, etc.

6. Specify GST Details:

1. Intra-state Purchases:

  • Select the applicable CGST and SGST/UTGST rates.
  • TallyPrime will automatically calculate the tax amounts.

2. Inter-state Purchases:

  • Select the IGST rate.
  • Enter the IGST amount manually based on the purchase value and rate.

7. Finalize the Voucher:

  • Select the Payment Ledger if you’ve made a payment.
  • For credit purchases, choose the relevant Outstanding Liability Ledger.
  • Press Enter to save the voucher.

Additional Notes while Recording Works Contract Purchases in TallyPrime:

  • Ensure the chosen purchase ledger has the Nature of Transaction set correctly in its master configuration.
  • Verify that the applicable tax rates are set in TallyPrime’s statutory details.
  • Maintain proper documentation for works contracts, including invoices, agreements, and supporting bills.
  • Consult a qualified accountant for specific guidance on recording works contracts based on your business nature and applicable regulations.

Remember, it’s crucial to identify the correct transaction type (intra-state or inter-state) and choose the appropriate tax rates for accurate recording and compliance.


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