On purchase of second-hand goods, tax credit can be claimed only to the extent of the input tax fraction = 12/112*Gross amount. The entry for claiming tax credit on purchase of second-hand goods must be recorded in a credit note.
Go to Gateway of Tally > Accounting Vouchers > Ctrl + F8: Credit Note
Select Tax Credit for Purchase of Second–hand Goods in the Used for field.
Credit the party ledger and provide the bill reference.
Debit Purchase Ledger with VAT/tax class - Purchases @ 12%. On purchase of stock item, select the stock item, enter the quantity and rate.
Debit the Input VAT ledger with the VAT/Tax class - Input VAT @ 12%.
The VAT/Tax Class appears as Input VAT @ 12%. In case the VAT/Tax Class is not defined in the master, the appropriate classification can be selected from the VAT/Tax Class list.
In the VAT Details screen enter the Assessable value of purchase.
Enter the amount as 535.72 (i.e. 5,000*12/112) tax amount in Debit field.
Enter the details in the Narration field, if required.
Press Y or Enter to accept and save.
Note: The Debit value entered for Input VAT ledger predefined with VAT/Tax class - Purchases @ 12% in credit note by selecting Tax Credit for Purchase of Second-Hand Goods in the Used for field is captured in box 14.
'Tax Credit for Purchase of Second-Hand Goods' has been shared with
