While carrying on business, a dealer may have excess input credit in any tax period. Under the VAT Act, there is provision to carry forward the closing balance of input credit of previous tax period to current tax period.
In case of moving from manual accounting to computerised accounting the previous month credit balance can be carried forward as Ledger Opening Balance.
Note: The value of ledger Opening Balance is captured in box 14 of Form VAT 3.
In case of company maintained on Tally.ERP 9, the input credit of previous month will be automatically carried forward and displayed in the Form VAT 3.
'Previous Month Credit Balance Carry Forward' has been shared with
