https://help.tallysolutions.com/docs/te9rel64/Tax_India/VAT/journal_vouchers/BR_Decr_Output_Tax.htm

Decrease of Output Tax (VAT)

You can record a journal voucher decrease in output tax.

To create journal voucher for decrease of output tax

1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .

Note: You can create a journal voucher from Gateway of Tally > Display > Statutory Reports > VAT > select the VAT or CST form.

2. Click J : Stat Adjustment . In the Stat Adjustment Details screen,

o Select the option VAT in the Type of duty/tax field.

o Select the option Decrease of Output Tax in the Nature of adjustment field.

o Select the option Tax Deferred in Additional Details field.

o Press Enter to save and return to voucher screen.

3. Debit the VAT ledger.

o Enter the Rate and Assessable Value in the VAT Details screen.

o Press Enter to return to voucher screen.

4. Enter the amount in the Debit column.

5. Credit the ledger grouped under Current Liabilities .

6. Set the option Provide VAT Details to Yes and enter the From and To dates, else retain it as No .

7. Enter Narration , if required. The journal voucher appears as shown below:

8. Press Enter to save.

The states with Decrease of Output Tax available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Andhra Pradesh

Decrease of Output Tax

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Assam

Decrease of Output Tax

Not Applicable

Debit: VAT ledger.

Credit: Income/sales ledger.

Reversal of Labour and Service Charges

Debit: Sales ledger.

Debit: VAT/CST ledger.

Credit: Income ledger (predefined with the nature of transaction Labour Charges Collected or Interstate Labour Charges Collected ).

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Bihar

Decrease of Output Tax

Adjustment Against Tax Liability On Subsequent Sales

Debit: VAT ledger.

Credit: Ledger grouped under Indirect Incomes / Current Liabilities .

Rebate

Debit: VAT ledger.

Credit: Income ledger.

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Tax Paid in Excess

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Chandigarh

Decrease of Output Tax

Not Applicable

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Expenses ledger.

Adjustment of Output VAT Against Notional ITC

Debit: Expenses ledger.

Credit: VAT ledger.

Cash Discount on Sales

Credit: Party ledger.

Debit: Sales ledger.

Debit: VAT ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

TDS on Works Contract

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Chhattisgarh

Decrease of Output Tax

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger

Credit: Party ledger or ledger grouped under Current Assets .

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Tax Deferred on Purchase of Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Tax Paid by Sub Contractor

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Sales ledger.

Credit: Party ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Dadra and Nagar Haveli

Decrease of Output Tax

Bad Debts Written Off

Debit: Expense ledger.

Debit: VAT ledger.

Credit: Party ledger.

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Party ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Delhi

Decrease of Output Tax

Bad Debts Written Off

Debit: VAT ledger.

Debit: Expenses ledger.

Credit: Party ledger.

Against CST

Debit: CST Ledger.

Credit: VAT ledger.

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger

Credit: Party ledger.

Reversal of Labour and Service Charges

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Expense ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Gujarat

Decrease of Output Tax

Deposit on Voluntary Registration

Debit: VAT ledger.

Debit: Additional tax ledger.

Credit: Ledger grouped under Current Assets .

Sales of Commission Agent

Debit: VAT ledger.

Debit: Additional tax ledger.

Credit: Party ledger.

TDS Adjustments

Debit: VAT ledger.

Debit: Additional tax ledger.

Credit: Ledger grouped under Current Assets .

Towards Remission u/s 41

Debit: VAT ledger.

Debit: Additional tax ledger.

Credit: Income ledger.

Haryana

Decrease of Output Tax

Tax Paid in Excess

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Himachal Pradesh

Decrease of Output Tax

Excess Paid

Debit: VAT ledger.

Credit VAT ledger.

Purchase from Exempted Unit

Debit: VAT ledger

Credit: Expenses ledger.

Purchase of Schedule-C Goods

Debit: VAT ledger.

Credit: Expense ledger.

Jharkhand

Decrease of Output Tax

Reversal of Labour and Service Charges

Debit: Sales ledger.

Debit: VAT/CST ledger.

Credit: Labour charges ledger (with nature of transaction Labour Charges Collected or Interstate Labour Charges Collected ).

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Karnataka

Decrease of Output Tax

Reversal of Labour and Service Charges

Debit: VAT ledger.

Credit: Expenses ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Tax Paid in Excess

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Kerala

Decrease of Output Tax

Advance Tax

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Liabilities .

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Madhya Pradesh

Decrease of Output Tax

Tax Deferred

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Liabilities .

Tax Exempted

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Assets .

Tax Paid in Excess

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Liabilities .

TDS Adjustments

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Assets .

Maharashtra

Decrease of Output Tax

Works Contract - Labour/other charges

Debit: VAT ledger.

Credit: Expenses ledger.

Odisha

Decrease of Output Tax

Advance Tax

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Credit note issued by seller (excess VAT in purchase)

Debit: VAT ledger.

Credit: Party ledger.

Tax Paid in Excess

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Puducherry

Decrease of Output Tax

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Party/cash ledger.

Tax on URD Purchase

Debit: VAT ledger.

Credit: Expense ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Punjab

Decrease of Output Tax

Adjustment of Output VAT Against Notional ITC

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Notional tax ledger (the option Use for Notional ITC? has to be enabled in the ledger master).

Cash Discount on Sales

Debit: Sales ledger.

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Party ledger.

TDS Adjustments

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Ledger grouped under Current Assets .

Trade Discount

Debit: Sales ledger.

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Party ledger.

Rajasthan

Decrease of Output Tax

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Telangana

Decrease of Output Tax

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Uttarakhand

Decrease of Output Tax

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Party ledger.

West Bengal

Decrease of Output Tax

Tax Deferred

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Liabilities .

or

Debit: Ledger grouped under Current Liabilities .

Credit: VAT/CST ledger.

Tax Paid in Excess

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Assets .