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

Increase of Tax Liability (VAT)

You can create a journal voucher for increase in tax liability.

To create journal voucher for increase of tax liability

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 to enable the required options in Stat Adjustment Details screen.

‚óŹ In the Stat Adjustment Details screen,

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

o Select the option Increase of Tax Liability in the Nature of adjustment field.

o Select the option Interest in Additional Details field.

o Press Enter to save and return to voucher screen.

3. Credit the ledger grouped under Indirect Expenses .

4. Enter the amount in the Debit column.

5. Debit the ledger grouped under Current Liabilities .

6. Set the option Provide VAT Details? to Yes , and enter the relevant details.

Note: The option Provide VAT Details? is provided as per state specific requirements of VAT/CST forms and annexures. In this example, Bihar is selected as the State .

7. Enter Narration , if required.

The journal voucher appears as shown below:

8. Press Enter to save.

The states with Increase of Tax Liability available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Andhra Pradesh

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Assam

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Interest, Penalty, Other Dues

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Bihar

Increase of Tax Liability

Additional Tax

Debit: VAT ledger.

Credit: Ledger grouped under Indirect Expenses / Current Liabilities .

Interest

Debit: Expenses ledger.

Credit: VAT/CST ledger or ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: VAT/CST ledger or ledger grouped under Current Liabilities .

Surcharge

Debit: VAT ledger.

Credit: Ledger grouped under Indirect Expenses / Current Liabilities .

Chandigarh

Increase of Tax Liability

Sales by Hire Purchase Or Instalment Purchase

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Schedule H Items

Debit: Expenses ledger.

Credit: VAT ledger.

Chhattisgarh

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Dadra and Nagar Haveli

Increase of Tax Liability

Interest, Penalty, Other Dues

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Tax Payable on Goods Held on the Date of Cancellation of Registration

Debit: Expenses ledger.

Credit: VAT ledger.

Delhi

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Tax Payable on Goods Held on the Date of Cancellation of Registration

Debit: Expenses ledger

Credit: VAT ledger.

Gujarat

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Himachal Pradesh

Increase of Tax Liability

Interest, Penalty, Other Dues

Debit: Expenses ledger or ledger grouped under Current Liabilities .

Credit: VAT ledger.

Jharkhand

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Karnataka

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Others

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Kerala

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Settlement Fee Payable

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Madhya Pradesh

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Maharashtra

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Late Fees

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Switch Over

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Odisha

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Puducherry

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Others

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Tax Payable on Goods Held on the Date of Cancellation of Registration

Debit: Expenses ledger.

Credit: VAT ledger.

Punjab

Increase of Tax Liability

Interest

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Others

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Other Payments

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Penalty

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Purchase Tax Sch. H Items

Debit: Ledger grouped under Current Assets .

Credit: VAT ledger.

Credit: Surcharge ledger.

Rajasthan

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Late Fees

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Switch Over

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Telangana

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Uttar Pradesh

Increase of Tax Liability

Compounding Scheme Liability

Debit: Expenses ledger.

Credit: VAT ledger.

Switch Over

Debit: Expenses ledger.

Credit: VAT ledger.

West Bengal

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Interest Payable Under Section 33

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Late Fees

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities .

Short Paid Earlier

Debit: VAT ledger.

Credit: sales/income ledger.