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

Increasing Input Tax (VAT)

You can record a transaction for increase of input tax in journal voucher.

To account for increase in input 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 Type of duty/tax as VAT .

o Select Increasing Input Tax , as the Nature of adjustment .

Note: Based on the selection made for Nature of Adjustments , the Additional Details option either appears or disappears.

o Press Ctrl+A to return to the voucher.

3. Debit the expense ledger and enter the amount.

4. Credit the input VAT ledger. Enter the tax Rate and Assessable Value in VAT Details screen. The journal voucher appears as shown below:

5. Press Enter to save.

The states with Increasing Input Tax available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Assam

Increasing Input Tax

Set off for tax paid under Section 10 (1A) Sales

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Chandigarh

Increasing Input Tax

Installment of Input Tax on Stock Held on Appointed  Day

Debit: Expenses ledger.

Credit: VAT ledger.

Chhattisgarh

Increasing Input Tax

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Debit: VAT ledger (in the Rate field of VAT Details screen, the tax rate should be specified as 1%).

Credit: Expenses ledger.

Dadra and Nagar Haveli

Increasing Input Tax

Change in Use of Goods, for Purchase for Which Credit Allowed

Debit: VAT ledger.

Credit: Purchase ledger.

Opening Stock

Debit: VAT ledger.

Credit: Purchase ledger.

Other Adjustments

Debit: Purchase ledger.

Debit: VAT ledger.

Credit: Party ledger.

Switch Over

Debit: VAT ledger.

Credit: Purchase ledger.

Tax Credit for Purchase of Second-Hand Goods

Debit: VAT ledger.

Credit: Purchase ledger.

Transitional Opening Stock

Debit: VAT ledger.

Credit: Purchase ledger.

Delhi

Increasing Input Tax

Change in Use of Goods, for Purchase for Which Credit Allowed

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Not Applicable

Debit: VAT ledger.

Credit: Expense ledger.

Opening Stock

Debit: VAT ledger.

Credit: Purchase ledger.

Switch Over

Debit: VAT ledger.

Credit: Purchase ledger.

Tax Credit for Purchase of Second-Hand Goods

Debit: VAT ledger.

Credit: Purchase ledger.

Other Adjustments

Debit: Purchase ledger.

Debit: VAT ledger.

Credit: Party ledger.

Balance Tax Credit on Right to Use Goods

Debit: Purchase ledger.

Debit: VAT ledger.

Credit: Expenses ledger.

Goa

Increasing Input Tax

Entry Tax Paid

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

ITC on Net Present Value Scheme

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Opening Stock

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Himachal Pradesh

Increasing Input Tax

Opening Stock

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Jharkhand

Increasing Input Tax

Attributable Input Tax Towards Exempted Sales

Debit: Expenses ledger.

Credit: VAT ledger.

Opening Stock

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Kerala

Increasing Input Tax

Adjustment Against Arrears

Debit: Ledger grouped under Current Liabilities .

Credit: VAT ledger.

Madhya Pradesh

Increasing Input Tax

Others

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities .

Maharashtra

Increasing Input Tax

Tax Credit Not Claimed on Goods Return

Debit: VAT ledger.

Credit: Purchase ledger.

Odisha

Increasing Input Tax

Adjustment of ITC Towards Transfer Rights

Debit: Expenses ledger.

Credit: VAT ledger.

Adjustments Towards Transfer Rights - Previous Return

Debit: Expenses ledger.

Credit: VAT ledger.

Debit note issued to buyer (insufficient VAT in sales)

Debit: VAT ledger.

Credit: Party ledger.

Opening Stock

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Refund disallowed

Debit: VAT ledger.

Credit: Expense/income ledger.

Puducherry

Increasing Input Tax

Opening Stock

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets / Purchase Accounts .

Other Adjustments

Debit: Purchase ledger.

Debit: VAT ledger.

Credit: party/cash ledger.

Switch Over

Debit: VAT ledger.

Credit: Purchase ledger.

Tax Adjustment Towards Transfer of Right to Use

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Tax Credit of Purchase of Second-Hand Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets / Purchase Accounts .

Punjab

Increasing Input Tax

Goods Received Back After Job Work

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Current Assets ledger.

Rajasthan

Increasing Input Tax

Opening Stock

Debit: VAT ledger.

Credit: Purchase ledger.

Uttarakhand

Increasing Input Tax

Opening Stock

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Uttar Pradesh

Increasing Input Tax

Opening Stock

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

West Bengal

Increasing Input Tax

Opening Stock

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Short Claimed Earlier

Debit: VAT ledger.

Credit: Purchase/expense ledger.