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

Input Tax Credit Admitted on Capital Goods (VAT)

You can record input tax credit admitted on capital goods by creating a journal voucher.

To avail input tax credit for purchase of capital goods

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 select the required options in the Stat Adjustment Details screen.

‚óŹ In the Stat Adjustment Details screen,

o Select VAT as the Type of duty/tax .

o Select Input Tax Credit Admitted On Capital Goods as the Nature of adjustment .

o Press Enter to save.

3. Debit VAT ledger.

4. Enter the Amount Claimed for the reporting period in the Credit Settlement Details screen.

Note: The columns in the Input Credit Details appear based on the State selected in the Company VAT Details screen. In this example, Bihar is selected as the State .

5. Credit the current assets ledger.

The journal voucher appears as shown below:

6. Press Enter to save.

T he states with Input Tax Credit Admitted On Capital Goods available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Voucher Entry

Andhra Pradesh

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Assam

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Bihar

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Chandigarh

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Dadra and Nagar Haveli

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Delhi

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Goa

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Jammu and Kashmir

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Jharkhand

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Karnataka

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Kerala

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Maharashtra

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Madhya Pradesh

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Odisha

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Puducherry

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Rajasthan

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Telangana

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Uttar Pradesh

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .