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

Tax on Purchase from Unregistered Dealers (VAT)

You can account for tax on purchases from unregistered dealers by creating a journal voucher.

To account for tax liability on purchase from unregistered dealers

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

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 Tax on URD Purchase in the Nature of adjustment field.

o Press Enter to save and return to the voucher screen.

3. Debit the ledger created under the group Indirect Expenses and enter the amount.

4. Credit the VAT ledger.

o Enter the Rate , Assessable Value , and Commodity Code , and select the Commodity name of the item purchased in the VAT Details screen. The VAT Details screen appears as shown below:

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

o Press Enter to return to voucher screen.

The journal voucher appears as shown below:

5. Press Enter to save.

T he states with Tax on URD Purchase available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Andhra Pradesh

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Assam

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Bihar

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Chandigarh

Tax on URD Purchase

---

Debit: Purchase ledger.

Credit: VAT ledger.

Chhattisgarh

Tax on URD Purchase

---

Debit: Ledger grouped under Current Assets .

Credit: VAT ledger.

Gujarat

Tax on URD Purchase

---

Debit: Ledger grouped under Current Assets .

Credit: VAT ledger.

Credit: Additional tax ledger.

Haryana

Tax on URD Purchase

Purchase at Lower Rate

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase at Lower Rate - Declared Goods

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase Without Payment of Tax

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase Without Payment of Tax - Declared Goods

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Himachal Pradesh

Tax on URD Purchase

Not Applicable

Debit: Expense ledger.

Credit: VAT ledger.

Purchase of Schedule-C Goods

Debit: Expense ledger.

Credit: VAT ledger.

Jammu and Kashmir

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Jharkhand

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Karnataka

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Kerala

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Madhya Pradesh

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Odisha

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets .

Puducherry

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Punjab

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

credit: Surcharge ledger.

Rajasthan

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Telangana

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Uttar Pradesh

Tax on URD Purchase

---

Debit: Purchase ledger.

Credit: VAT ledger.

West Bengal

Tax on URD Purchase

---

Debit: Expense/purchase ledger.

Credit: VAT ledger.