https://help.tallysolutions.com/docs/te9rel64/Tax_International/GCC_VAT/purchase_returns_under_gcc_vat.htm

Purchase Returns Under GCC VAT

You can record purchase returns against an earlier purchase transaction using a debit note.

Trading goods

Fixed assets on which input credit was claimed fully

Fixed assets on which input credit was claimed partially

Fixed assets purchased without claiming VAT

Reversing input credit claimed using journal voucher

Record purchase returns of trading goods

1. Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9 .

2. Original invoice no : E nter the invoice number of the original purchase transaction against which you are recording the purchase return.

3. In Party’s A/c Name , select the party from whom the original purchase was made.

4. Select the returned stock item and specify the return quantity.

5. Select VAT ledger.

6. Press Ctrl+A to accept.

When a debit note is recorded for return of goods or de-escalation or escalation in value of goods only nett value is displayed in the returns and not gross value. In the VAT return report you can view the gross and deductions break for the nett values by enabling the option Show break-up of nett values? under F12: Configuration .

To record purchase return of fixed assets on which tax credit was claimed fully

1. Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9 .

2. Press Ctrl+V to switch to voucher mode.

o Press F12: Configure twice, set the option Allow expenses/fixed assets in purchase vouchers? to Yes .

o Press Ctrl+A to return to voucher screen.

3. Enter Original invoice no. and Date .

4. Debit the party ledger and enter the amount.

5. Credit the fixed assets ledger (grouped under Fixed Assets and with Domestic Taxable Purchase - Capital Goods selected as the Nature of transaction ) and enter the taxable value.

The VAT Details screen appears with VAT Rate , Taxable Value and Tax Amount . The column Claim Credit will be set to Yes .

6. Credit the VAT ledger.

7. Set the option Provide VAT details? to Yes , and select the Reason for Returns .

8. Save the purchase voucher.

To record purchase return of fixed assets on which tax credit was partially claimed

1. Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9 .

2. Press Ctrl+V to switch to voucher mode.

o Press F12: Configure twice, set the option Allow expenses/fixed assets in purchase vouchers? to Yes .

o Press Ctrl+A to return to voucher screen.

3. Enter Original invoice no. and Date .

4. Debit the party ledger and enter the amount.

5. Credit the fixed assets ledger (grouped under Fixed Assets and with Domestic Taxable Purchase - Capital Goods selected as the Nature of transaction ) and enter the taxable value.

The VAT Details screen appears with VAT Rate , Taxable Value and Tax Amount . The column Claim Credit will be set to Yes . Enter the Taxable Value on which input credit was claimed.

6. Credit the VAT ledger and enter the tax credit that was partially claimed.

7. Credit the expense ledger to account for the remaining amount of tax.

8. Set the option Provide VAT details? to Yes , and select the Reason for Returns .

9. Save the purchase voucher.

To record purchase return of fixed assets on which tax credit was not claimed

1. Go to Gateway of Tally > Accounting Vouchers > Ctrl+F9 .

2. Press Ctrl+V to switch to voucher mode.

o Press F12: Configure twice, set the option Allow expenses/fixed assets in purchase vouchers? to Yes .

o Press Ctrl+A to return to voucher screen.

3. Enter Original invoice no. and Date .

4. Debit the party ledger and enter the amount.

5. Credit the fixed assets ledger (grouped under Fixed Assets and with Domestic Taxable Purchase - Capital Goods selected as the Nature of transaction ) and enter the taxable value.

In the VAT Details screen, press Backspace on Taxable Value column, and set Claim Credit to No .

6. Credit the expense ledger.

7. Set the option Provide VAT details? to Yes , and select the Reason for Returns .

8. Save the purchase voucher.

To reversing the input credit claimed on capital goods using journal voucher

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

2. Click J : Stat Adjustment .

o Select Increasing Input Tax as the Nature of adjustment .

o In the Additional Details field, select the option Capital Goods .

o Press Enter to return to journal voucher.

3. Debit the ledger grouped under Current Assets that was used during capital goods purchase to account for input credit. Enter the amount.

4. Credit the VAT ledger for the tax claimed on capital goods. Enter the VAT Rate and Taxable Value in the VAT Details screen displayed.

5. Save the voucher.

To view the breakup of purchases and returns made against it in VAT report

1. Go to Gateway of Tally > Display > Statutory Reports > VAT > VAT 201 or VAT Return .

2. Click F12: Configure and enable the option Show break-up of nett values? .

3. Click F1 : Detailed .