Input Tax Credit Admitted On Capital Goods

To record journal entry to account for input tax credit admitted on capital goods

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

2.     Click J: Stat Adjustment button.

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

4.     Select the option Input Tax Credit Admitted On Capital Goods in the Nature of Adjustment field.

5.     Press Enter to return to the voucher.

6.     Debit a VAT ledger created under the group Duties and Taxes by enabling the option Use for Purchase Tax? after selecting Type of duty/tax as VAT.

o      Enter the rate and assessable value in the VAT Details screen.

7.     Select the purchase reference number and the party name. The settlement details are automatically displayed. The Credit Settlement Details screen appears as shown below:

8.     Press Ctrl+A to save the details and return to the voucher creation screen.

9.     Credit the ledger created under the group Current Assets and enter the value in the Amount field. The completed transaction screen appears as shown below:

10.  Press Enter to save.