The duty drawback obtained can either be in the form of cash or tax credit. The cash drawback will reduce the input tax credit to be carried forward to next tax period. The credit drawback results in an increase in tax credit for the next return period.
To create a Journal Voucher for VAT Adjustment towards Duty Drawback:
Go to Gateway of Tally > Accounting Vouchers > F7: Journal > Select the appropriate Class from the Voucher Class List for e.g., VAT Class.
Select Duty Drawback taken from the Directorate in the Used for field.
Debit the ledger grouped under Current Assets from the List of Ledger Accounts.
Enter the amount in the Debit field.
Credit the Input VAT ledger.
The credit amount is automatically entered.
Enter the details in the Narration field, if required.
Press Y or Enter to accept and save.
Note: The value of journal entry made using Duty Drawback taken from the Directorate as the VAT Adjustment will be captured in Box 23 of MUSAK–19.
The transaction details will also be captured in MUSAK–18.
'Adjustment for Duty Draw back' has been shared with
