Recording Reversal of Input Tax (Assam)

For reversal of claimed or availed input tax credit, a journal entry using Reversal of Input Tax as Nature of Adjustment can be recorded.

To record journal entry to account for reversal of input tax

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

2.     Click J: Stat Adjustment button to open the Stat Adjustment screen.

3.     Debit an expense ledger created under the group Indirect Expenses.

4.     Credit the VAT ledger created under the group Duties & Taxes with Type of duty/tax selected as VAT.

o      Enter the Rate and  Assessable Value in VAT Details screen.

o      Press Ctrl+A to accept the VAT Details screen.

    The completed screen appears as shown below:

5.     Press Enter to save.