Recording Input Tax Adjustments for Purchases from URD (Telangana)

To record journal entry to account for input tax adjustment for purchase from URD

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

2.     Click J: Stat Adjustment button.

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 return to voucher.

3.     Debit a ledger created under Indirect Expenses and enter the value in the Amount field.

4.     Credit a VAT ledger created under 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.

    The completed screen appears as shown below:  

5.     Press Enter to save.