Tax adjustment required due to decrease in input tax can be recorded by creating a journal voucher with the Nature of adjustment as Decrease of Input Tax.
To create journal voucher for decrease of input tax
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
2. Click J: Stat Adjustment. In the Stat Adjustment Details screen,
o Select the option VAT in the Type of duty/tax field.
o Select the option Decrease of Input Tax in the Nature of adjustment field.
o Press Enter to save, and return to voucher screen.
3. Debit the CST ledger.
o Enter the Rate and Assessable Value in the VAT Details screen.
o Press Enter to return to voucher screen.
4. Enter the amount in the Debit column.
5. Credit the VAT ledger.
o Enter the Rate and Assessable Value in the VAT Details screen.
o Press Enter to return to voucher screen.
6. Set the option Provide VAT Details to Yes and enter the From and To dates, else retain it as No.
Note: The option Provide VAT Details is provided as per state specific requirements of VAT/CST forms and annexures. In this example, the State is selected as Bihar.
7. Enter Narration, if required. The journal voucher appears as shown below:
8. Press Enter to save.
'Decrease of Input Tax' has been shared with
