https://help.tallysolutions.com/docs/te9rel60/Tax_India/VAT/Karnataka/Sales_Ret.htm

Sales Returns (Karnataka)

Create a credit note for sales returns of taxable goods using this procedure.

To create a credit note for taxable goods

1.    Go to Gateway of Tally > Accounting Vouchers > Ctrl+F8.

2.    Enter the reference number in the Ref. field.

3.    Select the Party’s A/c Name from the List of Ledger Accounts.

4.    Enter the required details in Party Details screen.

5.    Select the common sales ledger in Sales Ledger field.

6.    Select the required taxable stock item.

7.    Enter the Quantity and Rate.

8.    Select the required common VAT ledger. The ledger must be grouped under Duties & Taxes in which the options:

o     Type of duty/tax is set to VAT.

o     Percentage of Calculation (eg 5)? is set to 0.

9.    Set the option Provide VAT Details? to Yes/No as required.

The credit note appears as shown below:

10.  Press Enter to save.