You can create journal vouchers for the interest payable with Increase of Tax Liability as nature of payment.
To create a Journal voucher for interest payable
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
Note: You can create a journal voucher from Gateway of Tally > Display > Statutory Reports > VAT > select the VAT or CST form.
2. Click J: Stat Adjustment. In the Stat Adjustment Details screen,
o Select VAT as Type of duty/tax.
o Select Increase of Tax Liability as the Nature of adjustment.
o Select the option Interest in Additional Details field.
o Press Enter to return to the voucher.
3. Debit the expense ledger and enter the amount in Debit column.
4. Credit VAT ledger and press Enter.
● Enter the Rate and Assessable Value in the VAT Details screen.
● Press Enter.
5. Enter the value in Credit column.
The journal voucher appears as shown below:
6. Press Enter to save.
'Interest Payable (Madhya Pradesh)' has been shared with