Type search words and press enter
"Use Edit Log for transactions/masters, and digital signature for invoices/reports with Release 2.1. Download NOW!"

Recording Input Tax Credit Admitted On Capital Goods (Tamil Nadu)

The input credit claim is VAT paid during purchase of capital goods is recorded using journal voucher. The input tax credit is claimed in three equal installments starting from purchase period and remaining in equal installments in subsequent years.

To avail input tax credit for purchase of capital goods

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 the Type of duty/tax.

o     Select Input Tax Credit Admitted On Capital Goods as the Nature of adjustment, as shown below:

o     Press Enter to save.

3.    Debit VAT ledger. The Credit Settlement Details screen is displayed.

o     Enter Amount Claimed for the reporting period in Credit Settlement Details screen.

o     Press Enter to return to voucher screen.

4.    Enter the amount in Debit column.

5.    Credit the current assets ledger.

6.    Enter Narration, if required.

The journal voucher appears as shown below:

7.    Press Enter to save.