If there is an increase in tax liability for Telangana as an interest, you can record such increases in Tally.ERP 9 to reflect the updated values in your company records.
To record journal entry to account 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 the option VAT in the Type of Duty/Tax field.
o Select the option Increase of Tax Liability in the Nature of Adjustment field.
o Select Interest for the option Additional Details.
3. Press Enter to return to voucher.
4. Debit an expense ledger created under Indirect Expenses with option Is VAT/CST Applicable? set to Not Applicable.
5. Credit the ledger created under Current Liabilities. The completed screen appears as shown below:
6. Press Enter to save.
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