https://help.tallysolutions.com/docs/te9rel60/Tax_India/VAT/Telangana/TG_Input_Tax_Adjustment_for_Purchases_From_URDs.htm

Recording Input Tax Adjustments for Purchases from URD (Telangana)

Input tax adjustments for purchases done from URD can be recorded in Tally.ERP 9 from the voucher, by making necessary stat adjustments. You can create a VAT ledger during voucher creation and specify the rate and commodity information in the VAT Details screen.

To record journal entry to account for input tax adjustment for purchase from URD

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 Tax on URD Purchase in the Nature of Adjustment field.

o     Press Enter to return to voucher.

3.    Debit a ledger created under Indirect Expenses and enter the value in the Amount field.

4.    Credit a VAT ledger created under Duties and Taxes by enabling the option Use for Purchase Tax? after selecting Type of duty/tax as VAT.

o     Enter the Rate and Assessable Value in the VAT Details screen.

    The completed screen appears as shown below:  

5.    Press Enter to save.