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Recording Reduction of Tax Liability (West Bengal)

The Nature of Adjustment, Reducing Tax Liability is selected with relevant additional details to record journal voucher for adjusting reduction of tax liability

To account for reduction in tax liability for adjustment with TDS

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 Type of duty/tax as VAT.

o     Select Reducing Tax Liability, as the Nature of adjustment.

o     Select the Adjusting with TDS in Additional Details section.

Note: Based on the selection made for Nature of Adjustments, the Additional Details option either appears or disappears.

o     Press Ctrl+A to return to the voucher.

3.    Debit the expenses ledger, and enter the tax amount.

4.    Credit the output VAT ledger. Enter the tax Rate, Assessable Value, Commodity name in VAT Details screen. The journal voucher appears as shown below:

5.    Press Enter to save.