https://help.tallysolutions.com/docs/te9rel60/Tax_India/VAT/andhra_pradesh/AP_Refund_ITC.htm

Reversal of Input Tax (Andhra Pradesh)

Reversal of input tax can be recorded by creating a journal voucher. Use Reversal of Input Tax as the Nature of Adjustment. and debit the expense under the group Indirect Expenses.

To record journal entry to account for reversal of input tax

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 field Type of Duty/Tax.

o     Select the option Reversal of Input Tax in the Nature of Adjustment field.

3.    Press Enter to return to the voucher.

4.    Debit an expense ledger created under the group Indirect Expenses.

5.    Enter the required details in ITC claimable details screen.

6.    Credit the VAT ledger created under the group Duties & Taxes with Type of duty/tax selected as VAT.

7.    Enter the Rate, Assessable Value and Commodity Name in VAT Details screen.

The completed screen appears as shown below:

                       

8.    Press Enter to save.