https://help.tallysolutions.com/docs/te9rel60/Tax_India/VAT/journal_vouchers/BR_Decr_Output_Tax.htm

Recording a Transaction for Decrease of Output Tax

You can record a journal voucher decrease in output tax.

To create journal voucher for decrease of output 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 Type of duty/tax field.

o     Select the option Decrease of Output Tax in the Nature of adjustment field.

o     Select the option Tax Deferred in Additional Details field.

o     Press Enter to save and return to voucher screen.

3.    Debit the VAT ledger.

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

o     Press Enter to return to voucher screen.

4.    Enter the amount in the Debit column.

5.    Credit the ledger grouped under Current Liabilities.

6.    Set the option Provide VAT Details to Yes and enter the From and To dates, else retain it as No.

7.    Enter Narration, if required. The journal voucher appears as shown below:

8.    Press Enter to save.

The states with Decrease of Output Tax available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Andhra Pradesh

Decrease of Output Tax

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Assam

Decrease of Output Tax

Not Applicable

Debit: VAT ledger.

Credit: Income/sales ledger.

Reversal of Labour and Service Charges

Debit: Sales ledger.

Debit: VAT/CST ledger.

Credit: Income ledger (predefined with the nature of transaction Labour Charges Collected or Interstate Labour Charges Collected).

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Bihar

Decrease of Output Tax

Adjustment Against Tax Liability On Subsequent Sales

Debit: VAT ledger.

Credit: Ledger grouped under Indirect Incomes/Current Liabilities.

Rebate

Debit: VAT ledger.

Credit: Income ledger.

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Tax Paid in Excess

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Chandigarh

Decrease of Output Tax

Not Applicable

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Expenses ledger.

Adjustment of Output VAT Against Notional ITC

Debit: Expenses ledger.

Credit: VAT ledger.

Cash Discount on Sales

Credit: Party ledger.

Debit: Sales ledger.

Debit: VAT ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

TDS on Works Contract

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Chhattisgarh

Decrease of Output Tax

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger

Credit: Party ledger or ledger grouped under Current Assets.

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Tax Deferred on Purchase of Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Tax Paid by Sub Contractor

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Sales ledger.

Credit: Party ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Dadra and Nagar Haveli

Decrease of Output Tax

Bad Debts Written Off

Debit: Expense ledger.

Debit: VAT ledger.

Credit: Party ledger.

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Party ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Delhi

Decrease of Output Tax

Bad Debts Written Off

Debit: VAT ledger.

Debit: Expenses ledger.

Credit: Party ledger.

Against CST

Debit: CST Ledger.

Credit: VAT ledger.

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger

Credit: Party ledger.

Reversal of Labour and Service Charges

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Expense ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Gujarat

Decrease of Output Tax

Deposit on Voluntary Registration

Debit: VAT ledger.

Debit: Additional tax ledger.

Credit: Ledger grouped under Current Assets.

Sales of Commission Agent

Debit: VAT ledger.

Debit: Additional tax ledger.

Credit: Party ledger.

TDS Adjustments

Debit: VAT ledger.

Debit: Additional tax ledger.

Credit: Ledger grouped under Current Assets.

Towards Remission u/s 41

Debit: VAT ledger.

Debit: Additional tax ledger.

Credit: Income ledger.

Haryana

Decrease of Output Tax

Tax Paid in Excess

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Himachal Pradesh

Decrease of Output Tax

Excess Paid

Debit: VAT ledger.

Credit VAT ledger.

Purchase from Exempted Unit

Debit: VAT ledger

Credit: Expenses ledger.

Purchase of Schedule-C Goods

Debit: VAT ledger.

Credit: Expense ledger.

Jharkhand

Decrease of Output Tax

Reversal of Labour and Service Charges

Debit: Sales ledger.

Debit: VAT/CST ledger.

Credit: Labour charges ledger (with nature of transaction Labour Charges Collected or Interstate Labour Charges Collected).

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Karnataka

Decrease of Output Tax

Reversal of Labour and Service Charges

Debit: VAT ledger.

Credit: Expenses ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Tax Paid in Excess

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Kerala

Decrease of Output Tax

Advance Tax

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Liabilities.

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Madhya Pradesh

Decrease of Output Tax

Tax Deferred

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Liabilities.

Tax Exempted

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Assets.

Tax Paid in Excess

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Liabilities.

TDS Adjustments

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Assets.

Maharashtra

Decrease of Output Tax

Works Contract - Labour/other charges

Debit: VAT ledger.

Credit: Expenses ledger.

Odisha

Decrease of Output Tax

Advance Tax

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Credit note issued by seller (excess VAT in purchase)

Debit: VAT ledger.

Credit: Party ledger.

Tax Paid in Excess

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Puducherry

Decrease of Output Tax

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Party/cash ledger.

Tax on URD Purchase

Debit: VAT ledger.

Credit: Expense ledger.

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Punjab

Decrease of Output Tax

Adjustment of Output VAT Against Notional ITC

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Notional tax ledger (the option Use for Notional ITC? has to be enabled in the ledger master).

Cash Discount on Sales

Debit: Sales ledger.

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Party ledger.

TDS Adjustments

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Ledger grouped under Current Assets.

Trade Discount

Debit: Sales ledger.

Debit: VAT ledger.

Debit: Surcharge ledger.

Credit: Party ledger.

Rajasthan

Decrease of Output Tax

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Telangana

Decrease of Output Tax

TDS Adjustments

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Uttarakhand

Decrease of Output Tax

Other Adjustments

Debit: Sales ledger.

Debit: VAT ledger.

Credit: Party ledger.

West Bengal

Decrease of Output Tax

Tax Deferred

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Liabilities.

or

Debit: Ledger grouped under Current Liabilities.

Credit: VAT/CST ledger.

Tax Paid in Excess

Debit: VAT/CST ledger.

Credit: Ledger grouped under Current Assets.