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

Recording a Transaction for Increase of Tax Liability

You can create a journal voucher for increase in tax liability.

To create journal voucher for increase of tax liability

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 to enable the required options in Stat Adjustment Details screen.

     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 the option Interest in Additional Details field.

o     Press Enter to save and return to voucher screen.

3.    Credit the ledger grouped under Indirect Expenses.

4.    Enter the amount in the Debit column.

5.    Debit the ledger grouped under Current Liabilities.

6.    Set the option Provide VAT Details? to Yes, and enter the relevant details.

Note: The option Provide VAT Details? is provided as per state specific requirements of VAT/CST forms and annexures. In this example, Bihar is selected as the State.

7.    Enter Narration, if required.

The journal voucher appears as shown below:

8.    Press Enter to save.

The states with Increase of Tax Liability available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Andhra Pradesh

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Assam

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Interest, Penalty, Other Dues

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Bihar

Increase of Tax Liability

Additional Tax

Debit: VAT ledger.

Credit: Ledger grouped under Indirect Expenses/Current Liabilities.

Interest

Debit: Expenses ledger.

Credit: VAT/CST ledger or ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: VAT/CST ledger or ledger grouped under Current Liabilities.

Surcharge

Debit: VAT ledger.

Credit: Ledger grouped under Indirect Expenses/Current Liabilities.

Chandigarh

Increase of Tax Liability

Sales by Hire Purchase Or Instalment Purchase

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Schedule H Items

Debit: Expenses ledger.

Credit: VAT ledger.

Chhattisgarh

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Dadra and Nagar Haveli

Increase of Tax Liability

Interest, Penalty, Other Dues

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Tax Payable on Goods Held on the Date of Cancellation of Registration

Debit: Expenses ledger.

Credit: VAT ledger.

Delhi

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Tax Payable on Goods Held on the Date of Cancellation of Registration

Debit: Expenses ledger

Credit: VAT ledger.

Gujarat

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Himachal Pradesh

Increase of Tax Liability

Interest, Penalty, Other Dues

Debit: Expenses ledger or ledger grouped under Current Liabilities.

Credit: VAT ledger.

Jharkhand

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Tax Deferred

Debit: VAT ledger.

Credit: Ledger grouped under Current Liabilities.

Karnataka

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Others

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Kerala

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Settlement Fee Payable

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Madhya Pradesh

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Maharashtra

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Late Fees

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Switch Over

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Odisha

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Puducherry

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Others

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Tax Payable on Goods Held on the Date of Cancellation of Registration

Debit: Expenses ledger.

Credit: VAT ledger.

Punjab

Increase of Tax Liability

Interest

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Others

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Other Payments

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Penalty

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Surcharge ledger.

Purchase Tax Sch. H Items

Debit: Ledger grouped under Current Assets.

Credit: VAT ledger.

Credit: Surcharge ledger.

Rajasthan

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Late Fees

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Switch Over

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Telangana

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Penalty

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Uttar Pradesh

Increase of Tax Liability

Compounding Scheme Liability

Debit: Expenses ledger.

Credit: VAT ledger.

Switch Over

Debit: Expenses ledger.

Credit: VAT ledger.

West Bengal

Increase of Tax Liability

Interest

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Interest Payable Under Section 33

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Late Fees

Debit: Expenses ledger.

Credit: Ledger grouped under Current Liabilities.

Short Paid Earlier

Debit: VAT ledger.

Credit: sales/income ledger.