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

Recording a Transaction for Input Tax Credit Admitted on Capital Goods

You can record input tax credit admitted on capital goods by creating a journal voucher.

To avail input tax credit for purchase of capital goods

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 select the required options in the Stat Adjustment Details screen.

     In the Stat Adjustment Details screen,

o     Select VAT as the Type of duty/tax.

o     Select Input Tax Credit Admitted On Capital Goods as the Nature of adjustment.

o     Press Enter to save.

3.    Debit VAT ledger.

4.    Enter the Amount Claimed for the reporting period in the Credit Settlement Details screen.

Note: The columns in the Input Credit Details appear based on the State selected in the Company VAT Details screen. In this example, Bihar is selected as the State.

5.    Credit the current assets ledger.

The journal voucher appears as shown below:

6.    Press Enter to save.

The states with Input Tax Credit Admitted On Capital Goods available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Voucher Entry

Andhra Pradesh

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Assam

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Bihar

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Chandigarh

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Dadra and Nagar Haveli

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Delhi

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Goa

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Jammu and Kashmir

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Jharkhand

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Karnataka

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Kerala

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Maharashtra

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Madhya Pradesh

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Odisha

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Puducherry

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Rajasthan

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Telangana

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Uttar Pradesh

Input Tax Credit Admitted On Capital Goods

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.