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

Recording a Transaction for Tax on Purchase from Unregistered Dealers

You can account for tax on purchases from unregistered dealers by creating a journal voucher.

To account for tax liability on purchase from unregistered dealers

1.    Go to Gateway of Tally > Accounting Vouchers > F7: Journal.

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 Tax on URD Purchase in the Nature of adjustment field.

o     Press Enter to save and return to the voucher screen.

3.    Debit the ledger created under the group Indirect Expenses and enter the amount.

4.    Credit the VAT ledger.

o     Enter the Rate, Assessable Value, and Commodity Code, and select the Commodity name of the item purchased in the VAT Details screen. The VAT Details screen appears as shown below:

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

o     Press Enter to return to voucher screen.

The journal voucher appears as shown below:

5.    Press Enter to save.

The states with Tax on URD Purchase available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Andhra Pradesh

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Assam

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Bihar

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Chandigarh

Tax on URD Purchase

---

Debit: Purchase ledger.

Credit: VAT ledger.

Chhattisgarh

Tax on URD Purchase

---

Debit: Ledger grouped under Current Assets.

Credit: VAT ledger.

Gujarat

Tax on URD Purchase

---

Debit: Ledger grouped under Current Assets.

Credit: VAT ledger.

Credit: Additional tax ledger.

Haryana

Tax on URD Purchase

Purchase at Lower Rate

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase at Lower Rate - Declared Goods

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase Without Payment of Tax

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase Without Payment of Tax - Declared Goods

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Himachal Pradesh

Tax on URD Purchase

Not Applicable

Debit: Expense ledger.

Credit: VAT ledger.

Purchase of Schedule-C Goods

Debit: Expense ledger.

Credit: VAT ledger.

Jammu and Kashmir

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Jharkhand

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Karnataka

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Kerala

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Madhya Pradesh

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Odisha

Tax on URD Purchase

---

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Puducherry

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Punjab

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

credit: Surcharge ledger.

Rajasthan

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Telangana

Tax on URD Purchase

---

Debit: Expense ledger.

Credit: VAT ledger.

Uttar Pradesh

Tax on URD Purchase

---

Debit: Purchase ledger.

Credit: VAT ledger.

West Bengal

Tax on URD Purchase

---

Debit: Expense/purchase ledger.

Credit: VAT ledger.