Input Tax Credit Admitted on Capital Goods (Kerala)

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

To claim the 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 form.

2.    Click J: Stat Adjustment.

o     Select VAT as the Type of Duty/Tax.

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

3.    Debit the input tax credit ledger grouped under Duties & Taxes.

4.    Select the purchase reference number and the party name. The settlement details are automatically displayed. The Credit Settlement Details screen appears as shown below:

5.    Press Ctrl+A to save the details and return to the voucher creation screen.

6.    Enter the amount of tax credit being claimed in the installment.

7.    Credit the ledger for claiming input tax credit on capital goods, grouped under Current Assets. The amount appears automatically. The journal voucher appears as shown below:

8.    Press Enter to save.