Tax adjustment required due to decrease in output tax can be recorded by creating a journal voucher with the Nature of adjustment as Decrease of 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. Enter Narration, if required.
The journal voucher appears as shown below:
7. Press Enter to save.
'Decrease of Output Tax (Madhya Pradesh)' has been shared with
