Journal Voucher for Reversal of Tax (Andhra Pradesh)

You can account for the reversal of input tax by selecting the nature of adjustment in the journal voucher.

To record journal voucher for reversal of tax

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

2.    Click J: Stat Adjustment button.

o     Select the option VAT in the Type of Duty/Tax field.

o     Select the option Reversal of Input Tax in the Nature of Adjustment field.

o     Select the option Manufactured Goods in the Additional Details field.

o     Press Enter to return to voucher.

3.    Debit expense ledger grouped under Indirect Expenses and enter the value in the amount field.

4.    Credit the tax ledger created under the group Duties and Taxes.

o     Enter the Rate, Assessable Value, Commodity Rate and Commodity Code in the VAT Details screen.

o     Press Enter.

5.    Set the option Provide VAT Details? to Yes and enter From and To date in the Refund Adjustment Details screen.

6.    Press Enter to save.