You can record a transaction for increase of input tax in journal voucher.
To account for increase in input 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 Type of duty/tax as VAT.
o Select Increasing Input Tax, as the Nature of adjustment.
Note: Based on the selection made for Nature of Adjustments, the Additional Details option either appears or disappears.
o Press Ctrl+A to return to the voucher.
3. Debit the expense ledger and enter the amount.
4. Credit the input VAT ledger. Enter the tax Rate and Assessable Value in VAT Details screen. The journal voucher appears as shown below:
5. Press Enter to save.
The states with Increasing Input Tax available as the Nature of Adjustment are given below:
|
State Name |
Nature of Adjustment |
Additional Details |
Voucher Entry |
|
Assam |
Increasing Input Tax |
Set off for tax paid under Section 10 (1A) Sales |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Chandigarh |
Increasing Input Tax |
Installment of Input Tax on Stock Held on Appointed Day |
Debit: Expenses ledger. Credit: VAT ledger. |
|
Chhattisgarh |
Increasing Input Tax |
--- |
Debit: VAT ledger (in the Rate field of VAT Details screen, the tax rate should be specified as 1%). Credit: Expenses ledger. |
|
Dadra and Nagar Haveli |
Increasing Input Tax |
Change in Use of Goods, for Purchase for Which Credit Allowed |
Debit: VAT ledger. Credit: Purchase ledger. |
|
Opening Stock |
Debit: VAT ledger. Credit: Purchase ledger. |
||
|
Other Adjustments |
Debit: Purchase ledger. Debit: VAT ledger. Credit: Party ledger. |
||
|
Switch Over |
Debit: VAT ledger. Credit: Purchase ledger. |
||
|
Tax Credit for Purchase of Second-Hand Goods |
Debit: VAT ledger. Credit: Purchase ledger. |
||
|
Transitional Opening Stock |
Debit: VAT ledger. Credit: Purchase ledger. |
||
|
Delhi |
Increasing Input Tax |
Change in Use of Goods, for Purchase for Which Credit Allowed |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Not Applicable |
Debit: VAT ledger. Credit: Expense ledger. |
||
|
Opening Stock |
Debit: VAT ledger. Credit: Purchase ledger. |
||
|
Switch Over |
Debit: VAT ledger. Credit: Purchase ledger. |
||
|
Tax Credit for Purchase of Second-Hand Goods |
Debit: VAT ledger. Credit: Purchase ledger. |
||
|
Other Adjustments |
Debit: Purchase ledger. Debit: VAT ledger. Credit: Party ledger. |
||
|
Balance Tax Credit on Right to Use Goods |
Debit: Purchase ledger. Debit: VAT ledger. Credit: Expenses ledger. |
||
|
Goa |
Increasing Input Tax |
Entry Tax Paid |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
ITC on Net Present Value Scheme |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
|
Opening Stock |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
|
Himachal Pradesh |
Increasing Input Tax |
Opening Stock |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Jharkhand |
Increasing Input Tax |
Attributable Input Tax Towards Exempted Sales |
Debit: Expenses ledger. Credit: VAT ledger. |
|
Opening Stock |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
|
Kerala |
Increasing Input Tax |
Adjustment Against Arrears |
Debit: Ledger grouped under Current Liabilities. Credit: VAT ledger. |
|
Madhya Pradesh |
Increasing Input Tax |
Others |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
Maharashtra |
Increasing Input Tax |
Tax Credit Not Claimed on Goods Return |
Debit: VAT ledger. Credit: Purchase ledger. |
|
Odisha |
Increasing Input Tax |
Adjustment of ITC Towards Transfer Rights |
Debit: Expenses ledger. Credit: VAT ledger. |
|
Adjustments Towards Transfer Rights - Previous Return |
Debit: Expenses ledger. Credit: VAT ledger. |
||
|
Debit note issued to buyer (insufficient VAT in sales) |
Debit: VAT ledger. Credit: Party ledger. |
||
|
Opening Stock |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
|
Refund disallowed |
Debit: VAT ledger. Credit: Expense/income ledger. |
||
|
Puducherry |
Increasing Input Tax |
Opening Stock |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets/Purchase Accounts. |
|
Other Adjustments |
Debit: Purchase ledger. Debit: VAT ledger. Credit: party/cash ledger. |
||
|
Switch Over |
Debit: VAT ledger. Credit: Purchase ledger. |
||
|
Tax Adjustment Towards Transfer of Right to Use |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
|
Tax Credit of Purchase of Second-Hand Goods |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets/Purchase Accounts. |
||
|
Punjab |
Increasing Input Tax |
Goods Received Back After Job Work |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Current Assets ledger. |
|
Rajasthan |
Increasing Input Tax |
Opening Stock |
Debit: VAT ledger. Credit: Purchase ledger. |
|
Uttarakhand |
Increasing Input Tax |
Opening Stock |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Uttar Pradesh |
Increasing Input Tax |
Opening Stock |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
West Bengal |
Increasing Input Tax |
Opening Stock |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Short Claimed Earlier |
Debit: VAT ledger. Credit: Purchase/expense ledger. |
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