Reversal of input tax can be recorded by creating a journal voucher. Use Refund of Input Tax as the Nature of Adjustment and debit the expense under the group Indirect Expenses .
To account for input tax refund
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 Refund of Input Tax , as the Nature of adjustment .
Note: Based on the selection made for Nature of Adjustments , the Additional Details option will appear or disappear.
o Press Ctrl+A to accept and return to the voucher.
3. Debit the ledger grouped under Current Assets and enter the amount.
4. Credit the input VAT ledger. The journal voucher appears as shown below:
5. Press Enter to save.
'Recording Refund of Input Tax (Assam)' has been shared with
