Purchase of non-creditable goods is not eligible for claiming input tax credit. In return forms the tax paid on purchase of non-creditable goods is clubbed with assessable value as this tax amount is considered part of the purchase cost.
In Tally.ERP 9 purchase of goods not eligible for input credit are recorded using Non-Creditable Purchases - Special Goods as nature of transaction. The transaction can be marked as Tax invoice or Retail based on whether the supplier is registered or unregistered dealer respectively.
To record a purchase of non-creditable goods
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .
2. Enter the Supplier Invoice No. and Date .
3. Select the supplier ledger in field Party’s A/c Name .
4. Select a purchase ledger with Non-Creditable Purchases - Special Goods as nature of transaction, and press Enter .
Specify the tax rate and commodity details in the ledger master.
5. Select the stock item for which input tax credit is not allowed. Enter the Quantity and Rate .
6. Select VAT tax ledger.
7. Enable the option Provide VAT details . The Statutory Details screen appears.
o Select Type of invoice or accept the pre-filled details. Based on Type of dealer of the selected party master, Type of invoice will be prefilled as Tax invoice for Regular and Retail for Unregistered dealer . The Statutory Details screen appears as shown below:
o Press Enter to return to voucher screen.
8. Enter Narration , if any.
The purchase invoice appears as shown below:
9. Press Enter to save.
'Recording Purchase of Non-Creditable Goods' has been shared with