https://help.tallysolutions.com/docs/te9rel63/Tax_India/VAT/Delhi/Reversal_of_Input_Tax.htm

Recording Reversal of Input Tax (Delhi)

Refunds received against Input Tax applicable for Delhi can be recorded in a journal entry.

To create a journal voucher for reversing tax credit

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 Reversal of Input Tax , as the Nature of adjustment .

o Select the Apportionment of Input Tax for Tax Free Goods in Additional Details section.

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 purchase ledger and tax amount to be reversed.

4. Credit the VAT ledger.

o Enter the VAT Details as shown below:

5. Press Enter to accept and return to journal voucher. The journal voucher appears as shown below:

6. Press Enter to save.