Recording Reversal of Input Tax Credit (Haryana)

You can record reversal of input tax credit for by using a journal voucher with the necessary Stat Adjustments and by selecting the applicable VAT and surcharge ledgers.

To record journal to account for reversal of 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 the option VAT in the field Type of duty/tax .

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

o Select the required Additional Details from the List of Nature of Adjustments .

3. Press Enter to return to voucher.

4. Debit an expense ledger created under the group Indirect Expenses .

5. Credit the VAT ledger and enter the Rate , Surcharge Rate , Assessable Value , Commodity name , Commodity Code , as required.

6. Credit the surcharge ledger and enter the Rate , Surcharge Rate , Assessable Value , Commodity name , Commodity Code , as required.

The completed screen appears as shown below:

7. Press Enter to save.