Refund of Input Tax (Madhya Pradesh)

Reversal of input tax can be recorded by creating a journal voucher. Use Refund of Input Tax as the Nature of Adjustment .

To create journal voucher to account for refund order

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 Type of duty/tax field.

o Select the option Refund of Input Tax in the Nature of adjustment field.

o Select the option Refund Order in Additional Details field.

o Press Enter to save and return to voucher screen.

3. Debit the VAT ledger.

o Enter the Rate and Assessable Value in the VAT Details screen.

o Press Enter to return to voucher screen.

4. Enter the amount in the Debit column.

5. Credit the ledger grouped under Current Assets .

6. Enter Narration , if required.

The journal voucher appears as shown below:

7. Press Enter to save.