You can account for tax on purchases from unregistered dealers by creating a journal voucher.
To create tax liability on purchase from unregistered dealers
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .
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 Tax on URD Purchase in the Nature of adjustment field.
o Press Enter to save and return to the voucher screen.
3. Debit the ledger created under the group Indirect Expenses and enter the amount.
4. Credit the purchase tax/VAT ledger created under the group Duties & Taxes .
o Enter the Rate and Assessable Value of the item purchased, in the VAT Details screen. The VAT Details screen appears as shown below:
o Press Enter to return to voucher screen.
5. Enter Narration , if required.
The journal voucher appears as shown below:
6. Press Enter to save.
'Tax on Purchase from Unregistered Dealers (Madhya Pradesh)' has been shared with