https://help.tallysolutions.com/docs/te9rel63/Tax_India/VAT/Punjab/PB_ITC_Reversal.htm

Recording Reversal of Input Tax (Punjab)

You can record the reversal of input tax by selecting Reversal of Input Tax as the Nature of Adjustment .

To create a journal voucher for reversing tax credit

1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .

N ote: 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 Other ITC Adjustments in Additional Details section.

Note: Based on the selection made for Nature of Adjustment , 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. Enter the VAT Details as shown below:

5. Press Enter to save.

6. Select surcharge ledger and enter the VAT Details . The journal voucher appears as shown below:

7. Press Enter to save.