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Recording Reversal of Tax (Tamil Nadu)

An adjustment transaction is recorded for reversal of tax when input credit is claimed and has to be reversed due to various reasons. The transactions recorded for reversal of tax participate in Tamil Nadu VAT Annexure 12.

To create a journal voucher of reversal of input tax

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 Nature of adjustment .

o Select Goods Lost on Theft, Loss, Etc. in the Additional Details field.

o Press Enter to save, and return to the voucher.

3. Debit the expense ledger, and enter the value.

4. Credit the VAT ledger. The VAT Details screen appears.

o Select Party Name .

o Enter Rate , Assessable Value , Commodity name and Commodity Code .

o Press Ctrl+A to accept.

5. Enter Narration , if any.

The journal voucher appears as shown below:

6. Press Enter to save.

Similarly, reversal of tax adjustment transactions can be recorded for various reasons. The following adjustment flags are provided in Tally.ERP 9 to record reversal of tax transactions.

Capital Goods

Capital Goods used in manufacture of exempted goods

Consignment sales without F form

Entry tax

Goods Given As Gift, Free Sample

Goods Lost on Theft, Loss, Etc.

Goods Sold Below Purchase Price

Inputs Damaged in Transit Or Destroyed Before Mfg.

Inputs Destroyed in Fire Or Lost

Interstate Sales

Interstate Sales with C Form

Manufacturing of Exempt Goods

On account of leasing of goods


Purchase of Air Conditioners

Purchase of Automobiles, Spare Parts

Sale of exempt goods

Stock Transfer

Stock Transfer Without F Form

Use of Civil Structures

Utilised for Self Use