https://help.tallysolutions.com/docs/te9rel63/Tax_India/VAT/andhra_pradesh/AP_Increase_Tax_Liability_Penalty.htm

Increase in Tax Liability - Penalty (Andhra Pradesh)

Tax liability due to interest can be adjusted by creating a journal for penalty payable.

To record journal entry to account for penalty payable

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 screen,

o Select the option VAT in the Type of Duty/Tax field.

o Select the option Increase of Tax Liability in the Nature of Adjustment field.

o Select Penalty for the option Additional Details .

o Press Ctrl+A to save and return to the voucher creation screen.

3. Debit an expense ledger created under Indirect Expenses , with option Is VAT/CST Applicable? set to Not Applicable .

4. Credit the ledger created under Current Liabilities . The completed screen appears as shown below:

5. Press Enter to save.