Recording Reversal of Input Tax (Chandigarh)

You can record a transaction to track the reversals of tax amount for all tax free goods applicable in Chandigarh.

To create a journal voucher for reversing tax credit on tax free goods

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 Type of duty/tax as VAT .

o Select Reversal of Input Tax , as the Nature of adjustment .

o Select the Apportionment of Input Tax for Tax Free Goods in Additional Details section.

Note: Based on the selection made for Nature of Adjustments , 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 accept and return to journal voucher. The journal voucher appears as shown below:

6. Press Enter to save.