Input Tax Adjustment for Purchases From URDs (VAT)

You can create a journal voucher to account for tax credit on purchase from unregistered dealers.

To create journal voucher for tax credit on purchase from URDs

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 the option VAT in the Type of duty/tax field.

o Select the option Input Tax Adjustment for Purchases From URDs in the Nature of adjustment field.

o Press Enter to save and return to voucher screen.

3. Debit the VAT ledger.

o Enter the Rate and Assessable Value in the VAT Details screen.

o Press Enter to return to voucher screen.

4. Enter the amount in the Debit column.

5. Credit the ledger grouped under Current Assets .

6. Enter Narration , if required.

The journal voucher appears as shown below:

7. Press Enter to save.

T he states with Input Tax Adjustment for Purchases From URDs available as the Nature of Adjustment are given below: