You can record notional tax credits on capital goods and non-capital goods, in a journal voucher for Chandigarh VAT.
To record the notional tax credit on capital goods in journal voucher
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 Notional Input Tax credit as the Nature of Adjustment .
o Select on Capital 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 notional input tax ledger.
Note: To identify a ledger for notional tax, in the ledger grouped under Duties & Taxes with Type of duty/tax set to VAT , set the option Use for Notional ITC to Yes .
4. Select the purchase reference and enter the purchase details in Credit Settlement Details screen.
5. Enter the tax amount.
6. Credit the ledger grouped under Current Assets .
7. Press Ctrl+A to save.
While recording the journal voucher for Notional Input Tax Credit with Additional Details set as on Non Capital Goods , debit the notional tax ledger and credit the expense ledger.
'Notional Input Tax Credit (VAT)' has been shared with