You can record a journal voucher to capture the reduction of tax liability due to prior payments.
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 Reducing Tax Liability in the Nature of adjustment field.
o Select the option Entry Tax in Additional Details field.
Note: The options for Additional Details are provided as per state specific requirements of VAT/CST forms and annexures. In this example, Bihar is selected as the State .
o Press Enter to save and return to voucher screen.
3. Debit the VAT ledger, and enter the relevant details in the VAT Details screen.
4. Enter the amount in the Debit column.
5. Credit the ledger grouped under Current Assets .
6. Set the option Provide VAT Details? to Yes , and enter the relevant details.
Note: The option Provide VAT Details? is provided as per state specific requirements of VAT/CST forms and annexures. In this example, Bihar is selected as the State .
7. Enter Narration , if required. The journal voucher appears as shown below:
8. Press Enter to save.
T he states with Input Tax Credit Admitted On Capital Goods available as the Nature of Adjustment are given below:
|
State Name |
Nature of Adjustment |
Additional Details |
Voucher Entry |
|
Bihar |
Reducing Tax Liability |
Advance Tax Paid |
Debit: VAT ledger or ledger grouped under Current Liabilities . Credit: Ledger grouped under Current Assets . |
|
Entry Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
|
Chhattisgarh |
Reducing Tax Liability |
Adjusting with ITC |
Debit: VAT ledger. Credit: VAT ledger. |
|
Adjusting with ITC of Capital Goods |
Debit: VAT ledger. Credit: VAT ledger. |
||
|
Gujarat |
Reducing Tax Liability |
Entry Tax |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Ledger grouped under Current Assets . |
|
Jharkhand |
Reducing Tax Liability |
Entry Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
|
Kerala |
Reducing Tax Liability |
Entry Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
|
Madhya Pradesh |
Reducing Tax Liability |
Adjusting with ITC |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
|
Maharashtra |
Reducing Tax Liability |
Adjustment of Tax As Per Form 234 |
Debit: CST ledger. Credit: Expense ledger. |
|
Entry Tax |
Debit: VAT ledger. Credit: Expense ledger. |
||
|
Entry Tax on Motor Vehicle |
Debit: VAT ledger. Credit: Expense ledger. |
||
|
TCS Adjustment |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
|
Puducherry |
Reducing Tax Liability |
Advance Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
|
Refund |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
|
Punjab |
Reducing Tax Liability |
Advance Tax Deducted |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Ledger grouped under Current Assets . |
|
Advance Tax Paid |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Ledger grouped under Current Assets . |
||
|
Entry Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
|
Uttar Pradesh |
Reducing Tax Liability |
Adjusting with ITC |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
