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Record Tax on Purchase from Unregistered Dealers (VAT)

You can account for tax on purchase from unregistered dealers by creating a journal voucher.

  1. Gateway of Tally > Vouchers > press F7 (Journal).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
  2. Press Alt+J (Stat Adjustment) , select the options as given below:
    • Type of duty/tax – VAT.
    • Nature of Adjustment – Tax on URD Purchase.
    • Press Enter to save and return to the voucher screen.
  3. Debit the ledger created under the group Indirect Expenses and enter the amount.
  4. Credit the VAT ledger.
    As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter. 
    • Enter the Rate, Assessable Value, and Commodity Code, and select the Commodity name of the item purchased in the VAT Details screen. The VAT Details screen appears as shown below:

      Note: The columns in the VAT Details screen appear based on the State selected in the Company Creation screen. In this example, Bihar is selected as the State.
    • Press Enter to return to voucher screen. The journal voucher appears as shown below:
  5. Accept the screen. As always, you can press Ctrl+A to save.

The states with Tax on URD Purchase available as the Nature of Adjustment are given below:

State Name

Additional Details

Voucher Entry

Andhra Pradesh

—

Debit: Expense ledger.

Credit: VAT ledger.

Assam

—

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Bihar

—

Debit: Expense ledger.

Credit: VAT ledger.

Chandigarh

—

Debit: Purchase ledger.

Credit: VAT ledger.

Chhattisgarh

—

Debit: Ledger grouped under Current Assets.

Credit: VAT ledger.

Gujarat

—

Debit: Ledger grouped under Current Assets.

Credit: VAT ledger.

Credit: Additional tax ledger.

Haryana

Purchase at Lower Rate

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase at Lower Rate – Declared Goods

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase Without Payment of Tax

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase Without Payment of Tax – Declared Goods

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Himachal Pradesh

Not Applicable

Debit: Expense ledger.

Credit: VAT ledger.

Purchase of Schedule-C Goods

Debit: Expense ledger.

Credit: VAT ledger.

Jammu and Kashmir

—

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Jharkhand

—

Debit: Expense ledger.

Credit: VAT ledger.

Karnataka

—

Debit: Expense ledger.

Credit: VAT ledger.

Kerala

—

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Madhya Pradesh

—

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Odisha

—

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Puducherry

—

Debit: Expense ledger.

Credit: VAT ledger.

Punjab

—

Debit: Expense ledger.

Credit: VAT ledger.

credit: Surcharge ledger.

Rajasthan

—

Debit: Expense ledger.

Credit: VAT ledger.

Telangana

—

Debit: Expense ledger.

Credit: VAT ledger.

Uttar Pradesh

—

Debit: Purchase ledger.

Credit: VAT ledger.

West Bengal

—

Debit: Expense/purchase ledger.

Credit: VAT ledger.

 

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