To generate Form DVAT 16
Go to Gateway of Tally > Display > Statutory Reports > VAT > Form DVAT 16.
Select Quarterly in VAT Returns menu and press Enter.
Press Ctrl+P (Print Form button) to display the Printing screen.
Select the Type of Return as either Original or Revised.
Enter the details in Name, Status/Designation, Place and Date fields.
If the Type of Return is set to Revised, additional fields will appear to enter the details of Original returns. Enter the relevant information in these fields.
Press Enter to print Form DVAT 16 in MS Word format.
The print preview of the Form DVAT 16 appears as shown below:
The explanation on Form DVAT 16 is given below:
If the journal voucher is recorded with the VAT Adjustment Adjustment Towards Refund Claim, the box for YES will be checked. If this entry is not recorded, the box for NO will be checked.
The Month or Quarter is displayed with the year depending on the From and To dates entered in the Print Report screen of Form DVAT 16 report.
When Original is selected in Type of Return in the Print Report screen of Form DVAT 16 report, this section will be blank. If the Type of Return is selected as Revised, following details of original return have to be provided. The same gets displayed in the relevant fields of this section.
Date of Original Return.
Acknowledgement Number.
Date of Discovery of Mistake/Error.
Reasons for revision.
The TIN entered in Company VAT Details screen of Statutory & Taxation features is displayed here.
The Mailing Name entered in the Company Creation screen is displayed here.
The Address entered in the Company Creation screen is displayed here.
The Mobile Number entered in the Company Creation screen is displayed here.
The top five stock items dealt with during the tax period is displayed here. For each stock item, the following details will be displayed:
Commodity Code: Commodity code predefined in the stock item master.
Description of Goods: Name of the commodity predefined in Commodity Name field of stock item master.
Rate of Tax: The Tax Rate predefined in the stock item master.
Tax Contribution: Net tax amount on the item invoiced is calculated as follows:
Output VAT collected - Input VAT paid
The total of local and interstate sales (box R4.2 + R4.3) is displayed here.
The total value of all sales recorded using nature of transactions provided for inter-state sales is displayed here.
The total value of all sales recorded using nature of transactions provided for local sales is displayed here.
The assessable value of sales recorded using Sales Taxable (Nature of Transaction) for stock items taxable at 1% tax rate is displayed in Turnover column.
The output VAT calculated on this assessable value using the VAT ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT) is displayed in Output Tax column.
The assessable value of sales recorded using Sales Taxable (Nature of Transaction) for stock items taxable at 5% is displayed in Turnover column.
The output VAT calculated on this assessable value using the VAT ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT) is displayed in Output Tax column.
The assessable value of sales recorded using Sales Taxable (Nature of Transaction) for stock items taxable at 12.5% is displayed in Turnover column.
The output VAT calculated on this assessable value using the VAT ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT) is displayed in Output Tax column.
The assessable value of sales recorded using Sales Taxable as a nature of transaction for stock items taxable at 20% is displayed in Turnover column.
The output VAT calculated on this assessable value using the VAT ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT) is displayed in Output Tax column.
The sale of works contract recorded by selecting stock items (identified as works contract) taxable at 5% are displayed here.
To display the assessable value of works contract sales in this field,
Select sales ledger with Sales - Works Contract as its nature of transaction. The assessable value will be displayed in Turnover column. For sales, any of the two ledgers below can be used in the transaction.
A common sales ledger wherein the Nature of Transaction is selected while invoicing.
A sales ledger predefined with 5% VAT rate to automatically display the Nature of Transaction.
Common VAT ledger or VAT ledger predefined with 5% VAT rate (grouped under Duties & Taxes with Type of Duty/Tax as VAT) will be displayed in Output Tax column.
The sale of works contract recorded by selecting stock items (identified as works contract) taxable at 12.5% is displayed here.
To display the assessable value of works contract sales in this field,
Select Sales ledger with Nature of Transaction set as Sales - Works Contract. The assessable value will be displayed in Turnover column. For sales, any of the two ledgers below can be used in the transaction.
A common sales ledger wherein the Nature of Transaction is selected while invoicing.
A sales ledger predefined with 12.5% VAT rate to automatically display the Nature of Transaction.
Common VAT ledger or VAT ledger predefined with 12.5% VAT rate (grouped under Duties & Taxes with Type of Duty/Tax as VAT) will be displayed in Output Tax column.
The assessable value of sales recorded using the Sales Exempt as a nature of transaction is displayed here.
The amount deducted towards labour charges in works contract sales recorded with the following details is displayed here:
Sales transaction is recorded using the Nature of Transaction Sales - Works Contract.
In the Works Contract Details screen of sales invoice, the Type of Works Contract is set to Others and percentage or amount of deduction is entered in Deduction for Labour Charges field.
The amount deducted towards labour charges in works contract sales recorded with the following details is displayed here:
Sales transaction is recorded using the Nature of Transaction Sales - Works Contract.
In the Works Contract Details screen of sales invoice, the Type of Works Contract is set to Civil and/or Others and amount of deduction is entered in Cost of Land field.
The assessable value of sales recorded using Sales Exempt as a nature of transaction is displayed here if the stock item selected in the invoice is predefined with Petrol/Diesel as the Type of Goods.
The assessable value of sales recorded:
Using Deemed Export as a nature of transaction.
By selecting H Form as Form to Receive in Statutory Details screen of sales invoice is displayed here.
The value of output VAT on all taxable transactions is displayed here.
The value of Annexure A2 is displayed here.
The total output VAT (box 5.12+5.13) is displayed here.
The assessable value of purchases recorded with the following settings are displayed here.
The purchase ledger is grouped under Fixed Assets.
In VAT Details screen of Fixed Asset ledger,
The Classification/Nature of transaction is selected as Purchase Taxable - Capital Goods.
Tax Rate is defined as 5% and 12.5%
The total value of goods other than capital goods [box R6.2(1) + R6.2.(2) + R6.2(3) + R6.2(4) + R6.2(5) + R6.2(6)] is displayed here.
The net assessable value of purchases recorded using Purchases Taxable (Nature of Transaction)for stock items taxable at 1% is displayed in Purchases column.
The input VAT calculated on this assessable value using VAT ledger grouped under Duties & Taxes with Type of Duty/Tax as VAT is displayed in Tax Credits column.
The assessable value of purchases recorded using Purchases Taxable (Nature of Transaction) for stock items taxable at 2% is displayed in Purchases column.
The input VAT calculated on this assessable value using VAT ledger grouped under Duties & Taxes with Type of Duty/Tax as VAT is displayed in Tax Credits column.
The assessable value of purchases recorded using Purchases Taxable (Nature of Transaction) for stock items taxable at 2.5% is displayed in Purchases column.
The input VAT calculated on this assessable value using VAT ledger grouped under Duties & Taxes with Type of Duty/Tax as VAT is displayed in Tax Credits column.
The assessable value of purchases recorded using Purchases Taxable (Nature of Transaction) for stock items taxable at 20% is displayed in Purchases column.
The input VAT calculated on this assessable value using VAT ledger grouped under Duties & Taxes with Type of Duty/Tax as VAT is displayed in Tax Credits column.
The assessable value of purchases recorded using Purchase - Works Contract (Nature of Transaction) for purchase of work contract (identified as stock item predefined with 5% tax rate) attracting 5% VAT rate is displayed in Purchases column.
The input VAT calculated on this assessable value using VAT ledger grouped under Duties & Taxes with Type of Duty/Tax as VAT is displayed in Tax Credits column.
The assessable value of purchases recorded using Purchase - Works Contract (Nature of Transaction) for purchase of work contract (identified as stock item predefined with 12.5% tax rate) attracting 12.5% VAT rate is displayed in Purchases column.
The input VAT calculated on this assessable value using VAT ledger grouped under Duties & Taxes with Type of Duty/Tax as VAT is displayed in Tax Credits column.
The assessable value of purchase recorded with the following settings is displayed here.
Party ledger is predefined with Unregistered dealer as the Type of Dealer.
Nature of Transaction is selected as Purchase From Unregistered Dealer.
The assessable value of purchase recorded with the following settings is displayed here.
Party ledger is predefined with Composition dealer as the Type of Dealer.
Nature of Transaction is selected as Purchase From Composition Dealer.
The assessable value of purchase recorded using Nature of Transaction Purchases Non-Creditable is displayed here.
The assessable value on purchase recorded using Nature of Transaction Purchase Tax Free is displayed here.
The amount deducted towards labour charges in works contract purchases recorded with the following details is displayed here:
Sales transaction is recorded using the Nature of Transaction Purchase - Works Contract.
In the Works Contract Details screen of sales invoice, the Type of Works Contract is set to Others and percentage or amount of deduction is entered only in Deduction for Labour Charges field.
This field is currently blank.
This field is currently blank.
The assessable value of purchase recorded using Purchase Exempt (Nature of Transaction) for stock items predefined with Petrol/Diesel as the Type of Goods is displayed here.
The assessable value of purchase recorded using Purchase Deemed Export as nature of transaction is displayed here.
The assessable value of purchases recorded using Purchase Exempt - Capital Goods (Nature of Transaction) with the following settings in VAT Details screen is displayed here.
The Company Nature of Business is selected as Mfg. Non-Creditable Goods.
Tax Rate is defined as 0%.
Tax Type is set to Exempt.
The total value of input tax is displayed here.
The total amount shown in box A4 of Annexure I is displayed here.
The total amount of input tax [box R6.4 + R6.5] is displayed here.
The difference between input tax credit and output VAT (i.e., R5.14 - R6.6) is displayed in Box R7.1.
The value of entry recorded in Journal voucher by select Interest payable as the VAT Adjustment is displayed here. The journal entry is given below:
In Journal voucher select Interest Payable in Used for field.
Debit: Interest Expenses (grouped under Indirect Expenses).
Credit: Interest Payable ledger (grouped under Current Liabilities).
The value of entry recorded in Journal voucher by select Penalty Due as the VAT Adjustment is displayed here. The journal entry is given below:
In journal voucher select Penalty Due in Used for field.
Debit: Penalty (grouped under Indirect Expenses).
Credit: Penalty Payable ledger (grouped under Current Liabilities).
The debit values of entries recorded in Journal voucher by selecting TDS Adjustment as the VAT Adjustment is displayed here.
In journal voucher select TDS Adjustment in Used for field.
Debit: VAT Payable ledger (grouped under Duties & Taxes with Type of Duty/Tax as Others).
Credit: Tax Deducted at Source ledger (grouped under Current Assets).
In the Journal voucher, enable the option Provide Details and enter the,
TDS Bar Code - The information entered here will be displayed in Form DVAT-43 ID No. column of box 7.4
Date - The date entered here will be displayed in Date column of box 7.4
Amount - The amount entered here will be displayed in Amount column of box 7.4
This shows the amount of tax credit brought forward from previous return period which were not utilized.
The debit values of entries recorded in Journal voucher by selecting Adjustment of Excess CST Towards VAT as the VAT Adjustment is displayed here.
In journal voucher select Adjustment of Excess CST Towards VAT in Used for field.
Debit: Input VAT ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT).
Credit: CST ledger (grouped under Duties & Taxes with Type of Duty/Tax as CST).
The balance amount [(R7.1 + R7.2 + R7.3) – (R7.4 + R7.5 + R7.6)] obtained after considering the net tax liability towards interest, penalty and TDS adjustments is displayed here.
The VAT amount entered in payment voucher using Stat Payment button by specifying the details in VAT Payment Details screen is displayed here.
The payment details entered in Deposit Date, Name of Bank & Branch (remittance), Branch code (remittance) and Instrument number are displayed in the relevant columns of this section.
The difference between the balance amount payable by the dealer and the actual payment made [box R7.7 - R7.8] is displayed here.
The balance of input tax credit of box R8 is displayed here. Value will be displayed here only if the amount deposited is more than the liability payable.
The value of entry recorded in Journal voucher by select Adjustment Towards CST as the VAT Adjustment is displayed here. The journal entry is given below:
In journal voucher select Adjustment Towards CST in Used for field.
Debit: CST ledger (grouped under Duties & Taxes with Type of Duty/Tax as CST).
Credit: Input VAT ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT).
The value of entry recorded in Journal voucher by select Adjustment Towards Refund Claim as the VAT Adjustment is displayed here. The journal entry is given below:
Debit: Refund claim ledger (grouped under Current Assets).
Credit: Input VAT ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT).
In the Journal voucher, enable the option Provide Details and enter details in Account Number, Account Type, MICR Number, Name of Bank and Name of Branch fields.
The excess input VAT credit available after adjusting the CST dues and claiming refund is displayed here.
The Account Number entered in the Bank Details for Refund screen of Journal voucher recorded using Adjustment Towards Refund Claim (VAT Adjustment flag ) is displayed here.
The Account Type selected in the Bank Details for Refund screen of Journal voucher recorded using the Adjustment Towards Refund Claim (VAT Adjustment flag ) is displayed here.
The MICR Number entered in the Bank Details for Refund screen of Journal voucher recorded using Adjustment Towards Refund Claim (VAT Adjustment flag ) is displayed here.
a) Name of Bank – The Name of Bank entered in the Bank Details for Refund screen of Journal voucher recorded using Adjustment Towards Refund Claim (VAT Adjustment flag ) is displayed here.
b) Branch Name – The Branch Name entered in the Bank Details for Refund screen of Journal voucher recorded using Adjustment Towards Refund Claim (VAT Adjustment flag ) is displayed here.
The assessable value of all inter-state sales recorded using Interstate Sales - Against Form C (Nature of Transaction) for stock items taxable at 1% and 2% tax rates is displayed here.
The assessable value of all inter-state purchases recorded using the Interstate Purchase - Against Form C (Nature of Transaction) for stock items taxable at 1% and 2% tax rates is displayed here.
The assessable value of all inter-state sales recorded using the following Nature of Transactions for stock items taxable at 1% and 2% tax rates is displayed here.
Interstate Sales - E1
Interstate Sales - E2
Interstate Sales Exempt - E1
The assessable value of all inter-state purchases recorded using the following Nature of Transactions for stock items taxable at 1% and 2% is displayed here.
Interstate Purchase - E1
Interstate Purchase - E2
Interstate Purchase Exempt - E1
The assessable value of all inter-state sales recorded using the Interstate Branch Transfer Outward (Nature of Transaction) is displayed here.
The assessable value of all inter-state purchases recorded using Interstate Branch Transfer Inward (Nature of Transaction) is displayed here.
The assessable value of all inter-state sales recorded using Interstate Consignment Transfer Outward (Nature of Transaction) is displayed here.
The assessable value of all inter-state purchases recorded using Interstate Consignment Transfer Inward (Nature of Transaction) is displayed here.
The value of goods entered in Material Out voucher is displayed here only when,
A godown in which the option Our Stock with Third Party is enabled, is selected in Destination Godown option
Form F is selected in Statutory Details screen (displayed on enabling the option Provide Statutory Details)
The value of goods entered in Material In voucher is displayed here only when,
A godown in which the option Our Stock with Third Party is enabled, is selected in Source Godown option.
Form F is selected in Statutory Details screen (displayed on enabling the option Provide Statutory Details).
The value of goods entered in Material Out voucher is displayed here only when,
A godown (Third Party Stock with Us option is enabled) is selected in Destination Godown option.
Form F is selected in Statutory Details screen (displayed on enabling the option Provide Statutory Details).
The value of goods entered in Material In voucher is displayed here only when,
A godown (Third Party Stock with Us option is enabled) is selected in Source Godown option.
Form F is selected in Statutory Details screen (displayed on enabling the option Provide Statutory Details).
The assessable value of all inter-state sales recorded using Interstate Deemed Export as its nature of transaction is displayed here.
The assessable value of all inter-state purchase recorded using Interstate Purchase Deemed Export as its nature of transaction is displayed here.
The assessable value of all inter-state sales recorded using the Interstate Sales - Zero Rated as its nature of transaction is displayed here.
The assessable value of all inter-state purchase recorded using Interstate Purchase - Zero Rated as its nature of transaction is displayed here.
The assessable value of all inter-state sales recorded with the following details is displayed here.
The nature of transaction is selected as Interstate Sales - Zero Rated.
In the party ledger master, the Type of Exemption selected is Diplomatic Missions & U.N.
The assessable value of all inter-state purchases recorded with the following details is displayed here.
The nature of transaction is selected as Interstate Purchase - Zero Rated.
In the party ledger master, the Type of Exemption selected is Diplomatic Missions & U.N.
The assessable value of all sales recorded using the Exports as its nature of transaction is displayed here.
The assessable value of all purchase recorded using the Imports as its nature of transaction is displayed here.
The assessable value of all inter-state sales recorded using Interstate Sales Exempt as its nature of transaction is displayed here.
The assessable value of all inter-state purchase recorded using Interstate Purchase Exempt as its nature of transaction is displayed here.
The assessable value of all inter-state sales recorded using Sales High Seas as its nature of transaction is displayed here.
The assessable value of all inter-state purchase recorded using Purchase High Seas as its nature of transaction is displayed here.
The assessable value of all inter-state sales recorded using Interstate Sales - Taxable (Nature of transaction) for stock items taxable at 1%, 5%, 12.5% and 20% is displayed here.
The assessable value of all inter-state purchases recorded using Interstate Purchase - Taxable(Nature of transaction) for stock items taxable at 1%, 5%, 12.5% and 20% tax rates is displayed here.
The assessable value of purchase of capital goods recorded using Interstate Purchase - Against Form C (Nature of Transaction) is displayed here.
The assessable value of sales recorded using Interstate Sales - Against Form C (Nature of Transaction) is displayed here.
The sum total of all boxes for Inter-state Purchases/Imports from R11.1 to R11.14 is displayed here.
The sum total of all boxes for Inter-state Sales/Exports from R11.1 to R11.14 is displayed here.
The name, signature, full name (first name, middle name, surname), designation/status of the authorized signatory including the place of the business and the date of submission of the return should be entered here.
The assessable value sales cancelled using Sales Returns (nature of transaction) of stock items taxable at 1%, 5%, 12.5% and 20% tax rates are displayed in relevant columns.
The value of sales whose nature of transaction were changed over the period of filing returns for stock items taxable at 1%, 5%, 12.5% and 20% are displayed here. The increased or decreased in the value are displayed in their respective fields.
The value of sales changed due to agreed consideration due to either escalation or de-escalation for stock items taxable at 1%, 5%, 12.5% and 20%are displayed here. The increased or decreased in value are displayed in their respective fields.
The value of sales returned made during the return period for stock items taxable at 1%, 5%, 12.5% and 20% are displayed here. The assessable sales value is displayed in Decrease in Turnover/amount involved. The tax amount value should be displayed in Decrease in Output Tax (B) column.
A dealer may write-off the whole or partial value of sales to a particular customer as bad debt. The amount of bad debts must be nullified and the purchase values needs to be transferred to expense account. The amount of tax included in such sale value can be claimed as a deduction by the dealer.
The value of output VAT debited for 1%, 5%, 12.5% and 20% VAT rates in journal voucher recorded using Bad Debts Written Off (VAT adjustment) will be displayed in the Decrease in Output Tax column.
The amount of output VAT included in the instance of bad debts incurred is nullified and the balance in the party account is transferred to an expense ledger. Sometimes, the dealer may recover the amount written-off as bad debts from the customer. Such bad debts recovered will be considered as income and is chargeable to output VAT.
The value of output VAT credited for 1%, 5%, 12.5% and 20% VAT rates in journal voucher recorded using Bad Debts Recovered (VAT adjustment) will be displayed in the Increase in Output Tax column.
The input VAT paid on closing stock of goods held cannot be claimed as tax credit when the registration is cancelled. In such cases, these goods have to be considered as chargeable to output VAT and valued based on the fair market value. The difference between the input tax credit and the output VAT payable needs to be adjusted using a journal voucher. Also, if the tax credit is already availed, then the same will be chargeable to output VAT.
The value of output VAT credited for 1%, 5%, 12.5% and 20% VAT rates in Journal voucher recorded using the VAT adjustment Tax Payable on Goods Held on Date of Cancellation of Registration will be displayed in the Increase in Output Tax column.
The assessable value and output VAT amount entered using Other Adjustments (Sales) as VAT adjustment flag in credit note and debit notes by selecting stock items predefined with 1%, 5%, 12.5% and 20% tax rates are displayed in relevant columns.
The total of increase and decrease in output VAT will be displayed in Increase in Output Tax and Decrease in Output Tax columns respectively.
The increase/decrease in output VAT after computing net increase/decrease i.e., {Increase in Output VAT (A) – Decrease in Output VAT (B)} will be displayed here.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Reversal of ITC on Goods Sold Below Purchase Price is displayed here.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Receipt of Debit Notes From Seller is displayed here.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Receipt of Credit Notes From Seller is displayed here.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in credit note by selecting the VAT Adjustment Purchases Returned or Rejected is displayed here.
In case, a dealer purchases goods for a particular purpose for which tax credit is allowed and subsequently uses the goods for any other purpose on which tax credit is not allowed, then the input tax claimed on such purchase has to be reversed. The reversal entry must be made in a journal.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in Journal voucher by selecting the VAT Adjustment Change in Use of Goods, for Purchase Other Than for Which Credit Allowed is displayed here.
A dealer may purchase goods on which tax credit is not allowed and subsequently use it for a purpose for which tax credit is allowed. In such a case, the input VAT needs to be accounted by the dealer.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in Journal voucher by selecting the VAT Adjustment Change in Use of Goods, for Purchase for Which Credit Allowed is displayed here.
The tax credit claimed at the time of purchase by the dealer has to be reversed if the goods are subsequently transferred out of Delhi. This adjustment entry has to be recorded in a journal voucher.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Tax Credit Disallowed in Respect of Stock Transfer Out of Delhi is displayed here.
The input VAT paid on goods purchased from registered dealers can be claimed as tax credit on transitional stock held by the dealer, on producing the supporting invoices, evidencing the payment of input VAT. This adjustment entry has to be made in a journal voucher.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Tax Credit for Transitional Stock Held on 1st April is displayed here.
On purchase of second-hand goods, tax credit can be claimed only if the supporting document is an original tax invoice. The entry for claiming tax credit on purchase of second-hand goods must be recorded in a journal.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Tax Credit for Purchase of Second-Hand Goods is displayed here.
The dealer opting to withdraw from composition scheme would be eligible to claim tax credit on input tax paid under the regulation on the trading stock, raw material and packaging material held on the date from which withdrawal is sought. The credit would be available on the basis of original tax invoice showing the tax component separately.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in Journal voucher by selecting the VAT Adjustment Tax Credit for Goods Held on the Date of Withdrawal From Composition Scheme is displayed here.
A dealer may have purchased goods from a registered dealer before falling under the purview of VAT Act. Such input tax paid can be claimed as a tax credit by the dealer at the time of registration under the Act. The tax credit can be claimed on trading stock or raw materials only if, there is a supporting tax invoice issued by a registered dealer for the amount of input tax paid on such goods.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Tax Credit for Trading Stock and Raw Materials Held at the Time of Registration is displayed here.
The input tax credit claimed on purchase of goods has to be reversed if such goods are lost or destroyed.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT adjustment Tax Credit Disallowed for Goods Lost Or Destroyed is displayed here.
The tax credit on purchase of capital goods can be claimed in 3 equal installments. The adjustment entry to avail the tax credit can be accounted for in journal voucher using voucher class.
The assessable value and input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT adjustment Tax Credit Adjustment on Sale Or Stock Transfer of Capital Goods is displayed here.
The input VAT (debit input VAT and credit current asset ledger) entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Balance Tax Credit on Capital Goods is displayed here.
The credit value of input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the VAT Adjustment Balance Tax Credit on Right to Use Goods is displayed here.
The credit value of input VAT entered for 1%, 5%, 12.5% and 20% VAT rates in journal voucher by selecting the Other Adjustments (Purchase) as VAT adjustment flag is displayed here.
The total of increase and decrease in input tax credit will be displayed in Increase in Tax Credit and Decrease in Tax Credit columns respectively.
The increase/decrease in output VAT after computing net increase/decrease i.e., {Increase in Tax Credit (C) - Decrease in Tax Credit (D)} is displayed here.