1. Select the option VAT in the Type of Duty/Tax field.
2. Select the option Reversal of Input Tax in the Nature of Adjustment field.
3. Select Reversal on Common Inputs in Additional Details.
4. Press Enter to save
For reversal of claimed or availed input tax credit, a journal entry using Reversal of Input Tax as Nature of Adjustment can be recorded.
To record journal entry to account for reversal of input tax
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal
2. Click J: Stat Adjustment button and the Stat Adjustment screen appears.
3. Debit an expense ledger created under the group Indirect Expenses.
4. Enter the required details in ITC claimable details screen.
5. Credit the VAT ledger created under the group Duties & Taxes with Type of duty/tax selected as VAT.
6. Enter the Rate and Assessable Value in VAT Details screen.
The completed screen appears as shown below:
7. Press Enter to save.
