The input tax credit on capital goods is claimed in three equal installments starting from first tax period of the assessment year. The input credit claim is recorded using journal voucher.
To record purchases of capital goods
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases.
2. Press Ctrl+V to switch to voucher mode.
3. Press F12: Configure twice, set the option Allow expenses/fixed assets in purchase vouchers to Yes.
4. Press Enter to return to voucher screen.
5. Enter Supplier Invoice No. and Date.
6. Credit the party ledger and enter the amount.
7. Debit the fixed assets ledger (grouped under Fixed Assets and with Purchase Taxable - Capital Goods selected as Nature of Transaction) and enter the assessable value.
8. Debit current assets ledger created under Current Assets.
o Enter Commodity Name, Commodity Code, Rate and Addl. Rate in the Input Credit Details screen.
o Press Enter to return to voucher screen.
The purchase voucher appears as shown below:
9. Press Enter to accept the purchase voucher.
To reverse the input tax credit for purchase of capital goods
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
2. Click J: Stat Adjustment.
o Select VAT as the Type of duty/tax.
o Select Input Tax Credit Admitted On Capital Goods as the Nature of adjustment.
3. Debit VAT ledger, enter required details in VAT Details screen.
o Press Enter.
4. Debit additional tax ledger.
5. Credit the current assets ledger that was debited in the capital goods purchase transaction.
The journal voucher appears as shown below:
6. Press Enter to save.