Reversal of Input Tax on Tax Free Goods

To create a journal voucher for reversing tax credit on tax free goods

1.     Go to Gateway of Tally > Accounting Vouchers > F7: Journal.

2.     Click J: Stat Adjustment to enable the required options in the Stat Adjustment Details screen.

3.     Debit the purchase ledger and tax amount to be reversed.

4.     Credit the VAT ledger. Enter the VAT Details as shown below:

5.     Press Enter to accept and return to journal voucher. The journal voucher appears as shown below:

6.     Press Enter to save.