The input tax credit on capital goods has to be claimed in installments. The input credit claim is recorded using journal voucher after completing the purchase transaction.
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. Click F12: Configure.
4. Click F12: Advanced.
5. Set the option Allow expenses/fixed assets in purchase vouchers? to Yes.
6. Press Ctrl+A to save the Voucher Configuration.
7. Press Ctrl+A to return to the Accounting Voucher Creation screen.
8. Enter Supplier Invoice No. and Date.
9. Credit the party ledger and enter the amount.
10. Debit the fixed assets ledger (grouped under Fixed Assets and with Purchase Taxable - Capital Goods selected as the Classification / Nature) and enter the assessable value excluding VAT amount.
11. Debit the input tax credit ledger grouped under Duties & Taxes, and enter the required details in the VAT Details screen, as shown below:
12. Debit the additional tax ledger, and enter the required details in the VAT Details screen, as shown below:
The purchase voucher appears as shown below:
13. Press Ctrl+A to save.
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 to select the required options in the Stat Adjustment Details screen.
3. Debit the current asset ledger.
4. Credit VAT ledger, and enter required details in VAT Details screen, as shown below:
5. Credit additional tax ledger, and enter required details in VAT Details screen.
The journal voucher appears as shown below:
6. Press Enter to save.