Purchase of non-creditable goods is not eligible for claiming input tax credit. In return forms the tax paid on purchase of non-creditable goods is clubbed with assessable value as this tax amount is considered part of the purchase cost.
In Tally.ERP 9 purchase of goods not eligible for input credit are recorded using Non-Creditable Purchases - Special Goods as nature of transaction. The transaction can be marked as Tax invoice or Retail based on whether the supplier is registered or unregistered dealer respectively.
To record a purchase of non-creditable goods
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
2. Enter the Supplier Invoice No. and Date.
3. Select the supplier ledger in field Party’s A/c Name.
4. Select a purchase ledger with Non-Creditable Purchases - Special Goods as nature of transaction, and press Enter.
5. Select the stock item for which input tax credit is not allowed. Enter the Quantity and Rate.
6. Select VAT tax ledger.
7. Enable the option Provide VAT details. The Statutory Details screen appears.
o Select Type of invoice or accept the pre-filled details. Based on Type of dealer of the selected party master, Type of invoice will be prefilled as Tax invoice for Regular and Retail for Unregistered dealer. The Statutory Details screen appears as shown below:
o Press Enter to return to voucher screen.
8. Enter Narration, if any.
The purchase invoice appears as shown below:
9. Press Enter to save.