The new journal adjustments flag provided for Delhi in Release 5.3 is Interstate Sales.
This transaction will populate the columns A3. 7. 1 Tax credit disallowed on account of sale made under section 8(1) of Central Sales Tax Act [Section 9(10)] in Form DVAT 16.
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.
o Select the option VAT in the field Type of duty/tax.
o Select the option Reversal of Input Tax in the field Nature of Adjustment.
o Select Interstate Sales from the List of Nature of Adjustments.
3. Press Enter to return to voucher.
4. Debit an expense ledger created under the group Indirect Expenses.
5. Credit the VAT ledger and enter the Rate, Assessable Value,Commodity name, Commodity Code, as required.
The VAT ledger must be:
o Grouped under Duties & Taxes
o Type of duty/tax is set to VAT
The journal voucher screen appears as shown below:
6. Press Ctrl + A to Save.