Recording Reversal of Input Tax (Punjab)

You can record the reversal of input tax by selecting Reversal of Input Tax as the Nature of Adjustment.

To create a journal voucher for reversing tax credit

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 save.

6.     Select surcharge ledger and enter the VAT Details. The journal voucher appears as shown below:

7.     Press Enter to save.