Recording Reversal of Tax (Tamil Nadu)

An adjustment transaction is recorded for reversal of tax when input credit is claimed and has to be reversed due to various reasons. The transactions recorded for reversal of tax participate in Tamil Nadu VAT Annexure 12.

To create a journal voucher of reversal of input tax

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

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

o      Select Type of duty/tax as VAT.

o      Select Reversal of Input Tax as Nature of adjustment.

o      Select Goods Lost on Theft, Loss, Etc. in the Additional Details field.

o      Press Enter to save, and return to the voucher.

3.     Debit the expense ledger, and enter the value.

4.     Credit the VAT ledger. The VAT Details screen appears.

o      Select Party Name.

o      Enter Rate, Assessable Value, Commodity name and Commodity Code.

o      Press Ctrl+A to accept.

5.     Enter Narration, if any.

The journal voucher appears as shown below:

6.     Press Enter to save.

Similarly, reversal of tax adjustment transactions can be recorded for various reasons. The following adjustment flags are provided in Tally.ERP 9 to record reversal of tax transactions.

     Capital Goods

     Capital Goods used in manufacture of exempted goods

     Consignment sales without F form

     Entry tax

     Goods Given As Gift, Free Sample

     Goods Lost on Theft, Loss, Etc.

     Goods Sold Below Purchase Price

     Inputs Damaged in Transit Or Destroyed Before Mfg.

     Inputs Destroyed in Fire Or Lost

     Interstate Sales

     Interstate Sales with C Form

     Manufacturing of Exempt Goods

     On account of leasing of goods

     Others

     Purchase of Air Conditioners

     Purchase of Automobiles, Spare Parts

     Sale of exempt goods

     Stock Transfer

     Stock Transfer Without F Form

     Use of Civil Structures

     Utilised for Self Use