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