The Nature of Adjustment, Reducing Tax Liability is selected with relevant additional details to record journal voucher for adjusting reduction of tax liability
To account for reduction in tax liability for adjustment with TDS
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 expenses ledger, and enter the tax amount.
4. Credit the output VAT ledger. Enter the tax Rate, Assessable Value, Commodity name in VAT Details screen. The journal voucher appears as shown below:
5. Press Enter to save.