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.

Note: You can create a journal voucher from Gateway of Tally > Display > Statutory Reports > VAT > select the VAT or CST form.

2.    Click J: Stat Adjustment. In the Stat Adjustment Details screen,

o     Select Type of duty/tax as VAT.

o     Select Reversal of Input Tax, as the Nature of adjustment.

o     Select the Other ITC Adjustments in Additional Details section.

Note: Based on the selection made for Nature of Adjustment, the Additional Details option either appears or disappears.

o     Press Ctrl+A to return to the voucher.

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.