Creating Purchase Entry and Accounting for Tax Credit

Record a purchase entry for purchase of capital goods and then pass a journal adjustment entry (without creating any voucher class for “Journal Voucher Type”).

To create a Journal

1.    Go to Gateway of Tally > Accounting Voucher > F:7 > Press ALT+J.

2.    Select VAT in the field Type of duty/tax.

3.    Select Input Tax Credit Admitted on Capital Goods in the field Nature of Adjustment.

4.    Press Enter to save.