You can record a journal voucher decrease in output tax.
To create journal voucher for decrease of output tax
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 the option VAT in the Type of duty/tax field.
o Select the option Decrease of Output Tax in the Nature of adjustment field.
o Select the option Tax Deferred in Additional Details field.
o Press Enter to save and return to voucher screen.
3. Debit the VAT ledger.
o Enter the Rate and Assessable Value in the VAT Details screen.
o Press Enter to return to voucher screen.
4. Enter the amount in the Debit column.
5. Credit the ledger grouped under Current Liabilities.
6. Set the option Provide VAT Details to Yes and enter the From and To dates, else retain it as No.
7. Enter Narration, if required. The journal voucher appears as shown below:
8. Press Enter to save.
The states with Decrease of Output Tax available as the Nature of Adjustment are given below:
State Name |
Nature of Adjustment |
Additional Details |
Voucher Entry |
Andhra Pradesh |
Decrease of Output Tax |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
Assam |
Decrease of Output Tax |
Not Applicable |
Debit: VAT ledger. Credit: Income/sales ledger. |
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT/CST ledger. Credit: Income ledger (predefined with the nature of transaction Labour Charges Collected or Interstate Labour Charges Collected). |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Bihar |
Decrease of Output Tax |
Adjustment Against Tax Liability On Subsequent Sales |
Debit: VAT ledger. Credit: Ledger grouped under Indirect Incomes/Current Liabilities. |
Rebate |
Debit: VAT ledger. Credit: Income ledger. |
||
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
||
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Chandigarh |
Decrease of Output Tax |
Not Applicable |
Debit: Sales ledger. Debit: VAT ledger. Credit: Expenses ledger. |
Adjustment of Output VAT Against Notional ITC |
Debit: Expenses ledger. Credit: VAT ledger. |
||
Cash Discount on Sales |
Credit: Party ledger. Debit: Sales ledger. Debit: VAT ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
TDS on Works Contract |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Chhattisgarh |
Decrease of Output Tax |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger Credit: Party ledger or ledger grouped under Current Assets. |
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Tax Deferred on Purchase of Goods |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Tax Paid by Sub Contractor |
Debit: Sales ledger. Debit: VAT ledger. Credit: Sales ledger. Credit: Party ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Dadra and Nagar Haveli |
Decrease of Output Tax |
Bad Debts Written Off |
Debit: Expense ledger. Debit: VAT ledger. Credit: Party ledger. |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Delhi |
Decrease of Output Tax |
Bad Debts Written Off |
Debit: VAT ledger. Debit: Expenses ledger. Credit: Party ledger. |
Against CST |
Debit: CST Ledger. Credit: VAT ledger. |
||
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger Credit: Party ledger. |
||
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT ledger. Credit: Expense ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Gujarat |
Decrease of Output Tax |
Deposit on Voluntary Registration |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Ledger grouped under Current Assets. |
Sales of Commission Agent |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Party ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Ledger grouped under Current Assets. |
||
Towards Remission u/s 41 |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Income ledger. |
||
Haryana |
Decrease of Output Tax |
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
Himachal Pradesh |
Decrease of Output Tax |
Excess Paid |
Debit: VAT ledger. Credit VAT ledger. |
Purchase from Exempted Unit |
Debit: VAT ledger Credit: Expenses ledger. |
||
Purchase of Schedule-C Goods |
Debit: VAT ledger. Credit: Expense ledger. |
||
Jharkhand |
Decrease of Output Tax |
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT/CST ledger. Credit: Labour charges ledger (with nature of transaction Labour Charges Collected or Interstate Labour Charges Collected). |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Karnataka |
Decrease of Output Tax |
Reversal of Labour and Service Charges |
Debit: VAT ledger. Credit: Expenses ledger. |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
||
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
||
Kerala |
Decrease of Output Tax |
Advance Tax |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities. |
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
||
Madhya Pradesh |
Decrease of Output Tax |
Tax Deferred |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities. |
Tax Exempted |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets. |
||
Tax Paid in Excess |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities. |
||
TDS Adjustments |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets. |
||
Maharashtra |
Decrease of Output Tax |
Works Contract - Labour/other charges |
Debit: VAT ledger. Credit: Expenses ledger. |
Odisha |
Decrease of Output Tax |
Advance Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
Credit note issued by seller (excess VAT in purchase) |
Debit: VAT ledger. Credit: Party ledger. |
||
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
||
Puducherry |
Decrease of Output Tax |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party/cash ledger. |
Tax on URD Purchase |
Debit: VAT ledger. Credit: Expense ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
||
Punjab |
Decrease of Output Tax |
Adjustment of Output VAT Against Notional ITC |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Notional tax ledger (the option Use for Notional ITC? has to be enabled in the ledger master). |
Cash Discount on Sales |
Debit: Sales ledger. Debit: VAT ledger. Debit: Surcharge ledger. Credit: Party ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Ledger grouped under Current Assets. |
||
Trade Discount |
Debit: Sales ledger. Debit: VAT ledger. Debit: Surcharge ledger. Credit: Party ledger. |
||
Rajasthan |
Decrease of Output Tax |
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
Telangana |
Decrease of Output Tax |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
Uttarakhand |
Decrease of Output Tax |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party ledger. |
West Bengal |
Decrease of Output Tax |
Tax Deferred |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities. or Debit: Ledger grouped under Current Liabilities. Credit: VAT/CST ledger. |
Tax Paid in Excess |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets. |