The input tax credit on capital goods has to be claimed in installments. The input credit claim is recorded using journal voucher after completing the purchase transaction.
To create a purchase transaction for purchase of capital goods
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
2. Press Ctrl+V to switch to voucher mode.
3. Click F12: Configure.
4. Enter Supplier Invoice No. and Date.
5. Credit the party ledger and enter the amount.
6. Debit the fixed assets ledger (grouped under Fixed Assets and with Purchase Taxable - Capital Goods selected as nature of transaction), and enter the assessable value.
7. Debit current assets ledger created under Current Assets.
o Enter Commodity Name, Commodity Code, Assessable Value, VAT Rate % and VAT Amount Claimable in the Input Credit Details screen.
o Press Enter to return to the voucher screen.
8. Set the option Provide VAT Details? to Yes/No, as required.
9. Press Enter to save.
To account for tax credit for the purchase of capital goods
1. Go to Gateway of Tally > Accounting Vouchers> F7: Journal.
2. Select VAT as the Type of duty/tax.
3. Select Input Tax Credit Admitted on Capital Goods in the field Nature of Adjustment to claim the input tax credit.
4. Press Enter to save.