Under NPV scheme, 75% of output VAT on restrictive tax invoices can be claimed as input credit by debiting output VAT ledger and crediting input VAT ledger.
While recording the journal voucher to claim 75% of output VAT on restrictive tax invoices as input credit, if:
● Common VAT ledger is used, the VAT ledger displays the ledger balance after considering the input credit claimed on such invoices
● Separate ledgers maintained for input and output VAT are used, another journal voucher has to be recorded to off-set the tax credit against the tax dues
To claim the output VAT on restrictive tax invoice as input credit
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal.
2. Click J: Stat Adjustment.
o Select VAT as the Type of duty/tax.
o Select Increasing Input Tax as the Nature of Adjustment.
o Select ITC on Net Present Value Scheme for Additional Details.
3. Debit the input VAT ledger. Enter the tax Rate and Assessable Value in VAT Details screen.
4. Credit the ledger grouped under Current Assets.
5. Press Ctrl+A to save.