A journal voucher is created to record the reversal of input tax with Nature of Adjustment selected as Reversal of Input Tax with relevant additional details
To create a journal voucher for reversal of input 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 Stat Adjustment Details screen,
o Select VAT as Type of duty/tax .
o Select Reversal of Input Tax as Nature of adjustments.
o Select Goods Lost, Stolen Or Destroyed, Used As Gift, Sample in the Additional Details field.
o Press Enter.
3. Debit the expense ledger, and enter the value.
4. Credit the VAT ledger.
o Enter the VAT Details as shown below:
o Press Enter.
The journal voucher appears as shown below:
5. Press Enter to save.