You can record a journal voucher to capture reversal of input tax by selecting Reversal of Input Tax as the nature of adjustment.
To create a journal voucher of 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 the Stat Adjustment Details screen,
o Select the option VAT in the Type of duty/tax field.
o Select the option Reversal of Input Tax as Nature in the Nature of adjustment field.
o Select the option Stock Transfer in the Additional Details field.
o Press Enter to save and return to voucher screen.
3. Debit the purchase ledger.
o Select the Name of Item and enter the Amount in the Inventory Allocations screen.
o Press Enter to return to voucher screen.
4. Enter the amount in Debit column.
5. Credit the VAT ledger.
o Enter the VAT Details as shown below:
o Press Enter to return to voucher screen.
The journal voucher appears as shown below:
6. Press Enter to save.