In the Credit Settlement Details screen,
o Select the required Reference from the Input Credits list. The rest of the details will be filled automatically.
o Press Ctrl+A to save.
Recording of input tax credit on capital goods can be done using the journal entry in Tally.ERP 9. You can use the stat adjustment option and make relevant entries to the journal voucher to record the tax credit admitted on capital goods.
To record journal entry to account for input tax credit admitted on capital goods
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 Input Tax Credit Admitted On Capital Goods in the Nature of Adjustment field.
o Press Enter to return to the voucher.
3. Debit a VAT ledger created under the group Duties and Taxes by enabling the option Use for Purchase Tax? after selecting Type of duty/tax as VAT. The Credit Settlement Screen is displayed.
4. Credit the ledger created under the group Current Assets and enter the value in the Amount field. The completed transaction screen appears as shown below:
5. Press Enter to save.