A journal voucher is recorded to adjust the advance tax paid. The flag Reducing Tax Liability is selected to make this adjustement.
To record journal voucher for adjustment towards advance tax paid
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 Reducing Tax Liability in the field Nature of Adjustment.
o Select the option Advance Tax in field Additional Details.
o Press Ctrl+A to return to the voucher.
3. Debit the tax ledger created under the group Duties and Taxes.
o Enter the Rate and Assessable Value in the VAT Details screen.
o Press Enter to return to voucher.
4. Credit the ledger grouped under Current Assets, and enter the value.
The journal voucher appears as shown below:
5. Press Enter to save.