Increase in tax liability can be adjusted by creating a journal voucher.
To account for increase in tax liability
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 screen,
o Select Type of duty/tax as VAT .
o Select Increase of Tax Liability , as the Nature of adjustment .
o Select the Interests in Additional Details section.
Note: Based on the selection made for Nature of Adjustments , the Additional Details option will appear or disappear.
o Press Ctrl+A to return to the voucher.
3. Debit the expenses ledger created under Indirect Expenses . Enter the amount.
4. Credit the ledger created under Current Liabilities .
The journal voucher appears as shown below:
5. Press Enter to save.