Input Tax Credit on Purchase from URDs (Karnataka)

Create a journal voucher for input tax credit on purchase from unregistered dealers.

To create journal voucher for input tax credit on purchase from unregistered dealers

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 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 Adjustment for Purchases From URDs in the Nature of adjustment field.

o Select the option Not Applicable in the Additional Details field.

o Press Enter to save and return to voucher screen.

3. Debit the VAT ledger created under the group Duties & Taxes .

o Enter the Rate and Assessable Value in the VAT Details screen.

o Press Enter to return to voucher screen.

4. Enter the amount in Debit column.

5. Credit the ledger created under the group Current Assets .

The journal voucher appears as shown below:

6. Press Enter to save.