The journal vouchers can be recorded by selecting the corresponding nature of adjustments, as detailed in this topic.
|
Nature of Adjustment |
Additional Details |
Journal Entry |
|
Decrease of Output Tax |
Adjustment of Output VAT Against Notional ITC |
Debit: VAT/Surcharge ledger Credit: Notional ITC ledger |
|
Increasing Notional Input Tax |
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Debit: Notional ITC ledger Credit: Indirect expense ledger |
|
Reversal of Notional Input Tax |
Purchases Not Eligible for Notional ITC U/S 13(5) |
Debit: Expenses ledger Credit: Notional ITC ledger |
|
Reversal of Notional Input Tax |
on Account of no stock |
Debit: Expenses ledger Credit: Notional ITC ledger |