You can account for tax on purchases from unregistered dealers by creating a journal voucher.
To record journal entry to account tax on URD Purchase
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 field Type of duty/tax .
o Select the option Tax on URD Purchase in the Nature of adjustment field.
3. Debit the ledger created under the group Indirect Expenses and enter the amount.
4. Credit the VAT ledger.
o Enter the Rate , Assessable Value , and Commodity Code , and select the Commodity name of the item purchased in the VAT Details screen.
o Press Ctrl + A to accept and return to the voucher creation screen.
The completed screen appears as shown below:
5. Press Enter to save.