Decrease in output tax can be adjusted by creating a journal for TDS adjustment.
To create a journal voucher for TDS adjustment
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 Type of duty/tax as VAT .
o Select Decrease of Output Tax , as the Nature of adjustment .
o Select the TDS Adjustments in Additional Details section.
Note: Based on the selection made for Nature of Adjustments , the Additional Details option either appears or disappears.
o Press Ctrl+A to return to the voucher.
3. Debit the output VAT. Enter the VAT Rate and Assessable value in VAT Details screen. Enter the tax amount.
4. Credit the ledger grouped under Current Assets . The journal voucher appears as shown below:
5. Press Enter to save.