You can record a journal voucher decrease in output tax.
To create journal voucher for decrease of output tax
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 Type of duty/tax field.
o Select the option Decrease of Output Tax in the Nature of adjustment field.
o Select the option Tax Deferred in Additional Details field.
o Press Enter to save and return to voucher screen.
3. Debit the VAT ledger.
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 the Debit column.
5. Credit the ledger grouped under Current Liabilities .
6. Set the option Provide VAT Details to Yes and enter the From and To dates, else retain it as No .
7. Enter Narration , if required. The journal voucher appears as shown below:
8. Press Enter to save.
The states with Decrease of Output Tax available as the Nature of Adjustment are given below:
State Name |
Nature of Adjustment |
Additional Details |
Voucher Entry |
Andhra Pradesh |
Decrease of Output Tax |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
Assam |
Decrease of Output Tax |
Not Applicable |
Debit: VAT ledger. Credit: Income/sales ledger. |
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT/CST ledger. Credit: Income ledger (predefined with the nature of transaction Labour Charges Collected or Interstate Labour Charges Collected ). |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Bihar |
Decrease of Output Tax |
Adjustment Against Tax Liability On Subsequent Sales |
Debit: VAT ledger. Credit: Ledger grouped under Indirect Incomes / Current Liabilities . |
Rebate |
Debit: VAT ledger. Credit: Income ledger. |
||
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
||
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Chandigarh |
Decrease of Output Tax |
Not Applicable |
Debit: Sales ledger. Debit: VAT ledger. Credit: Expenses ledger. |
Adjustment of Output VAT Against Notional ITC |
Debit: Expenses ledger. Credit: VAT ledger. |
||
Cash Discount on Sales |
Credit: Party ledger. Debit: Sales ledger. Debit: VAT ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
TDS on Works Contract |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Chhattisgarh |
Decrease of Output Tax |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger Credit: Party ledger or ledger grouped under Current Assets . |
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Tax Deferred on Purchase of Goods |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Tax Paid by Sub Contractor |
Debit: Sales ledger. Debit: VAT ledger. Credit: Sales ledger. Credit: Party ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Dadra and Nagar Haveli |
Decrease of Output Tax |
Bad Debts Written Off |
Debit: Expense ledger. Debit: VAT ledger. Credit: Party ledger. |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Delhi |
Decrease of Output Tax |
Bad Debts Written Off |
Debit: VAT ledger. Debit: Expenses ledger. Credit: Party ledger. |
Against CST |
Debit: CST Ledger. Credit: VAT ledger. |
||
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger Credit: Party ledger. |
||
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT ledger. Credit: Expense ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Gujarat |
Decrease of Output Tax |
Deposit on Voluntary Registration |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Ledger grouped under Current Assets . |
Sales of Commission Agent |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Party ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Ledger grouped under Current Assets . |
||
Towards Remission u/s 41 |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Income ledger. |
||
Haryana |
Decrease of Output Tax |
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
Himachal Pradesh |
Decrease of Output Tax |
Excess Paid |
Debit: VAT ledger. Credit VAT ledger. |
Purchase from Exempted Unit |
Debit: VAT ledger Credit: Expenses ledger. |
||
Purchase of Schedule-C Goods |
Debit: VAT ledger. Credit: Expense ledger. |
||
Jharkhand |
Decrease of Output Tax |
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT/CST ledger. Credit: Labour charges ledger (with nature of transaction Labour Charges Collected or Interstate Labour Charges Collected ). |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Karnataka |
Decrease of Output Tax |
Reversal of Labour and Service Charges |
Debit: VAT ledger. Credit: Expenses ledger. |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
||
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
||
Kerala |
Decrease of Output Tax |
Advance Tax |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities . |
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
||
Madhya Pradesh |
Decrease of Output Tax |
Tax Deferred |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities . |
Tax Exempted |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets . |
||
Tax Paid in Excess |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities . |
||
TDS Adjustments |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets . |
||
Maharashtra |
Decrease of Output Tax |
Works Contract - Labour/other charges |
Debit: VAT ledger. Credit: Expenses ledger. |
Odisha |
Decrease of Output Tax |
Advance Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
Credit note issued by seller (excess VAT in purchase) |
Debit: VAT ledger. Credit: Party ledger. |
||
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
||
Puducherry |
Decrease of Output Tax |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party/cash ledger. |
Tax on URD Purchase |
Debit: VAT ledger. Credit: Expense ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
||
Punjab |
Decrease of Output Tax |
Adjustment of Output VAT Against Notional ITC |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Notional tax ledger (the option Use for Notional ITC? has to be enabled in the ledger master). |
Cash Discount on Sales |
Debit: Sales ledger. Debit: VAT ledger. Debit: Surcharge ledger. Credit: Party ledger. |
||
TDS Adjustments |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Ledger grouped under Current Assets . |
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Trade Discount |
Debit: Sales ledger. Debit: VAT ledger. Debit: Surcharge ledger. Credit: Party ledger. |
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Rajasthan |
Decrease of Output Tax |
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities . |
Telangana |
Decrease of Output Tax |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets . |
Uttarakhand |
Decrease of Output Tax |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party ledger. |
West Bengal |
Decrease of Output Tax |
Tax Deferred |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities . or Debit: Ledger grouped under Current Liabilities . Credit: VAT/CST ledger. |
Tax Paid in Excess |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets . |