Recording a Transaction for Increase of Tax Liability

You can create a journal voucher for increase in tax liability.

To create journal voucher for increase of tax liability

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 to enable the required options in Stat Adjustment Details screen.

● In the Stat Adjustment Details screen,

o Select the option VAT in the Type of duty/tax field.

o Select the option Increase of Tax Liability in the Nature of adjustment field.

o Select the option Interest in Additional Details field.

o Press Enter to save and return to voucher screen.

3. Credit the ledger grouped under Indirect Expenses .

4. Enter the amount in the Debit column.

5. Debit the ledger grouped under Current Liabilities .

6. Set the option Provide VAT Details? to Yes , and enter the relevant details.

Note: The option Provide VAT Details? is provided as per state specific requirements of VAT/CST forms and annexures. In this example, Bihar is selected as the State .

7. Enter Narration , if required.

The journal voucher appears as shown below:

8. Press Enter to save.

The states with Increase of Tax Liability available as the Nature of Adjustment are given below:

State Name	Nature of Adjustment	Additional Details	Voucher Entry
Andhra Pradesh	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Andhra Pradesh	Increase of Tax Liability	Penalty	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Assam	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Interest, Penalty, Other Dues	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Penalty	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Bihar	Increase of Tax Liability	Additional Tax	Debit: VAT ledger. Credit: Ledger grouped under Indirect Expenses / Current Liabilities .
		Interest	Debit: Expenses ledger. Credit: VAT/CST ledger or ledger grouped under Current Liabilities .
		Penalty	Debit: Expenses ledger. Credit: VAT/CST ledger or ledger grouped under Current Liabilities .
		Surcharge	Debit: VAT ledger. Credit: Ledger grouped under Indirect Expenses / Current Liabilities .
Chandigarh	Increase of Tax Liability	Sales by Hire Purchase Or Instalment Purchase	Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities .
Chandigarh	Increase of Tax Liability	Schedule H Items	Debit: Expenses ledger. Credit: VAT ledger.
Chhattisgarh	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Dadra and Nagar Haveli	Increase of Tax Liability	Interest, Penalty, Other Dues	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Dadra and Nagar Haveli	Increase of Tax Liability	Tax Payable on Goods Held on the Date of Cancellation of Registration	Debit: Expenses ledger. Credit: VAT ledger.
Delhi	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Penalty	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Tax Payable on Goods Held on the Date of Cancellation of Registration	Debit: Expenses ledger Credit: VAT ledger.
Gujarat	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Gujarat	Increase of Tax Liability	Penalty	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Himachal Pradesh	Increase of Tax Liability	Interest, Penalty, Other Dues	Debit: Expenses ledger or ledger grouped under Current Liabilities . Credit: VAT ledger.
Jharkhand	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Penalty	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Tax Deferred	Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities .
Karnataka	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Karnataka	Increase of Tax Liability	Others	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Kerala	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Penalty	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Settlement Fee Payable	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Madhya Pradesh	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Maharashtra	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Late Fees	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Switch Over	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Odisha	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Puducherry	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Others	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Penalty	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Tax Payable on Goods Held on the Date of Cancellation of Registration	Debit: Expenses ledger. Credit: VAT ledger.
Punjab	Increase of Tax Liability	Interest	Debit: Expense ledger. Credit: VAT ledger. Credit: Surcharge ledger.
		Others	Debit: Expense ledger. Credit: VAT ledger. Credit: Surcharge ledger.
		Other Payments	Debit: Expense ledger. Credit: VAT ledger. Credit: Surcharge ledger.
		Penalty	Debit: Expense ledger. Credit: VAT ledger. Credit: Surcharge ledger.
		Purchase Tax Sch. H Items	Debit: Ledger grouped under Current Assets . Credit: VAT ledger. Credit: Surcharge ledger.
Rajasthan	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Late Fees	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Switch Over	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Telangana	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Telangana	Increase of Tax Liability	Penalty	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
Uttar Pradesh	Increase of Tax Liability	Compounding Scheme Liability	Debit: Expenses ledger. Credit: VAT ledger.
Uttar Pradesh	Increase of Tax Liability	Switch Over	Debit: Expenses ledger. Credit: VAT ledger.
West Bengal	Increase of Tax Liability	Interest	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Interest Payable Under Section 33	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Late Fees	Debit: Expenses ledger. Credit: Ledger grouped under Current Liabilities .
		Short Paid Earlier	Debit: VAT ledger. Credit: sales/income ledger.