Recording a Transaction for Increase in Input Tax

You can record a transaction for increase of input tax in journal voucher.

To account for increase in input 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 Type of duty/tax as VAT .

o Select Increasing Input Tax , as the Nature of adjustment .

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 expense ledger and enter the amount.

4. Credit the input VAT ledger. Enter the tax Rate and Assessable Value in VAT Details screen. The journal voucher appears as shown below:

5. Press Enter to save.

The states with Increasing Input Tax available as the Nature of Adjustment are given below:

State Name	Nature of Adjustment	Additional Details	Voucher Entry
Assam	Increasing Input Tax	Set off for tax paid under Section 10 (1A) Sales	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
Chandigarh	Increasing Input Tax	Installment of Input Tax on Stock Held on Appointed Day	Debit: Expenses ledger. Credit: VAT ledger.
Chhattisgarh	Increasing Input Tax	---	Debit: VAT ledger (in the Rate field of VAT Details screen, the tax rate should be specified as 1%). Credit: Expenses ledger.
Dadra and Nagar Haveli	Increasing Input Tax	Change in Use of Goods, for Purchase for Which Credit Allowed	Debit: VAT ledger. Credit: Purchase ledger.
		Opening Stock	Debit: VAT ledger. Credit: Purchase ledger.
		Other Adjustments	Debit: Purchase ledger. Debit: VAT ledger. Credit: Party ledger.
		Switch Over	Debit: VAT ledger. Credit: Purchase ledger.
		Tax Credit for Purchase of Second-Hand Goods	Debit: VAT ledger. Credit: Purchase ledger.
		Transitional Opening Stock	Debit: VAT ledger. Credit: Purchase ledger.
Delhi	Increasing Input Tax	Change in Use of Goods, for Purchase for Which Credit Allowed	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
		Not Applicable	Debit: VAT ledger. Credit: Expense ledger.
		Opening Stock	Debit: VAT ledger. Credit: Purchase ledger.
		Switch Over	Debit: VAT ledger. Credit: Purchase ledger.
		Tax Credit for Purchase of Second-Hand Goods	Debit: VAT ledger. Credit: Purchase ledger.
		Other Adjustments	Debit: Purchase ledger. Debit: VAT ledger. Credit: Party ledger.
		Balance Tax Credit on Right to Use Goods	Debit: Purchase ledger. Debit: VAT ledger. Credit: Expenses ledger.
Goa	Increasing Input Tax	Entry Tax Paid	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
		ITC on Net Present Value Scheme	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
		Opening Stock	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
Himachal Pradesh	Increasing Input Tax	Opening Stock	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
Jharkhand	Increasing Input Tax	Attributable Input Tax Towards Exempted Sales	Debit: Expenses ledger. Credit: VAT ledger.
Jharkhand	Increasing Input Tax	Opening Stock	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
Kerala	Increasing Input Tax	Adjustment Against Arrears	Debit: Ledger grouped under Current Liabilities . Credit: VAT ledger.
Madhya Pradesh	Increasing Input Tax	Others	Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities .
Maharashtra	Increasing Input Tax	Tax Credit Not Claimed on Goods Return	Debit: VAT ledger. Credit: Purchase ledger.
Odisha	Increasing Input Tax	Adjustment of ITC Towards Transfer Rights	Debit: Expenses ledger. Credit: VAT ledger.
		Adjustments Towards Transfer Rights - Previous Return	Debit: Expenses ledger. Credit: VAT ledger.
		Debit note issued to buyer (insufficient VAT in sales)	Debit: VAT ledger. Credit: Party ledger.
		Opening Stock	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
		Refund disallowed	Debit: VAT ledger. Credit: Expense/income ledger.
Puducherry	Increasing Input Tax	Opening Stock	Debit: VAT ledger. Credit: Ledger grouped under Current Assets / Purchase Accounts .
		Other Adjustments	Debit: Purchase ledger. Debit: VAT ledger. Credit: party/cash ledger.
		Switch Over	Debit: VAT ledger. Credit: Purchase ledger.
		Tax Adjustment Towards Transfer of Right to Use	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
		Tax Credit of Purchase of Second-Hand Goods	Debit: VAT ledger. Credit: Ledger grouped under Current Assets / Purchase Accounts .
Punjab	Increasing Input Tax	Goods Received Back After Job Work	Debit: VAT ledger. Debit: Surcharge ledger. Credit: Current Assets ledger.
Rajasthan	Increasing Input Tax	Opening Stock	Debit: VAT ledger. Credit: Purchase ledger.
Uttarakhand	Increasing Input Tax	Opening Stock	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
Uttar Pradesh	Increasing Input Tax	Opening Stock	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
West Bengal	Increasing Input Tax	Opening Stock	Debit: VAT ledger. Credit: Ledger grouped under Current Assets .
West Bengal	Increasing Input Tax	Short Claimed Earlier	Debit: VAT ledger. Credit: Purchase/expense ledger.