When purchasing raw materials (inputs), the duty amount can be accounted for as an additional expense on the purchase. Later, there may be a need to account it as CENVAT credit. To adjust the duty amount, a journal voucher has to be recorded with the flag Availment of CENVAT Credit (Inputs) .
To record the adjustment entry
1. Go to Gateway of Tally > Accounting Vouchers > F7: Journal .
2. Click J : Stat Adjustment .
3. Enter the Type of Duty/Tax , Tax Unit , and Nature of Adjustment in the Stat Adjustment Details screen.
4. Press Enter .
5. Press Enter to accept the Tax Unit .
The Tax Unit selected in the Stat Adjustment Details screen will be displayed here. Press Spacebar to change the Tax Unit .
6. Debit the required duty ledger.
7. Credit the required duty ledger.
8. Enter the Narration , if required.
9. Press Enter .
The completed adjustment entry is as shown below:
10. Press Enter to save.
The adjustment entry recorded using the flag Availment of CENVAT Credit (Inputs) is displayed under Credit on Inputs .
Press Enter on Credit on Inputs to view the Cenvat Credit Availed report.