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Tax on Purchase from Unregistered Dealers (VAT)

You can account for tax on purchases from unregistered dealers by creating a journal voucher.

  1. Gateway of Tally > Vouchers > press F7 (Journal).
    Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
  2. Press Alt+J (Stat Adjustment) , select the options as given below:
    • Type of duty/tax – VAT.
    • Nature of Adjustment – Tax on URD Purchase.
    • Press Enter to save and return to the voucher screen.
  3. Debit the ledger created under the group Indirect Expenses and enter the amount.
  4. Credit the VAT ledger.
    As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter. 
    • Enter the Rate, Assessable Value, and Commodity Code, and select the Commodity name of the item purchased in the VAT Details screen. The VAT Details screen appears as shown below:

      Note: The columns in the VAT Details screen appear based on the State selected in the Company Creation screen. In this example, Bihar is selected as the State.
    • Press Enter to return to voucher screen. The journal voucher appears as shown below:
  5. Accept the screen. As always, you can press Ctrl+A to save.

The states with Tax on URD Purchase available as the Nature of Adjustment are given below:

State Name

Nature of Adjustment

Additional Details

Voucher Entry

Andhra Pradesh

Tax on URD Purchase

Debit: Expense ledger.

Credit: VAT ledger.

Assam

Tax on URD Purchase

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Bihar

Tax on URD Purchase

Debit: Expense ledger.

Credit: VAT ledger.

Chandigarh

Tax on URD Purchase

Debit: Purchase ledger.

Credit: VAT ledger.

Chhattisgarh

Tax on URD Purchase

Debit: Ledger grouped under Current Assets.

Credit: VAT ledger.

Gujarat

Tax on URD Purchase

Debit: Ledger grouped under Current Assets.

Credit: VAT ledger.

Credit: Additional tax ledger.

Haryana

Tax on URD Purchase

Purchase at Lower Rate

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase at Lower Rate – Declared Goods

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase Without Payment of Tax

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Purchase Without Payment of Tax – Declared Goods

Debit: Expense ledger.

Credit: VAT ledger.

Credit: Expense/purchase ledger.

Himachal Pradesh

Tax on URD Purchase

Not Applicable

Debit: Expense ledger.

Credit: VAT ledger.

Purchase of Schedule-C Goods

Debit: Expense ledger.

Credit: VAT ledger.

Jammu and Kashmir

Tax on URD Purchase

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Jharkhand

Tax on URD Purchase

Debit: Expense ledger.

Credit: VAT ledger.

Karnataka

Tax on URD Purchase

Debit: Expense ledger.

Credit: VAT ledger.

Kerala

Tax on URD Purchase

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Madhya Pradesh

Tax on URD Purchase

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Odisha

Tax on URD Purchase

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Puducherry

Tax on URD Purchase

Debit: Expense ledger.

Credit: VAT ledger.

Punjab

Tax on URD Purchase

Debit: Expense ledger.

Credit: VAT ledger.

credit: Surcharge ledger.

Rajasthan

Tax on URD Purchase

Debit: Expense ledger.

Credit: VAT ledger.

Telangana

Tax on URD Purchase

Debit: Expense ledger.

Credit: VAT ledger.

Uttar Pradesh

Tax on URD Purchase

Debit: Purchase ledger.

Credit: VAT ledger.

West Bengal

Tax on URD Purchase

Debit: Expense/purchase ledger.

Credit: VAT ledger.

 

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