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Increase in Notional Input Tax (VAT)

You can create a journal voucher to account for the increase in notional tax credit for Punjab VAT.

1. Gateway of Tally > Vouchers > press F7 (Journal).
   Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
   

   Note: You can create a journal voucher from Gateway of Tally > Display More Reports > VAT Reports > select the VAT or CST form.

2. Press Alt+J (Stat Adjustment). In the Stat Adjustment Details screen,
   • Select the option VAT in the Type of duty/tax field.
   • Select the option Increasing Notional Input Tax in the Nature of adjustment field.
   • Press Enter to save and return to the voucher screen.
3. Debit the notional tax credit ledger (grouped under Duties & Taxes with Type of duty/tax as VAT, and the option Use for notional ITC set to Yes).
   As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > and press Enter.
   • Enter the Rate, Surcharge Rate and Assessable Value in the VAT Details screen.
   • Press Enter to return to voucher screen.
4. Credit the expense ledger grouped under Indirect Expenses.
   As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > and press Enter. 
   The journal voucher appears as shown below:
   
5. Accept the screen. As always, you can press Ctrl+A to save.