Notional Input Tax Credit (VAT)
You can record notional tax credits on capital goods and non-capital goods, in a journal voucher for Chandigarh VAT.
- 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.
- Press Alt+J (Stat Adjustment). In the Stat Adjustment Details screen.
- Select Type of duty/tax as VAT.
- Select Notional Input Tax credit as the Nature of Adjustment.
- Select on Capital Goods in Additional Details section.
Note: Based on the selection made for Nature of Adjustments, the Additional Details option either appears or disappears.
- Press Ctrl+A to return to the voucher.
- Debit the notional input tax ledger.
Note: To identify a ledger for notional tax, in the ledger grouped under Duties & Taxes with Type of duty/tax set to VAT, set the option Use for Notional ITC to Yes.
- Select the purchase reference and enter the purchase details in Credit Settlement Details screen.
- Enter the tax amount.
- Credit the ledger grouped under Current Assets.
- Accept the screen. As always, you can press Ctrl+A to save.
While recording the journal voucher for Notional Input Tax Credit with Additional Details set as on Non Capital Goods, debit the notional tax ledger and credit the expense ledger.
