Decrease of Output Tax (VAT)
You can record a journal voucher for decrease of output tax.
- 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 the option VAT in the Type of duty/tax field.
- Select the option Decrease of Output Tax in the Nature of adjustment field.
- Select the option Tax Deferred in Additional Details field.
- Press Enter to save and return to voucher screen.
- Debit the VAT ledger.
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 and Assessable Value in the VAT Details screen.
- Press Enter to return to voucher screen.
- Enter the amount in the Debit column.
- Credit the ledger grouped under Current Liabilities.
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. - Set the option Provide VAT Details to Yes and enter the From and To dates, else retain it as No.
- Enter Narration, if required. The journal voucher appears as shown below:
- Accept the screen. As always, you can press Ctrl+A to save.
The states with Decrease of Output Tax available as the Nature of Adjustment are given below:
|
State Name |
Additional Details |
Voucher Entry |
|
Andhra Pradesh |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Assam |
Not Applicable |
Debit: VAT ledger. Credit: Income/sales ledger. |
|
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT/CST ledger. Credit: Income ledger (predefined with the nature of transaction Labour Charges Collected or Interstate Labour Charges Collected). |
|
|
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Bihar |
Adjustment Against Tax Liability On Subsequent Sales |
Debit: VAT ledger. Credit: Ledger grouped under Indirect Incomes/Current Liabilities. |
|
Rebate |
Debit: VAT ledger. Credit: Income ledger. |
|
|
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
|
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Chandigarh |
Not Applicable |
Debit: Sales ledger. Debit: VAT ledger. Credit: Expenses ledger. |
|
Adjustment of Output VAT Against Notional ITC |
Debit: Expenses ledger. Credit: VAT ledger. |
|
|
Cash Discount on Sales |
Credit: Party ledger. Debit: Sales ledger. Debit: VAT ledger. |
|
|
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
TDS on Works Contract |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Chhattisgarh |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger Credit: Party ledger or ledger grouped under Current Assets. |
|
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Tax Deferred on Purchase of Goods |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Tax Paid by Sub Contractor |
Debit: Sales ledger. Debit: VAT ledger. Credit: Sales ledger. Credit: Party ledger. |
|
|
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Dadra and Nagar Haveli |
Bad Debts Written Off |
Debit: Expense ledger. Debit: VAT ledger. Credit: Party ledger. |
|
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party ledger. |
|
|
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Delhi |
Bad Debts Written Off |
Debit: VAT ledger. Debit: Expenses ledger. Credit: Party ledger. |
|
Against CST |
Debit: CST Ledger. Credit: VAT ledger. |
|
|
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger Credit: Party ledger. |
|
|
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT ledger. Credit: Expense ledger. |
|
|
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Gujarat |
Deposit on Voluntary Registration |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Ledger grouped under Current Assets. |
|
Sales of Commission Agent |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Party ledger. |
|
|
TDS Adjustments |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Ledger grouped under Current Assets. |
|
|
Towards Remission u/s 41 |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Income ledger. |
|
|
Haryana |
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
Himachal Pradesh |
Excess Paid |
Debit: VAT ledger. Credit VAT ledger. |
|
Purchase from Exempted Unit |
Debit: VAT ledger Credit: Expenses ledger. |
|
|
Purchase of Schedule-C Goods |
Debit: VAT ledger. Credit: Expense ledger. |
|
|
Jharkhand |
Reversal of Labour and Service Charges |
Debit: Sales ledger. Debit: VAT/CST ledger. Credit: Labour charges ledger (with nature of transaction Labour Charges Collected or Interstate Labour Charges Collected). |
|
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Karnataka |
Reversal of Labour and Service Charges |
Debit: VAT ledger. Credit: Expenses ledger. |
|
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
|
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
|
Kerala |
Advance Tax |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities. |
|
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
|
Madhya Pradesh |
Tax Deferred |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities. |
|
Tax Exempted |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets. |
|
|
Tax Paid in Excess |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities. |
|
|
TDS Adjustments |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets. |
|
|
Maharashtra |
Works Contract – Labour/other charges |
Debit: VAT ledger. Credit: Expenses ledger. |
|
Odisha |
Advance Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Credit note issued by seller (excess VAT in purchase) |
Debit: VAT ledger. Credit: Party ledger. |
|
|
Tax Paid in Excess |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
|
Puducherry |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party/cash ledger. |
|
Tax on URD Purchase |
Debit: VAT ledger. Credit: Expense ledger. |
|
|
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Punjab |
Adjustment of Output VAT Against Notional ITC |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Notional tax ledger (the option Use for Notional ITC? has to be enabled in the ledger master). |
|
Cash Discount on Sales |
Debit: Sales ledger. Debit: VAT ledger. Debit: Surcharge ledger. Credit: Party ledger. |
|
|
TDS Adjustments |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Ledger grouped under Current Assets. |
|
|
Trade Discount |
Debit: Sales ledger. Debit: VAT ledger. Debit: Surcharge ledger. Credit: Party ledger. |
|
|
Rajasthan |
Tax Deferred |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
Telangana |
TDS Adjustments |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Uttarakhand |
Other Adjustments |
Debit: Sales ledger. Debit: VAT ledger. Credit: Party ledger. |
|
West Bengal |
Tax Deferred |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Liabilities. or Debit: Ledger grouped under Current Liabilities. Credit: VAT/CST ledger. |
|
Tax Paid in Excess |
Debit: VAT/CST ledger. Credit: Ledger grouped under Current Assets. |