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Input Tax Adjustment for Purchases from URDs (VAT)

Input Tax Adjustment for Purchases from URDs (VAT)

You can create a journal voucher to record input tax adjustment for purchases from URDs or unregistered dealers. This will help you account for tax credit on such purchases.

  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.
    • 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 Input Tax Adjustment for Purchases From URDs in the Nature of adjustment field.
    • Press Enter to save and return to voucher screen.
  2. Debit the VAT ledger.
    1. Enter the Rate and Assessable Value in the VAT Details screen.
    2. Press Enter to return to voucher screen.
  3. Enter the amount in the Debit column.
  4. Credit the ledger grouped under Current Assets.
  5. Enter Narration, if required. The journal voucher appears as shown below:             
  6. Accept the screen. As always, you can press Ctrl+A to save.

The states with Input Tax Adjustment for Purchases From URDs available as the Nature of Adjustment are given below:

State Name

Additional Details

Voucher Entry

Bihar

—

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Jammu and Kashmir

—

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Karnataka

Not Applicable

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Previous Period

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets.

Odisha

—

Debit: VAT ledger.

Credit: VAT ledger.

Puducherry

Deduction U/s 6A of Earlier Law (On Going)

Debit: VAT ledger.

Credit: Ledger grouped under Current Assets or Indirect Expenses.

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