Reducing Tax Liability (VAT)
You can record a journal voucher to capture the reduction of tax liability due to prior payments.
- Gateway of Tally > Vouchers > press F7 (Journal).
Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal). - Press Alt+J (Stat Adjustment) , select the options as given below:
- Type of duty/tax – VAT.
- Nature of Adjustment – Reducing Tax Liability.
- Additional Details – Entry Tax.
Note: The options for Additional Details are provided as per state specific requirements of VAT/CST forms and annexures. In this example, Bihar is selected as the State.
- Press Enter to save and return to voucher screen.
- Debit the VAT ledger, and enter the relevant details in the VAT Details screen.
- Enter the amount in the Debit column.
- Credit the ledger grouped under Current Assets.
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. - Set the option Provide VAT details to Yes, and enter the relevant details.
Note: The option Provide VAT Details is provided as per state specific requirements of VAT/CST forms and annexures. In this example, Bihar is selected as the State.
- 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 Input Tax Credit Admitted On Capital Goods available as the Nature of Adjustment are given below:
|
State Name |
Additional Details |
Voucher Entry |
|
Bihar |
Advance Tax Paid |
Debit: VAT ledger or ledger grouped under Current Liabilities. Credit: Ledger grouped under Current Assets. |
|
Entry Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Chhattisgarh |
Adjusting with ITC |
Debit: VAT ledger. Credit: VAT ledger. |
|
Adjusting with ITC of Capital Goods |
Debit: VAT ledger. Credit: VAT ledger. |
|
|
Gujarat |
Entry Tax |
Debit: VAT ledger. Debit: Additional tax ledger. Credit: Ledger grouped under Current Assets. |
|
Jharkhand |
Entry Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
Kerala |
Entry Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Madhya Pradesh |
Adjusting with ITC |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |
|
Maharashtra |
Adjustment of Tax As Per Form 234 |
Debit: CST ledger. Credit: Expense ledger. |
|
Entry Tax |
Debit: VAT ledger. Credit: Expense ledger. |
|
|
Entry Tax on Motor Vehicle |
Debit: VAT ledger. Credit: Expense ledger. |
|
|
TCS Adjustment |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Puducherry |
Advance Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
Refund |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Punjab |
Advance Tax Deducted |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Ledger grouped under Current Assets. |
|
Advance Tax Paid |
Debit: VAT ledger. Debit: Surcharge ledger. Credit: Ledger grouped under Current Assets. |
|
|
Entry Tax |
Debit: VAT ledger. Credit: Ledger grouped under Current Assets. |
|
|
Uttar Pradesh |
Adjusting with ITC |
Debit: VAT ledger. Credit: Ledger grouped under Current Liabilities. |