To account for purchase
of capital goods and tax credit to be claimed in installments
follow the steps given below:
Go to Gateway of Tally > Accounting Vouchers > F9: Purchase
Click on F11: Features button. In the Accounting Features screen, set Maintain Bill-wise Details (for
Non-Trading A/c also) to Yes. Accept the screen.
Click on Ctrl+V button to view the voucher mode.
In F12: Configure button set Allow Expenses/Fixed Assets in Purchase Vouchers option to Yes
Credit: Party ledger
Debit: Machinery-I ledger (grouped under Fixed Assets with VAT/Tax class
provided for respective states with the VAT/Tax class - Purchases - Capital Goods @ 5%)
Debit: Tax on Capital Goods @
5% ledger (grouped
Assets with Maintain
balances bill-by-bill to Yes)
Enter the bill-wise
details for Tax on Capital Goods @ 5% ledger.
Go to Gateway of Tally > Accounting Vouchers > F7: Journals > Select the voucher class created for VAT Adjustment from the Voucher Class List
In the states where ITC on capital goods is
allowed to be claimed in installments, the VAT adjustment - Input Tax
Credit Admitted on Capital Goods has been provided. Select the same in the Used for field of journal voucher.
Debit: Input Capital Goods @ 5% ledger (grouped under Duties & Taxes with Type of Duty/Tax as VAT and the VAT/Tax class - Purchases - Capital
Goods @ 5%) and enter the installment
Credit: Tax on Capital Goods
@ 5% ledger (grouped under Current Assets) and enter the installment amount
Note: Currently the VAT Adjustment - Input Tax Credit Admitted on Capital Goods is provided for VAT enabled companies of Goa, Kerala, Puducherry,
Tamil Nadu and Uttar Pradesh.