Unit 6 – Transactions 157
Month
Select the month from the list for which you are entering a VAT Journal voucher.
Input Tax Adjustment
Input Tax is the tax paid on the purchase of goods. In this grid, you can enter transactions regarding adjustment of Input Tax. Various fields under this grid are:
Tax Increase / Decrease
Select Tax Increased option if the transaction you are entering is for increased Input Tax. Otherwise, select the Tax Decreased option, if the transaction you are entering is for decreased Input Tax.
Nature
Select the nature of transaction due to which Input Tax is increased / decreased. For example, you have sold an item to a company for Rs. 21,000 on which you charged VAT @ 5% i.e. Rs. 1,050. Later on, you discover that the actual price of the item is Rs. 27,000 and by mistake, it was entered as Rs. 21,000. Now you will take that extra amount from the party and due to this, Input Tax will also be increased to Rs. 1,350. Now for adjusting Rs. 300 (i.e. Rs. 1,350 – Rs. 1,050) you have to enter a VAT Journal voucher and select the Nature as On A/c of Price Change.
Increased Amount
Focus comes to this data field only if you have selected Tax Increased option. Specify the amount of Input Tax for which you are entering the transaction. Continuing with above example, you have to enter Rs. 200 in this field.
Increased Surcharge
This data field gets activated if Tax Increased option is selected from the Tax Increase / Decrease data field and Surcharge is enabled in the company. Enter the amount of increased surcharge in this data field.
Decreased Amount
This data field gets activated if Tax Decreased option is selected from the Tax Increase / Decrease data field. Enter the amount of decreased Input Tax in this data field.
Decreased Surcharge
This data field gets activated if Tax Increased option is selected from the Tax Increase / Decrease data field and Surcharge is enabled in the company. Enter the amount of decreased surcharge in this data field.
Description
This data field is active only if you have selected Other option in the Nature data field. Enter a description about the nature of transaction.
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Output Tax Adjustment
Output Tax is the tax charged on sale of goods. In this grid, you can enter transactions regarding adjustment of Output Tax. All the fields in this grid are similar to the one that appear for Input Tax with only difference that data entered in these fields will be for adjusting output tax.
Refund to be Claimed for the Balance Input Tax
Enter the amount of Input Tax that is to be claimed from the government. For example, Star Electronics Company purchases ten computers with Bar Codes for its billing counters on which it paid Rs. 5,000 as VAT to the government. Since the goods i.e. computers are purchased for use in business, the Company can claim Rs. 5,000 from the government. Further Star Electronics makes a sale transaction and charges Rs. 3,000 as VAT, which is to be deposited to the government. In this case company can adjust Rs. 3,000 with the amount to be claimed from the government i.e. Rs. 5,000. After adjustment, Rs. 2,000 balance remains with the government, which the company can claim later on. This balance of Rs. 2,000 is the refund amount to be claimed from the government.
Refund to be Claimed for Surcharge
This data field appears if you have enabled Surcharge for the company. Specify the surcharge amount to be claimed from the government.
After entering appropriate data in the data fields, click the Save button to save the Journal voucher.
