Input Credit for capital goods is available over a maximum period of 36 monthly installments (States have the option to reduce the number of installments).
The entry for the Purchase of Capital Goods is the same as in default Tally.
Let us consider the following example for the adjustment of the Input credit.
Purchase of Capital Goods for Rs. 5,00,000.
The Input Credit is Rs. 20,000, which will be available over a period of 36 monthly installments.
That is, (20,000/36) = 555.56
Hence, Rs. 555.56 can be claimed in the first installment as Input credit.
The Journal entry for this is passed as shown below.
The Drill down report will be displayed as follows.
Further Drill down report will be displayed as follows:
