Journal entry

Dear srikumar,

Just like normal entry of purchase,you can enter it in tally but incase of vat you have to claim the itc in three installments i.e. 1/3rd of total credit in one installment. but you have to claim the itc in same qtr of next two year. 

Ex. if u claim itc on 1st qtr 2012-13 then remaining two installment should be claimed in 1st qtr of 13-14 and 14-15.