Material return

1) You will have to pass a Reverse Entry which is as follows :-

Sales A/c            Dr.                   XXXXX (Gross Amount)

 To Sundry Debtors A/c                           XXXXX (Gross Amount)

(Being goods returned by Customer)

Note : Pass the above entry as Credit Note 

2) No. You cannot take the Input Tax Credit of the same.

But sir, from above entry (credit note) my Sales reduced excess by Rs.1000/- ie Vat amt.

At the time of sale we not considared vat as Sales.

pl suggest.