Query on output VAT in Tally

i think the ledger of output vat is created under duties and taxes, so it is showing on liability side.

ok just create a new ledger called VAT receivable in loans and advances of asset side and transfer the balance by following entry

VAT Receivable a/c                                 Dr       XXXX

        To Output VAT a/c                                                       XXXX

The way suugested by Mr. Rajnikant is correct. But my apprehension is that how you have got excess Input Credit ? Unless & untill your are executng Works Contract, there is no way to have excess Input Credit as VAT is nothing but somehow tax on  value addition. Othewise you may have not claimed input credit in earlier years.