Add to Favourites

Tax Free Purchases (VAT)

You can record purchases of tax free goods by selecting the nature of transaction Purchase – Tax Free.

This nature of transaction is provided for Chandigarh, Delhi, Madhya Pradesh, Maharashtra, Punjab and Rajasthan.

1. Gateway of Tally > Vouchers > press F9 (Purchase).
   Alternatively, press Alt+G ( Go To) > Create Voucher > press F9 (Purchase).
2. Enter the Supplier Invoice No. and Date.
3. Select the party ledger in the field Party A/c name.
4. Select the purchase ledger grouped under Purchase Accounts with the Nature of transaction set to Purchase – Tax Free.
   As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > and press Enter.
5. Select the required stock item. Enter the Quantity and Rate.
6. Set the option Provide VAT details to Yes. In the Statutory Details screen:
   • Enter the purchase details as shown below:
     
     

     Note: Options in the above screen appear based on the State selected in the Company VAT Details screen.

   • Press Enter to save and return to the purchase invoice. The purchase invoice appears as shown below:
     
7. Accept the screen. As always, you can press Ctrl+A to save.

The value of this transaction gets captured in the relevant fields of state-specific VAT/CST forms and annexures.