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. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .

2. Enter the Supplier invoice no. and Date .

3. Select the party ledger in the field Party's A/c Name .

4. Select the purchase ledger grouped under Purchase Accounts with the Nature of transaction set to Purchase - Tax Free .

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. Press Enter to save.

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