https://help.tallysolutions.com/docs/te9rel64/Tax_India/VAT/vat_purchases/pur_tax_free.htm

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.

To record an invoice for purchase of tax free goods

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

o 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.

o 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.