https://help.tallysolutions.com/docs/te9rel64/Tax_India/VAT/vat_sales/sales_tax_free.htm

Sales - Tax Free (VAT)

You can create vouchers for tax free sales.

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

To record an invoice for tax free sales

1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .

2. Enter the Reference no.

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

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

5. Select the stock item. Enter the Quantity and Rate .

6. Set the option Provide VAT Details? to Yes . In the Statutory Details screen

o Enter the sales 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 sales invoice.

The sales invoice appears as shown below:

7. Press Enter to save.