You can specify the unit of measurement when creating stock items.
To create item with VAT applicable on quantity
1. Go to Gateway of Tally > Inventory Info. > Stock Items > Create.
2. Enter the Name of the stock item.
3. Select the required group in the Under field.
4. Select the required unit of measurement in Units field.
5. Set the option VAT Applicable to Applicable.
6. Enable the option Set/alter VAT details? to open the VAT Details screen.
o Set the Classification option in VAT Details screen to Undefined if unique tax rate and commodity details have to be defined.
o Select the Calculation type as On Quantity.
o Select the Reporting unit of measure.
o Enter the Tax rate.
o Select the Schedule.
The VAT Details screen appears as shown below:
o Press Enter to save the VAT Details screen.
7. Press Ctrl+A to accept the stock item master.
Note: Set the option Enable VAT calculation on quantity? to Yes in Company VAT Details screen for creating masters with VAT on quantity.
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