Calculating VAT on item rate

In some states, like Delhi, VAT is calculated on the item rate.

Company configuration

To configure VAT on item rate

1. Go to F11: Features > F3: Statutory & Taxation .

2. Enable Set/alter tax/rate details .

3. Select the State.

4. Set Enable VAT on stock item rate to Yes .

Item configuration

1. Go to Inventory info > Stock items > Create/Alter .

2. Enable Set/alter VAT details .

3. Select On item rate as the Calculation type .

4. Specify the rate slabs and the tax rate for each slab.