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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. Gateway of Tally > Vouchers > press F9 (Purchase).
    Alternatively, press Alt+G ( Go To) > Create Voucher > press F9 (Purchase).
  2. Enter the Supplier Invoice No. and Date.
  3. Select the party ledger in the field Party A/c name.
  4. Select the purchase ledger grouped under Purchase Accounts with the Nature of transaction set to Purchase – Tax Free.
    As in other transactions, you can create the ledger on the fly by pressing Alt+C. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > and press Enter.
  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. Accept the screen. As always, you can press Ctrl+A to save.

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

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