Situations of Allow modification of tax details for VAT in F12 Sales invoice configuration

You might have scene an option Allow modification of Tax details for VAT under F12 Configuration.

Gateway of Tally>Accounting Voucher >F8 > F12 Configuration button.

Solution

While recording purchase or sales with VAT / CST, the following are the scenarios which require enabling F12 configuration – Allow modification of Tax Details for VAT 

 (i) When you are recording a sales entry with a common VAT ledger but selecting more than one stock item of different VAT rates.

(ii) When you have specified any VAT rate in the stock item master but you had mentioned VAT rate i.e. 5% in the Sales ledger .but in the entry you wanted to select the stock item for 'Interstate sales.

(iii) When you have not mentioned any VAT rate at item Master and sales ledger master then you can use the F12 option 'Allow modification of tax rate for VAT’. Otherwise not required.

(iv) When purchase or sales is of ‘Non Excise’ type but want to ‘Include Excise Duty’ ledger.

Note:-  While records purchase / sales by enabling ‘Excise’ type (Ctrl+E) then it is not required to enable F12 configuration. VAT / CST will automatically calculate by taking Excise Duty amount into account.

(v) When you select any additional expense / income ledger but not enabled the option ‘Include for assessable value calculation’ available in ledger master and if you want to consider the value of additional expense / income ledger for VAT calculation.

(vi) When company level has a common VAT / CST rate mentioned but no rate of VAT /CST is mentioned in ‘Item or ledger’ master then it is required enable F12 configuration.