diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index e486989..be49bf5 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -386,3 +386,5 @@
 				not all([cint(t.included_in_print_rate) for t in doc.get("taxes")[:cint(tax.row_id) - 1]]):
 			# all rows about the reffered tax should be inclusive
 			_on_previous_row_error("1 - %d" % (tax.row_id,))
+		elif tax.category == "Valuation":
+			frappe.throw(_("Valuation type charges can not marked as Inclusive"))
diff --git a/erpnext/public/js/controllers/accounts.js b/erpnext/public/js/controllers/accounts.js
index d0f27bc..35d8c66 100644
--- a/erpnext/public/js/controllers/accounts.js
+++ b/erpnext/public/js/controllers/accounts.js
@@ -76,6 +76,8 @@
 				// all rows above this tax should be inclusive
 				on_previous_row_error(tax.row_id == 1 ? "1" : "1 - " + tax.row_id);
 			}
+		} else if(tax.category == "Valuation") {
+			frappe.throw(__("Valuation type charges can not marked as Inclusive"));
 		}
 	}
 }