diff --git a/erpnext/accounts/doctype/accounts_settings/accounts_settings.json b/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
index 6857ba343ec..061bab320e6 100644
--- a/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
+++ b/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
@@ -32,6 +32,7 @@
   "column_break_19",
   "add_taxes_from_item_tax_template",
   "book_tax_discount_loss",
+  "round_row_wise_tax",
   "print_settings",
   "show_inclusive_tax_in_print",
   "show_taxes_as_table_in_print",
@@ -414,6 +415,13 @@
    "fieldname": "ignore_account_closing_balance",
    "fieldtype": "Check",
    "label": "Ignore Account Closing Balance"
+  },
+  {
+   "default": "0",
+   "description": "Tax Amount will be rounded on a row(items) level",
+   "fieldname": "round_row_wise_tax",
+   "fieldtype": "Check",
+   "label": "Round Tax Amount Row-wise"
   }
  ],
  "icon": "icon-cog",
@@ -421,7 +429,7 @@
  "index_web_pages_for_search": 1,
  "issingle": 1,
  "links": [],
- "modified": "2023-07-27 15:05:34.000264",
+ "modified": "2023-08-28 00:12:02.740633",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Accounts Settings",
diff --git a/erpnext/controllers/taxes_and_totals.py b/erpnext/controllers/taxes_and_totals.py
index 95bf0e4688e..96284d612fa 100644
--- a/erpnext/controllers/taxes_and_totals.py
+++ b/erpnext/controllers/taxes_and_totals.py
@@ -25,6 +25,9 @@ class calculate_taxes_and_totals(object):
 	def __init__(self, doc: Document):
 		self.doc = doc
 		frappe.flags.round_off_applicable_accounts = []
+		frappe.flags.round_row_wise_tax = frappe.db.get_single_value(
+			"Accounts Settings", "round_row_wise_tax"
+		)
 
 		self._items = self.filter_rows() if self.doc.doctype == "Quotation" else self.doc.get("items")
 
@@ -370,6 +373,8 @@ class calculate_taxes_and_totals(object):
 			for i, tax in enumerate(self.doc.get("taxes")):
 				# tax_amount represents the amount of tax for the current step
 				current_tax_amount = self.get_current_tax_amount(item, tax, item_tax_map)
+				if frappe.flags.round_row_wise_tax:
+					current_tax_amount = flt(current_tax_amount, tax.precision("tax_amount"))
 
 				# Adjust divisional loss to the last item
 				if tax.charge_type == "Actual":
@@ -480,10 +485,19 @@ class calculate_taxes_and_totals(object):
 		# store tax breakup for each item
 		key = item.item_code or item.item_name
 		item_wise_tax_amount = current_tax_amount * self.doc.conversion_rate
-		if tax.item_wise_tax_detail.get(key):
-			item_wise_tax_amount += tax.item_wise_tax_detail[key][1]
+		if frappe.flags.round_row_wise_tax:
+			item_wise_tax_amount = flt(item_wise_tax_amount, tax.precision("tax_amount"))
+			if tax.item_wise_tax_detail.get(key):
+				item_wise_tax_amount += flt(tax.item_wise_tax_detail[key][1], tax.precision("tax_amount"))
+			tax.item_wise_tax_detail[key] = [
+				tax_rate,
+				flt(item_wise_tax_amount, tax.precision("tax_amount")),
+			]
+		else:
+			if tax.item_wise_tax_detail.get(key):
+				item_wise_tax_amount += tax.item_wise_tax_detail[key][1]
 
-		tax.item_wise_tax_detail[key] = [tax_rate, flt(item_wise_tax_amount)]
+			tax.item_wise_tax_detail[key] = [tax_rate, flt(item_wise_tax_amount)]
 
 	def round_off_totals(self, tax):
 		if tax.account_head in frappe.flags.round_off_applicable_accounts:
diff --git a/erpnext/public/js/controllers/taxes_and_totals.js b/erpnext/public/js/controllers/taxes_and_totals.js
index 70b70c3d284..6b613ce9ece 100644
--- a/erpnext/public/js/controllers/taxes_and_totals.js
+++ b/erpnext/public/js/controllers/taxes_and_totals.js
@@ -193,7 +193,7 @@ erpnext.taxes_and_totals = class TaxesAndTotals extends erpnext.payments {
 		frappe.flags.round_off_applicable_accounts = [];
 
 		if (me.frm.doc.company) {
-			return frappe.call({
+			frappe.call({
 				"method": "erpnext.controllers.taxes_and_totals.get_round_off_applicable_accounts",
 				"args": {
 					"company": me.frm.doc.company,
@@ -206,6 +206,11 @@ erpnext.taxes_and_totals = class TaxesAndTotals extends erpnext.payments {
 				}
 			});
 		}
+
+		frappe.db.get_single_value("Accounts Settings", "round_row_wise_tax")
+			.then((round_row_wise_tax) => {
+				frappe.flags.round_row_wise_tax = round_row_wise_tax;
+			})
 	}
 
 	determine_exclusive_rate() {
@@ -346,6 +351,9 @@ erpnext.taxes_and_totals = class TaxesAndTotals extends erpnext.payments {
 			$.each(me.frm.doc["taxes"] || [], function(i, tax) {
 				// tax_amount represents the amount of tax for the current step
 				var current_tax_amount = me.get_current_tax_amount(item, tax, item_tax_map);
+				if (frappe.flags.round_row_wise_tax) {
+					current_tax_amount = flt(current_tax_amount, precision("tax_amount", tax));
+				}
 
 				// Adjust divisional loss to the last item
 				if (tax.charge_type == "Actual") {
@@ -480,8 +488,15 @@ erpnext.taxes_and_totals = class TaxesAndTotals extends erpnext.payments {
 		}
 
 		let item_wise_tax_amount = current_tax_amount * this.frm.doc.conversion_rate;
-		if (tax_detail && tax_detail[key])
-			item_wise_tax_amount += tax_detail[key][1];
+		if (frappe.flags.round_row_wise_tax) {
+			item_wise_tax_amount = flt(item_wise_tax_amount, precision("tax_amount", tax));
+			if (tax_detail && tax_detail[key]) {
+				item_wise_tax_amount += flt(tax_detail[key][1], precision("tax_amount", tax));
+			}
+		} else {
+			if (tax_detail && tax_detail[key])
+				item_wise_tax_amount += tax_detail[key][1];
+		}
 
 		tax_detail[key] = [tax_rate, flt(item_wise_tax_amount, precision("base_tax_amount", tax))];
 	}