[SOLVED] Two Taxes Rule - India

  • Posts: 83
  • Thank you received: 1
12 years 1 month ago #69523

Hi,

In India, there are two taxes, that is, VAT and Service Tax.

I need to have two taxes calculated and printed on my invoice.

Tax Calculation done is in this way:

Product Price (V) = 847.62
VAt @5% (W) = 5% of V = 42.38
X = V+W = 890.00
Service Tax @12.36% (Y) = 12.36% of (X) = 12.36% of (890.00) = 110.00
Maximum Retail Price of the product (Z) = X+Y = 1000.00

So in the product adding page, when I input 1000.00, all the said calculation should be done.

How this could be done?

Thanks & Regards,
Manjesh.

Last edit: 12 years 5 days ago by manjeshmohan.

Please Log in or Create an account to join the conversation.

  • Posts: 82818
  • Thank you received: 13361
  • MODERATOR
12 years 1 month ago #69695

Hi,

In your product you can just enter the price without VAT and select the "default tax category".

Then, you need to create two tax rates via the "manage tax rates" button of the System->Taxation menu for each one of your rate.
Note that both rates will be calculated on the price without VAT, so your second rate needs to be adjusted to take that into account. So instead of having 12.36% you should have a rate of 12.9775%

Then, you create two tax rules via the new button of the System>Taxation menu, one per rate, and you set the zone (India) and the tax category and you publish it.

Finally, when the user will enter his address on the checkout the taxes will be applied or not based on the address. If you want the taxes to be applied by default, you can change the "main tax zone" option of the configuration so that it is India and that the taxes are even applied before the user enter his address.

The following user(s) said Thank You: manjeshmohan

Please Log in or Create an account to join the conversation.

  • Posts: 83
  • Thank you received: 1
12 years 1 month ago #69700

Hi,

Thanks for the reply.

I've attached few screenshots of the pages for creating the tax rules and tax rates.

Please check the same and let me know whether I've done this correct or not as still I've some confusion.

Also please find the attached Accounting Voucher.jpg file; I need to print the amount figures in this format like,
Product - Rs.W
VAT 5% - Rs.X
Service tax 12.36% - Rs.Y
Total - Rs.Z

Presently I'm getting the invoice in the format which I've attached here; Invoice.pdf file.

Thanks & Regards,
Manjesh.

Attachments:

Please Log in or Create an account to join the conversation.

  • Posts: 83
  • Thank you received: 1
12 years 1 month ago #69806

When I tried to create the Service Tax Rate of 12.9775, as you've said, it has been rounded to 12.978 automatically.

How to overcome this?

Please Log in or Create an account to join the conversation.

  • Posts: 83
  • Thank you received: 1
12 years 1 month ago #69813

Hi,

I got the Tax calculation as I wanted. :) Thanks to your post and the documentations.

Please find the attached invoice pdf file.

Now the only problem left is that in the unit price, price and in the sub total, i need to show the price without tax rather than showing the price with tax as of now.

How could i do so?

Thanks & Regards,
Manjesh.

Attachments:

Please Log in or Create an account to join the conversation.

  • Posts: 82818
  • Thank you received: 13361
  • MODERATOR
12 years 1 month ago #69880

Hi,

You can change the option "show taxed price" of the Display tab of the configuration for that.

The following user(s) said Thank You: manjeshmohan

Please Log in or Create an account to join the conversation.

  • Posts: 83
  • Thank you received: 1
12 years 4 weeks ago #70524

Hi Nicolas,

Tax rules plus the invoice/order contents related problems are all solved and working perfectly. :woohoo: :)

Thanks for your great and quick support. :cheer:

Warm Regards,
Manjesh.

Please Log in or Create an account to join the conversation.

Time to create page: 0.067 seconds
Powered by Kunena Forum