Question

How to Implement Additional TAX on (Net Val + TAX)

  • 9 October 2020
  • 1 reply
  • 125 views
M
Rank
Badge +3

Hi,

Can we Implement the Below Mention Scenario in default IFS 10 System

we want to apply Tax on net Value and Tax 

for E.g :-

Net Value :- ______________________________ = 100000

GST Tax - 18% :- (100000 x 18%) ___________ = 18000

TCS - 0.075% :- (100000+18000 x 0.075%) = 80.5 (I want to apply this type of calculation)

Gross Value :- _____________________________ = 118088.5

 

can Sum one help me to find out how to implement the above scenario in the system

I have tray through Tax Code and Tax structure but I didn't get the right solution because the TCS Value Calculate on Net Value(Not including GST Tax Amount)

1 reply

A
Rank
Userlevel 7
Badge +16

Tax on tax calculation is not a normal scenario, at least from system perspective. 

You can work it around, I think, using different tax rate: instead of calculating 0.75% TCS on gross amount including VAT, you can calculate TCS 0.885% on net amount. 

0.885 = ((1.18 * 1.0075)  - 1.18) *100

Regards, Adam

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