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Calculation Logic In taxes.

Hello,

I have a scenario, where in there is a logic in taxes and its based on mutual understanding between mu=y client and his vendor.

The logic is as follows;

Total amount-----------100

Tax exempted----------40

Taxable amount--------60

Tax rate-------------------14%

Now my client pays 14% on 30

Vendor pays 14% on remaining taxable amount 30.

Can we build in standard FTXP. Kindly suggest any inputs. It will be highly valued.

Regards,

Shyam.

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2 Answers

  • Best Answer
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    Former Member
    Apr 11, 2016 at 10:46 AM

    Hi,

    In this case you can maintain 7 % on taxable amount so system will calculate as per your requirement.

    Regards, Rakesh

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    Former Member
    Apr 11, 2016 at 11:17 AM

    Hi,

    For 60 % tax on goods amount where 40 % exempted - You can create Excise Duty Indicator 60% in SPRO and keep maintaining it in J1ID.

    For service tax on goods value on recoverable basis- you can follow target tax code concept. Refer

    Regards,

    Biju K

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