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Former Member

Amortisation Cost to be used for Tax Calculation while MIRO but should not be paid to Vendor

Jul 14, 2017 at 07:48 AM | 105 Views

India GST Scenario:

Scenario Elaborated as below

1. The Material is purchased at base of 60000 INR

2. Vendor provides the Invoice for the Assessable value of 70000 ( Base price 60000 + 10000 Amortisation Cost) ; Here Vendor calculates the Tax of 28 % GST on Assessable value which is 70000.

3. So while posting in MIRO we would like to post in such a way that Taxes of 28% should get calculated on Assesseble value (70000) which includes both the Base Price + Amortisation cost but the Vendor should be paid only for Base Price + Taxes Calculated on Assessble value

Means,

60000 - Base Price

10000 - Amortisation cost

So Assesseble became 70000

Taxes of 28% GST on Assessable value = 19600

Vendor Payment Should be made for Base Price + Tax Calculated on Assessable

(60000 + 19600) = 79600

Thanks to Assist.

Goods and Services Tax (GST India)
MM (Materials Management) | FIN (Finance) | SAP Financial Supply Chain Management
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1 Answer

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    raghavendra sai
    Aug 16, 2017 at 01:52 PM

    Hi,

    Try change your TAXINN to add the Amortization cost to the base and calculate the Tax and remove the amortization cost leaving behind the increased tax for MIRO .

    Regards

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