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Former Member

To apply Output tax and Service tax on the same vendor invoice.

I received a request from my Mumbai user to configure a new tax procedure / tax code to cater for the following scenario


Item: Antivirus Mcfee

Quantity: 15

Rate: 1,800.00

Subtotal: 27,000.00 INR

Output VAT 6% = 1,620.00 (based on 27,000.00 above)

Service tax 14% = 3,780.00 (based on 27,000.00 above, again)

Swachh Bharat Cess 0.05% = 135.00

Krishi Kalyan Cess 0.05% = 135.00

Grand Total = 32,670.00 INR (add up all amount above)


Is it valid to apply the output tax and service tax on the same amount twice (from India’s tax regulation perspective)? Shouldn’t the vendor invoice be split in to 2 line items (service charge and product amount and apply the different tax respectively?).

Currently I don’t think there is any tax code can cater for such scenario unless I create a new one specifically for this invoice which is not practical.

Can someone help to review and comment on this vendor invoice if it is valid?

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