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Former Member

Need help regarding VAT condition.

Hello Every one,

My client is manufacturing POY yarn by performing some mechanical process on a finished good DTY purchased from different vendors.

Vendor A from Gujrat is selling DTY as VAT Applicable material

Where as now they have a new Vendor B from Maharashtra selling the same material from their VAT exempted unit.

Now the issue is...

If POY sold to customer comes from Vendor A's DTY then VAT = Base price + Excise + Freight +Insurance ( Which is the current process

But if the POY sold to customer comes from Vendor B's DTY then VAT = ( Base price + Excise + Freight + Insurance ) - ( Weight average of the Input Material )

I am trying to insert a manual condition type in the pricing procedure ( for Weight average of the input material ) which shud be deducted from the present condition type JLST for VAT. Not sure if this is the correct way to achieve the desired result.

Thanks

Trupti

Edited by: Trupti Ravikant Deulkar on Oct 5, 2010 11:46 AM

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2 Answers

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    Former Member
    Oct 05, 2010 at 01:05 PM

    Hi,

    You have clearly articulated your scenario and you have given the solution yourself. Go ahead, this is the correct and the most optimal solution for your scenario.

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  • Oct 06, 2010 at 04:10 AM

    If you need to consider VAT exemption, then the straight solution is that you need to have a different tax classification for that material in sale order. Of course, you can have a manual condition type for weight.

    thanks

    G. Lakshmipathi

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    • Former Member

      Thanks,

      I have confirmed manual condition type from the client, and would go ahead with that.

      Points awarded as well.

      Thanks,

      Trupti