Additional VAT - Not Calculating Properly in MRP Scenario

[former_member221515]

Hi Experts

We are in Gujarat where VAT and Additional VAT is applicable. We procured goods of Rs.150000 (basic price) from dealer. Excise Duty and VAT 4% and Additional VAT 1% is extra as applicable

We received goods and we did GRN with MRP indicator in MIGO.

Excise duty passed by dealer: Rs.12000 + Rs. 240 + Rs. 120 = Rs.12360

System correctly posted GR at Rs.150000 (since its basic). In Excise Duty Tab, we gave assessable value as Rs.100000 (on which excise duty was calculated and passed by dealer) and above ED was calculated correctly. Then we did J1IEX and it also got posted correctly with above mentioned excise amount.

In MIRO, we entered all the things. 4% VAT is properly calculated on Rs. 162360 [i.e. Basic Price Rs.150000 + ED (passed on by Dealer) Rs. 12360].

But Additional VAT is getting calculated on Rs. 168540 [i.e. Rs.150000 + ED ( 12.36% calculated on Rs.150000) Rs. 18540].

We do not know why system is calculating wrongly for Additional VAT only. Why its considering two separate base value for calculating VAT and Additional VAT.

We checked Tax Procedure and Tax Condition for VAT and Additional VAT. Only thing which is different is that we have mentioned 4% in FV11 for VAT condition and 1% in FV11 for Additional VAT. But base on which VAT and Additional VAT should calculate is same.

I tried maintaining "Classify Condition Type" for additional VAT also same as VAT. But in this case system started calculating correct additional VAT but VAT amount got wrong. So i removed classify condition type setting for Additional VAT.

Please let me know what could be the reason for different behaviour.

PLEASE NOTE: THIS ISSUE IS FOR MRP SCENARIO ONLY. WHEN WE PROCURE FROM MANUFACTURER, ALL THE THINGS ARE CORRECTLY POSTED IN SYSTEM.

[ajitkumar]

pl check note 926857

[Former Member]

Hello Deepak,

As stated by Nilesh Fursule, pls check the same.

Along with this, please check whether you are doing "tick mark" on "MRP indicator" ???

For this, base (assess. value)should be 150000.

Hope, this will help.

Regds,

Nilesh

[Former Member]

Hi Deepak,

Your understanding of the issue is correct. However you must ensure that proper tax code is designed using FTXT, conditions are maintained in FV11 and same conditions are placed correctly in tax procedure. The only sep you missing might be proper location of 1% VAT condition in tax procedure. You need to analyze which base is taken by 1% VAT condition, then remove this condition and place it below a condition and specify from - to for this 1% VAT condition. This should work for you for MRP scenario.

[JL23]

'What do you mean with MRP scenario?

The MRP run does not create POs, it creates planned orders or requisitions.

If there is something wrong then you should compare the conditions of a PO that works correctly with the conditions of a PO that does not work as expected

[former_member221515]

MRP scenario means purchase from Dealer. Here, dealer passes on excise credit which he received from manufacturer.

[Former Member]

Hi Deepak,

Could you please share the solution.

Regards,

Lakhya

[former_member187965]

Hi,

I also faced the same issue and the solution is as below,

Go to, SPRO - Logistics General - Tax on Goods Movements - India - Basic Settings - Determination of Excise Duty - Condition Based Excise Determination - Classify Condition Types

Here, maintain the additional VAT condition type (For Ex. ZVRD) as below,

Procedure   Condition Type        Condition Name

TAXINN             ZVRD          APLST A/P Local Sales Tax

Now, check the scenario again.