Sales Tax

tazzy30

Hello all,

I have a UK company who would like to sell to India but i'm not sure how or what is the best way to account for the 3 sales taxs that apply (Service Tax, Education Cess of Service Tax and Higher Educ. Cess). Is this something that the Sales Tax module would cover?

ssingla

Yes, Sales Tax module in Indian Localized version covers all the localized taxes. It also includes Service Tax and related cess.

tazzy30

Thank you for your reply, does anyone know where i can find more info on this granule? (i.e. what it actually covers)

ssingla

There are lot of localization taxation requirement and MS Dynamics NAV satisfy around 60-70% of the same (which is normally more than any branded ERP's). If you can tell me something about your operations, I can suggest you the correct user manual (There are lot of them).

tazzy30

I have a UK company with an Indian subsidiary; there is a number of companies (UK, India, and America) setup in a UK database. It is the Indian company that we need to setup sales tax for.

Now according to Microsoft I would need to create a new database for the Indian company and acquire a Indian Licence to be able to use sales tax is this really the only way around it?

ssingla

I would also recommend that except if the taxation requirement of Indian subsidary is minimal.
IN Localization in NAV 2009 SP1 has the following new objects :
Tables : 182
Reports: 122
Codeunit: 22

This is apart from the modifications to numerous standard objects. Merging them in your UK database will be a huge task and moreover the taxation requirement in India changes on the fly. This will further complicate the situation. India is set to launch GST replacing Excise, Sales Tax,VAT & Other taxes on 1st April 2010. This will require major modification to the database.

tazzy30

Thank you ssingla for your advice, think we will set up a new database for the Indian company.

Do you know where I can find a manual to set up Indian sales tax as I have only come across American sales tax manuals?

ssingla

PM me your mail id. Also give a brief about your company operation so I can send only the relevant docs.