Tax on MRP

RudraKandpal

Hi All,

we have a requirement in which we have to calculate Tax on MRP,
For E.g

Item A has Rs50 as MRP and it's Unit Price is 35.
The requirement is to calculate Tax on MRP which is 50.
Tax Amount should be, let's say 50*5/100 =2.5 Rupees

Total bill would become

Unit Price 35
Tax Amount 2.5
Total Amount 37.5

For some State the tax is on MRP and for some state Tax is on Unit Price.
Is there any way we can achieve it?

I am using Nav 2009 R2 Indian version.

Regards

RudraKandpal

Any Indian Experts.. kindly give your opinion.....

chengalasettyvsrao

you can refer the 23880_Assessable Value Computation_Feature Instructions Guide.

RudraKandpal

Where can I find the Instruction guide???

ssingla

RudraKandpal wrote:

Hi All,

we have a requirement in which we have to calculate Tax on MRP,
For some State the tax is on MRP and for some state Tax is on Unit Price.
Is there any way we can achieve it?

I am using Nav 2009 R2 Indian version.

Can you specify which tax you want to calculate? The solution mentioned by chengalasettyvsrao works perfectly for Excise but if Sales Tax/VAT needs to be calculated on MRP then it will be a different situation.

chengalasettyvsrao

RudraKandpal wrote:

Where can I find the Instruction guide???

You can check the partner source for the NAV IN localization manuals.

RudraKandpal

Hi Mr. Sandeep,

I want to calculate Sales TAX(Local VAT) on MRP...
like if I sell the Item A in Delhi
Unit Price:= 80
MRP:=100
Sales Tax(VAT) :=100*5/100=5Rupees
Total := 80+5 =85

It depends statewise but for all Item.

Like in Rajasthan all the sales tax(VAT) not CST would be calculated on MRP.

Regards
Rudra

ssingla

There is no provision in Standard NAV which can give you VAT calculation on MRP. The concept of MRP on Item card is for calculation of Excise duty on assessable value. Your requirement is specific to an industry type and you need to customize the VAT calculation on MRP.

chengalasettyvsrao

RudraKandpal wrote:

Hi Mr. Sandeep,

I want to calculate Sales TAX(Local VAT) on MRP...
like if I sell the Item A in Delhi
Unit Price:= 80
MRP:=100
Sales Tax(VAT) :=100*5/100=5Rupees
Total := 80+5 =85

It depends statewise but for all Item.

Like in Rajasthan all the sales tax(VAT) not CST would be calculated on MRP.

I think you are talking about Price Inclusive Tax functionality.

Standard Navision works on basic price and then do the forward calculation and calculates the taxes.

Example : Item Price = 100
Tax 5 % = 5
Total Item Price = 105

Standard Navision works on price (unit price Inclusive tax) and then do the backward calculation and calculates the taxes.

Example : Price Inclusive tax = 200
Tax % = 5

On the value of 200 , the program will do the backward calculation like Unit price = 190 and Vat = 10 ( 5 %).

RudraKandpal

Hi chengalasettyvsrao,

I am not talking about Price Inclusive of tax, that i am aware of it.
In India specially in pharma sector Govt. want VAT on MRP not on selling price(unit price).
Like in Rajasthan Unit Price(Selling Price) woul remain Rs.80 but the VAT is on MRP which is Rs.100.
So bill would become
Selling Price 80
VAT 5%= 100*5/100=5
Total 80+5=85
Hope this provides little more information!!!!!!

Regards
Rudra

ssingla

You need to customize. There is no standard solution in IN localization.

chengalasettyvsrao

Never implemented this requirement. Being a India specific requirement it is not incorporated in standard NAV till now. When it comes to solution as SSingla suggested need to do customization . Standard NAV IN Localization there are some additional fields available in Purchase / Sales line level for to caluclate the taxes . Tax Base Amount is the field used to calucate the VAT or CST in Sales line level .You can create a new filed called TAX on MRP in Item Card and enter the MRP value . If this field has some value then system should consider this MRP value for tax caluclation in sales document level instead of the Standard Tax Base amount value.

Table 37 field no.13727.

You can think something like this.

RudraKandpal

Generally this kind of requirement is there on Pharma sector....

ssingla

RudraKandpal wrote:

Generally this kind of requirement is there on Pharma sector....

Thats the basic issue. The requirement is industry specific and is not constant across India and therefore MS IN never localized it. In case you feel it impacts lot of customer then you can make a localization feature request. If MS feels its important then they might incorporate the feature in NAV 7.