which item need to tax

[Former Member]

hi,

in me23n line item conditions, there are 2 main value. net value(either base on standard or map item value) and effective value (also include of freight, duty)

1) may i know for both standard price and moving average price item, input tax during miro is based on net value(only stock or merchandise item value) or effective value(also include of freight, duty)?

2) most of the case, custom and freight forwarder different vendor from the stock vendor. when do miro for freight and custom, should include input tax?

3) basically i need to know whether standard price or moving average price item, input tax is based on

a) stock or merchandise item value only or

b) stock or merchandise item + duty + freight + etc.

thanks

[Former Member · Accepted solution]

1)Basically Tax is nothing to do with ,whether ur price is moving avg or standard.

2)In MIRO u can use tax code for frieght forwarder if he charges the service tax on frieght,else u can use zero tax code.

3)Again the tax are getting calculate in the PO itself and ae flowing to MIRO from there,but in some cases if taxes are tax code base then we can calculate them at the time of MIRO.

Tax is calculated on Base Value(Net value-discount if any) in some cases on frieght.

Hope this will clear ur doubts.

Regards,

Sujit

[Former Member · Accepted solution]

hi,

i need to know input tax is based on net value(only stock or merchandise item value) or effective value(also include of freight, duty)?

thanks

[Former Member · Accepted solution]

If by effective you mean (Net value - Discounts + Freight) then the answer is yes the taxes are applicble after discounts in some cases and in some cases taxes are applicable before discounts and freight charges.

It completely depends upon business scenarioas and location.

Regards

Sujoy

[Former Member]

Hi there,

Taxes on material/ Goods or services depends upon three things wher ther your vendor is taxable, material or service is taxable, and your material/ service availed is taxable or not..

So if the vendor from whom you are procuring the material or services is charging you some taxex you will have to pay that which will directly go to the govt for devlopment purpose.

The net amount of an Po line item less discounts offred by your vendor if any add freight if it also taxable.. Basically transportaion is one kind of service so service tax is applicable on it.

Hope it clears your doubts

Regards

Sujoy