ED calculation for Dealers

Hi,

how can I calculate the dealers ED and Additional Duty on their Basic value . what are the steps to account in ERP / How to create the tax structure.

If any standard steps for calculate tax part ( ED, Additional Duty, VAT etc ) in ERP .

And how can I calculate the TDS in purchase entry.

thanks,

Hello,

Can you please elaborate on ED?

ERPNext has very flexible Chart of Accounts master which allows you to set it up as per your requirement.

Chart of Accounts: https://www.youtube.com/watch?v=AcfMCT7wLLo

Taxes: https://www.youtube.com/watch?v=a8Eh4zLIrkU

TDS calculation is not automated for now.

E D elaboration - Excise Duty

thanks for your reply.

ERPNext doesn’t have a dedicated module for excise duty calculation. Following is how you can configure it in your ERPNext account.

  1. Create tax account for excise duty in your ERPNext account.
  2. Use it in the transactions using Sales/Purchase Taxes Charges feature.
  3. The standard reports of ERPNext (like Sales/Purchase Register) will give you data required for filling taxation. It will not be in the format as specified by the govt. Hence, you can export the data, and make report outside ERPNext.
  4. For the excise Print Format, you can insert Custom Fields in the Delivery Note print format. Also, you can create a Custom Print Format using Print Format Builder feature in ERPNext.

Hope this helps.

Thanks for your reply,

But we have standard format for enter the Excise Duty & Vat calculation on Basic value in case of supplier is a Manufacturer.
( Excise duty on basic value of the Item/Material )

In case of our supplier is a dealer it is difficult to calculate the Excise duty on Basic value of Item/material because supplier basic value is different and Excise duty he should give me on original purchase value.

First case Mfgr purchase value of Rs 10000.00 ( Purchase Receipt Note done for Rs.10000)
basic Excise duty 12.5% Rs. 1250.00
total Rs. 11250.00
Vat 5.5% Rs. 618.75
Total Bill Value Rs. 11868.75

Second Case : Supplier is a Dealer

Basic Item/Material value is Rs. 19760.00 ( It Includes Excise Duty and Additional Duty ) Purchase receipt Note done for Rs. 19760/- ( Supplier giving Excise duty on Rs. 7459.45 @ 12.5% = 932.43 and additional Duty on
Rs.8391.88 @ 4% = 335.67 ) ( Additional duty = Basic value + Excise duty x 4% )
vat 5.5% on value is Rs. 1086.80
Total Bill value is Rs. 20846.80

Kindly suggest for how to Calculate the Excise duty in second case.

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We also have the same requirement when the supplier is a dealer