[Solved] Sell against 'c' form having different items with different tax

Item A is VAT 12% and is defined in the Item Table
Item B is VAT 5% and is also defined in the Item Table.
Now the system works well if the seller is selling on VAT rate, that to customers within the state but the things become more complicated when the seller is selling items to customers out of state.

Now if the seller is selling items to customer out of state then you have 2 options:

Whether Sales is against C-Form
Whether Sales is without C-Form (this case is similar to the above case where the VAT rate is charged as tax)
But in case 1 the rate of C-Form tax is applied to all the items whether Item A or Item B.

Now how can that be implemented in the system

@jyotinb So I have this right in my head would these examples be right?

Example 1 (Sale within State)
Item A - Sell 1 @ 20 at VAT Rate 10%
Item B - Sell 1 @ 10 at VAT Rate 5%
Total before VAT - 20 +10 = 30
VAT - 20 * 0.1 + 10 * 0.05 = 2.50
Invoice Total - 30 + 2.50 = 32.50

Example 2 (Sale to Another State with no C-Form)
Treated the Same as Example 1

Example 3 (Sale to Another State with a valid C-Form with VAT Rate of 7% on all items)
Item A - Sell 1 @ 20 at VAT Rate 7%
Item B - Sell 1 @ 10 at VAT Rate 7%
Total before VAT - 20 +10 = 30
VAT - 20 * 0.07 + 10 * 0.07 = 2.10
Invoice Total - 30 + 2.10 = 32.10
So the difference is that the normal VAT rates do not apply but a special VAT rate applies to all items which in this example is 7%

Have I understood the processes correctly?


Yes exactly

@jyotinb That should be fairly easy to set up. All you have to bear in mind is that for an item tax to actually apply that item tax rate in the Sales Order/Invoice you have to have the tax master in that item the same as the tax master used in the Sales Order/Invoice. If they don’t match then the tax master in the transaction screen is applied. So you set up a specific tax master for whatever rate of tax applies on your Out of State sales and apply that in the Sales Order/Invoice and that rate will apply to all items on the Sales Order/Invoice irrespective of the rate set on any of the items.

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Thanks a lot