The tax gets calculated at the applicable slab rate defined in the stock item. If the slab rates cannot be applied for a particular price, the value entered as Rate (Incl. of Tax) appears as the Rate in the invoice. You need to change the manually enter the Rate per unit and tax values.
Consider the example of apparel costing Rs. 1,100 inclusive of tax, with the slab rates mentioned below:
|
Slab Rate |
Integrated Tax |
|
0-1,000 |
5% |
|
Above 1,000 |
18% |
To create a slab rate for stock item
1. Go to Gateway of Tally > Inventory Info. > Stock Item > Create / Alter .
2. Set the slab rate with tax rates.
To record a sales invoice
1. Go to Gateway of Tally > Accounting Vouchers > F8: Sales .
2. Click F12: Configure and set the option Allow entry of rate inclusive of tax for stock item? to Yes .
3. Select the stock item, enter the Rate (Incl. of Tax) . When the slab rate cannot be applied on the Rate (Incl. of Tax) , the same amount appears as Rate and tax will be calculated on this Rate .
Tax calculation at 5% and 18% are given below to show that the higher or lower slabs cannot be applied.
● Tax calculation at 5% = 1,100*(5/105) = 52.38
The stock item rate without tax comes to = 1,100 - 52.38 = 1,047.62 . This amount is higher than 1,000, hence does not fall in the slab rate 0-1000 .
● Tax calculation at 18 % = 1,100*(18/118) = 167.79
The stock item rate without tax comes to = 1,100 - 167.79 = 932.21 . This amount is lower than 1,000, hence does not fall in the slab rate Greater than 1000 .
In such cases, you can manually enter the required rate and record the transaction.
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