web
You’re offline. This is a read only version of the page.
close
Skip to main content

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Tax configuration in A...
Microsoft Dynamics AX (Archived)

Tax configuration in Ax 2012-

(0) ShareShare
ReportReport
Posted on by Biju Thomas 155

In india we have VAT and CST for the same item (if we purchase from two vendors who is in home state and outside the state )  the taxes are different. I have gone through various documents and understood that  1) I have to configure SALES TAX GROUP and attach  SALES TAX CODES 2) configure ITEM SALES TAX GROUP and attach to SALES TAX CODES. 3) Map  SALES TAX GROUP against each vendor/customer 4) Map ITEM SALES TAX GROUP to items in the item master.

But I am not able to understand that what are the  different SALES TAX GROUP, ITEM SALES TAX GROUP, SALES TAX CODE ..etc I have to create. Most of the example I got is an US scenario. Can any one please help me in showing an INDIAN scenario.

Pls enlighten me in the following

1. After installing Ax2012R2 , whether I have to install any patches to activate INDIA localization

2. What/which all masters (menu option) Do I update

3. What are the  different SALES TAX GROUP, ITEM SALES TAX GROUP, SALES TAX CODE ..etc I have to create

4. How  CST will be addressed in  Ax2012R2. Is it state wise ?

5. How is Service tax and other charges is configured  Ax2012R2

Thanks in Advance

*This post is locked for comments

I have the same question (0)
  • kehlet Profile Picture
    kehlet 462 on at

    You are actually close to the US sales tax scenario, as it is done very much like that here.  It could get a little more complex, if you have a vendor that is in your home state, but ships from another state, but generally India and US follow the same rules overall (we have an office in Hyderabad, Andhra Pradesh in addition to 2 locations here in the US).

    What you need to do is setup the sales tax codes, let's make it simple and call them VAT and CST.  Set values etc. appropriately.

    Now, create an item sales tax group, you can call it ALL, and assign both sales tax codes to it.  This is the "master" list so to speak.

    Finally, you need 2 sales tax groups, one for VAT and one for CST and you assign those to your vendors.

    The way AX works is that it looks at the sales tax groups, what codes are include (e.g., let us say you chose the vendor with CST), then it looks at the item sales tax group (ALL) and checks to see what sales tax codes are a match between the 2.

    So for the vendor with CST, it only calculates CST, for the VAT vendor it only calculates VAT, but the key thing is to have both sales tax codes in the item sales tax group, and only the necessary codes in the various sales tax groups for your vendors.

  • Biju Thomas Profile Picture
    Biju Thomas 155 on at

    Thank you for your immediate reply. What you mean by location? is it warehouse?

    If I have two locations(warehouses) one is in home state and another is in a different state. suppose the vendor is in home state. Now this supplier is supplying an item for both locations. For first  line VAT has to be calculated  and for the other  CST has to be calculated.

    How do we configure this scenario?

  • pratik varia Profile Picture
    pratik varia 50 on at

    Hi Biju,

    Have you got answer for this as even i am facing same situation

  • pratik varia Profile Picture
    pratik varia 50 on at

    Hi Jesper,

    request an answer for below mentioned situation.

  • Biju Thomas Profile Picture
    Biju Thomas 155 on at

    Hi Pratik,

    Hope you are using Ax2012 R3. As  far as I know there is no standard option to calculate VAT or CST automatically based on the Location of the vendor and the warehouse.  Currently if it is required you have to customize this. You have to attach both VAT,CST tax codes to vendor master using a custom field and while creating the PO, you have to update the relevant tax code VAT or CST based on the  Vendor state and the deliveryLocation State. You may also customise for TaxType column if you require C-FORM to be by default.

    I already logged this to MSFT  and they promised to consider in future release.  To speedup the process, You may please login to following link and Vote for it.  https://connect.microsoft.com/dynamicssuggestions/feedback/details/808586/dynamics-ax-2012-sales-tax-vat-cst-for-india

    Regards 

    BijuThomas

  • pratik varia Profile Picture
    pratik varia 50 on at

    Hi Biju,

    Thanks for prompt reply, Yes I am using AX 2012 R3.

    Is there any workaround to handle this case wherein we have a vendor located at our home state, but we have delivery in multiple different warehouse located in different states, as client is not ready for customization at this point of time stating that this might be a standard functionality of AX as it is used by lots of Retail firms who would be working on same situation.

    Regards,

    Pratik

  • Biju Thomas Profile Picture
    Biju Thomas 155 on at

    Pratik,

    As MSFT team member(refer  the above link), has commented it will be considered in future release, I doubt whether there is a standard option available.

    In my opinion, the possible options without customisation will be,

    1) Define Two vendor codes for VAT , CST separately and use the vendor in the PO as required.

    2) Manually select the Tax Group (VAT or CST) In each PO .

    Regards

    BijuThomas

  • Community Member Profile Picture
    Community Member on at

    HI,

    Thank you.. for sharing the link i have tried to go through that link but i am unable to go

  • Biju Thomas Profile Picture
    Biju Thomas 155 on at

    You may please login to MS connect. Then search for suggestions titled 

    Dynamics Ax 2012 Sales Tax (VAT/CST) for  INDIA . ID 808586. Comment is give as follows:

    Posted by Sara [MSFT] on 2/14/2014 at 1:17 PM
    Thank you for your suggestion. We will consider this functionality for a future release. 

    Best regards.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Introducing the 2026 Season 1 community Super Users

Congratulations to our 2026 Super Stars!

Meet the Microsoft Dynamics 365 Contact Center Champions

We are thrilled to have these Champions in our Community!

Congratulations to the April Top 10 Community Leaders

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics AX (Archived)

#1
CP04-islander Profile Picture

CP04-islander 21

#2
Jagadabi Profile Picture

Jagadabi 6

#2
ZvikaR Profile Picture

ZvikaR 6

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans