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Works Contract

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Posted on by Community Member Microsoft Employee

Hi Experts,

I need to configure the works contract tax (Indian Localisation).

See the example:

Amount on which tax to be computed: 100,000

VATable portion is 40% on 100,000 = 40,000

Service Tax portion is 75% on 100,000 = 75,000

VAT Rate = 12.50%

Service Tax= 12.36%

VAT= 5000

Service Tax= 9270

Total Amount= 100,000+5,000+9,270= 114,270

How can I create Structure as well as Tax details for this?

Thanks in advance,

-Harsh.

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Community Member Microsoft Employee on at

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RE: Works Contract

Hi Harsh,

Try following steps:

Create another structure Works Contract Taxwith

Service Tax

Sales Tax

Create Tax group Code "Work Contract"

Navigate and assign Tax rates as per your requirement. (in your example: 40% of 12.50%)

Under Service Tax Group, give necessary tax rates with abatement. (12.36% with abatement :25% in your example)

During invoice selection select the above Structure.

I think this might help you.

-JO

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