Common rules of calculation process of tax inclusive and exclusive are as follows;
When Tax is Exclusive:
Tax Amount = Rate*Tax %
When Tax is Inclusive:
1. Tax @ 1%=Rate*100/101
e.g. Rate=Rs.200, Tax Inclusive=1%
Taxable amount=200*100/101=198.01
And Tax = 200-198.01=1.99
2. Tax @ 4%=Rate*100/104
e.g. Rate=Rs.200, Tax inclusive=4%
Taxable amount=200*100/104=192.30
And Tax = 200-192.30=7.70
3. Tax @ 12.5%=Rate*100/112.5
e.g. Rate=Rs.200, Tax inclusive=12.5%
Taxable amount=2200*100/112.5=177.77
And Tax = 200-177.77=22.23
In order to charge tax after discount/charge added in purchase/sale entry, please check the links given below;
- Is it possible to calculate discount and charge on sale rate and calculate tax on the amount after charge added to the sale rate?
- How to give Item discount on purchase bill before adding the tax?
- Is it possible to enter other discount detail in percentage for purchase bill which will be calculated before tax?
- Is it possible to enter other charges detail in percentage for purchase bill which will be calculated before tax?
In order to charge tax before discount/charge added in purchase/sale entry, please check the link given below;
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In order to maintain separate charge and discount ledger in purchase/sale entry, please check the link given below;
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In order to see item discount and item charge in sale register voucher view, please check the link given below;