Calculating Taxes and Duties
In Microsoft Dynamics NAV, Countervailing Duty (CVD) is charged for goods that are either:
Manufactured in India
Imported to India
Listed under the Central Excise Tariff Act of India
A manufacturer who imports goods that are used for manufacturing other goods is eligible to obtain Central Value Added Tax (CENVAT) credit. This credit is equivalent to the Additional Duty of Customs (ADC) that is paid on imported goods. For more information, see Central Sales Tax Report. You must claim setoff to use the CENVAT credit. For more information, see Claim Setoff List Window.
Maximum Retail Price
Maximum Retail Price (MRP) is used to calculate the excise tax based on the maximum retail price minus the abatement percentage. The selling price of the goods to the customer, covered under the MRP provision of the Excise Act, can include all taxes.
The Central Excise Tariff Act defines the retail sale price as the maximum price at which the packaged excisable goods can be sold to the consumer. The maximum price includes the following:
Taxes
Freight and transport charges
Commission payable to dealers
Advertisement charges
Delivery charges
Packing charges
Forwarding charges
Miscellaneous charges
If a manufacturer determines that the selling price should include all taxes and charges, then the manufacturer must use backward calculation to calculate the excise tax and the VAT or Central Sales Tax (CST). The manufacturer must pay the excise tax and the VAT to the government. For more information, see, How to: Set Up Excise Tax for Maximum Retail Price, How to: Calculate Excise Tax for Maximum Retail Price Using Sales Documents, and How to: Set Up Price Inclusive of Tax.
See Also
Tasks
How to: Set Up Price Inclusive of Tax
How to: Set Up Countervailing Duty
How to: Set Up Excise Tax for Maximum Retail Price
How to: Calculate Excise Tax for Maximum Retail Price Using Sales Documents