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Handling VAT Calculations for Unregistered Vendors in Indian Localisation

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Hi All,

This is pertaining to India Localisation.

I am facing an issue on how to handle VAT calculations for unregistered vendors in AX 2012. For an unregistered vendor, while posting an invoice,  the accounting entries including VAT calculations (considering VAT as 6%) should be

Stock a/c             Dr     1000

Tax Payable       Cr      60

Input Tax             Dr     60

Vendor              Cr      1000

 

The main difference with posting invoice for registered vendor is that the VAT payable is not loaded on the payable amount to the Vendor and is accounted differently in a separte account.  For registered vendor the above entries would be

 

Stock a/c             Dr     1000

Input Tax             Dr     60

Vendor              Cr      1060

It would be very helpful if anyone can guide us on how to achieve the desired results for unregistered vendors in AX 2012.

 

Regards

Ashok Roy


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