2. Creating Sales Invoice for VAT on MRP
Given below are few examples to show the calculation of VAT based on MRP (inclusive and non-inclusive of taxes).
VAT Rate 4%
MRP Inclusive of VAT
Consider the sale of Item 1, which attracts 4% VAT:
Item Name |
Item Vatable @ % |
MRP Incl. of Tax |
VAT % |
MRP |
QTY |
VAT On |
VAT Amount |
Item 1 |
4.0 |
Yes |
3.85 |
200 |
10 |
2000 |
76.92 |
Calculations:
1. As MRP is inclusive of Tax, the actual VAT% is calculated as (100*Rate of VAT)/ (100+Rate of VAT)
2. VAT amount = (VAT % * VAT On)/100.
3. VAT On = MRP * Qty |
