Hello All,
I am facing a issue in VAT calculation in AX 2012 R3 India version, where the Items are sold on MRP.
The Scenario is that Item are sold on MRP, say Rs100, which includes Tax (10%). If I use the Item Tax group code which has Tax basis = Max. Retail Price and Price incl. Tax = Yes, the system calculates the Tax Amount correctly, but it adds to the line amount and gives the total value as 109.09 (Line Amount + VAT), where as it should have been 100 only item sold has MRP printed on them. On the alternative if I choose to use Item tax group that has Tax Basis as Line Amount, both VAT and Total amount are correct. But I cannot use this because, if there are any discounts, it is also factored for tax calculations. which is incorrect.
Kindly let me know if I missing any setup / configuration.
Thanks in advance…
Regards, Dinesh HC