tax question Ax 2009

Hi Friends,

Im new in Tax, I have doubts on Tax. we have sales tax, withholding tax nd Tax for Indian location in Ax 2009

what is the difference between all this tax.

1- when we use sales Tax??

2- when we use withholding Tax?

3- when we use TDS?

4- when we use VAT ?

How system will calculate , pls share your knowledge

Thanks

Hi Ravi,

These are basic questions of finance and not something concerned to AX only. I will suggest you to go through the required books to get proper clarity.

I will summarize your questions but you need to gather the information in detail as taxation is really complex when it comes to indian localization.

Sales tax - Applied in sales or purchase of tangible goods. Sales tax is further classified into central sales tax and local sales tax(VAT).

Withholding tax - These are direct taxes like TDS, TCS. A simple example income tax. It is deducted when any vendor is having income from company which is txable.

TDS - Tax deducted at source… as explained above.

VAT - Local sales tax on tangible goods. Tax % vary from state to state.

This are just basic information and not at all sufficient for knowledge.

Pranav…