Using US Sales Tax in India

Business Central/NAV User Forum
1

My company is currently implementing Dynamics NAV 4.00 in our subsidiary in Mumbai.

We have been using most of the local Indian changes done in the India version of NAV 4.00. I must say that we are not very impressed by this locallization. Not only is there basically at least one hotfix to the module from Microsoft per week, but it’s also code in a way I would say is very far from Microsoft’s own recommendations on how to make good code in NAV. Maybe it’s because the localization was done before Microsoft aquired the company! I don’t know. And I really don’t want to offend anyone, if the developers are also reading this. It’s just a fact, that they have used a lot changes, you would never ever see in a release coming from Vedbæk in Denmark.

But we are now looking into upgrading to version 5.00. And as you might know, then this version is not released in India. So we are now considering what to do. The way our company is using the product to day is not very advanced, and maybe they are really only using 30-40% of the things the module can do.

So our consultant suggested that we instead would be using the US Sales Tax module, as this would be able to solve 90% of the functionality required, and it would be much cleaner for our Core solution, as we do already plan to use the US Sales Tax module for other countries.

Have anyone tried this? Does anyone here work for a company where you have used the Sales Tax module instead of the local Indian version for you subsidiaries in India?

2

Hi

I should say that it is very interesting and also innovative.

But my feeling is pessimistic on this. Only reason is that Indian tax structure is too complex.

That is the reason the localization is made with this mess.

Regards

Sekar

3

Dear Sekar,

I’m aware especially the Indian Localizations are very complex and that this is because the Indian tax structure is complex.

But as for most country localization packs, then it’s important always to keep in mind that the full localization pack was created to support all Indian companies, no matter where in India they are located, but also no matter what kind of business they are working in.

Someone told me that India has a total of 7 different types of sales/purchase taxation, but also that different rules exists based on where in India the company is located. That some provinces/states was using Indian Sales Tax, and some VAT etc. Our local office is currently using 3 different types of tax, so we really don’t need the full pack.

The advantages of the US Sales Tax module, is that it’s very flexible, and that you more or less can set it up to almost everything. You can even calculate VAT with this module, if you don’t want to use the standard VAT module.