Hi Guys,
I am using NAV 2009 RTC ( SP1), we have one pecuilar scenario related to sub contractor.
The entire scenario is as follows:- Our client send material to contractor for some processing work.
In that process contractor use his own material in order to complete work.
Contractor raise his invoice with VAT + Service tax. In this case VAT is being calculated on the 75% of line amount.
And service tax is being calculated on the basis of ( Base amount + VAT calculated on 75% of amount)
e.g. If Line Amount ( Rs.) = 100
VAT @ 5% ( Rs. 75 ) = 3.75
Service Tax @10.3 ( 100 + 3.75) = 10.69
Total = 114.44
Please guide me how to handle this type of transactions.
As per VAT rule contractor can charge VAT on 75% of amount.
If anyone have solution then please let me know ASAP.
rgds
dhananjay