Concept of VAT
  Making ACE & X-ise VAT compliant
  Specific Changes
  VAT Reports and Returns
  VAT Help Document

     Concept of VAT

Concept of VAT is not new to Coral, having introduced MODVAT (& CENVAT) in X-ise way back in 1997.

  • VAT stands for Value added tax, meaning you pay tax only on the Value addition done, be you be a manufacturer, trader of goods or a service provider
  • Tax paid on inputs is adjusted against tax payable on outputs. That's purest form of VAT. Our desi VAT has many desi restrictions.
     Making ACE & X-ise VAT compliant

  • Various VAT credit restrictions have been incorporated VAT rules depending on the nature of purchases or sale

  • Hence, concept of transaction type has been introduced, which may be specified by the user in Purchase and Sales transactions

  • Transaction types are be created as a master

  • To deal with various rates of VAT, existing Billing terms can be used

  • To deal with products attracting different rates of VAT in a single invoice, product level billing terms have been enabled, like in X-ise
  • Concept of Common Inputs (Inputs against which both vatable and exempted goods are manufactured) have also been dealt with (on lines of Central Excise)

     Specific Changes

    Setup General Settings

  • Separate VAT details group with following :

  •     -  TIN No
        -  CST No
        -  SST No
        -  State (Pop-up for States & UTs)
        -  Legal Status
  • Sundry information

  •     -  Whether all consumptions are for manufacture of Vatable products
        -  Prompt Transaction Type in Purchase & Sales
  • Master - Debtors & Creditors

  •     -  TIN (so called registration VAT no.)
        -  State
  • Master - Products

  • Separate VAT details group with following :
        -  Vatable
        -  R. S. P
        -  RSP rate
        -  Assessable value formula
  • Master->VAT transaction type for Purchase/Sale

  • VAT Relations for Purchase/Sales

  •    (To intelligently detect Transaction type on the basis of Party, Product, etc.)
  • Entry - Production & Consumption

  •     -  Prompts whether the consumption for production of VATable goods or not
  • Entry - Purchase & Sales

  •     -  Prompts for Transaction type for each product row
        -  Prompts for tax (billing) terms for each product row
  • VAT Reports

  •     -  Generic VAT reports for Sales & Purchase provided
        -  VAT registers provided and State specific VAT returns are under study. Please wait for further announcements
     VAT Reports and Registers

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