Tax Commodity

Tax Commodity

The VAT Commodity Master in TruePOS allows you to categorise goods based on the tax percentages defined by the government. This ensures compliance with tax regulations and accurate tax application during transactions. Below are the detailed steps to create a VAT Commodity.


Menu Access:  

  1. Click on Master > Tax.

  2. In the sub-menu, select VAT Commodity.

 

 

Tax Rates Under VAT:  

The tax rates for goods under VAT are categorized as follows:

  • Schedule I & Part A: Tax @ 1%

    • Examples: Gold, Silver, Pearls, Platinum, Diamonds, Emeralds, Rubies, and Worn-out Jewellery.

  • Schedule II: Tax @ 4%

  • Schedule III: Tax as shown against each entry.

  • Schedule IV: Nil tax.

  • Other Goods: Tax @ 12.5%

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Fields in the VAT Commodity Screen:  

  1. VAT Area Name:

    • Specify the area where the commodity is applicable or mapped.

  1. Commodity Code:

    • Provide an alphanumeric code to identify the product (e.g., 01021002).

  1. Commodity Description:

    • Briefly describe the product (e.g., Gold).

  1. Schedule:

    • Select or map the product's schedule type (I, II, III, or IV).

  1. Commodity Part:

    • Enter or map the part of the commodity with respect to the product schedule.

  1. Tax:

    • Define the applicable tax percentage for the product.

  1. Status:

    • Set the status. The default is Active.

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Steps to Create a VAT Commodity:  

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1.Access VAT Commodity Screen:

    • Navigate to Master > Tax > VAT Commodity.

 

 

  1. Fill in Commodity Details:

    • Enter the VAT Area Name.

    • Specify the Commodity Code.

    • Provide the Commodity Description.

    • Map the Schedule type (I, II, III, or IV).

    • Enter the Commodity Part.

    • Define the corresponding Tax percentage.

 

  1. Set the Status:

    • Ensure the status is set to Active (default).

  1. Save the Commodity:

    • Click Save to finalize the entry.

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Frequently Asked Questions (FAQs):  

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1. What is the purpose of creating a VAT Commodity?

  • To categorize goods based on government-defined tax schedules and ensure accurate tax application during transactions.

2. Can I create VAT Commodities for multiple areas?

  • Yes, you can create VAT Commodities and map them to specific VAT Areas.

3. What should I do if the tax percentage for a product changes?

  • Edit the commodity entry, update the Tax field, and save the changes.

4. How do I map a product to a specific schedule?

  • Select the appropriate Schedule type (I, II, III, or IV) while creating or editing the VAT Commodity.

5. What is the significance of the Commodity Code?

  • The Commodity Code uniquely identifies a product and helps in easy retrieval and compliance with tax regulations.

6. Can I deactivate a VAT Commodity temporarily?

  • Yes, change the Status to Inactive to deactivate the VAT Commodity temporarily.

7. Where can I view all created VAT Commodities?

  • Access the VAT Commodity screen under Master > Tax > VAT Commodity to view or edit all entries.

 

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