How is apparel tax calculated in India with discounts?

How is apparel tax calculated in India with discounts?

gncwearific
Visitor
2 0 0

Hi,

I am from India and the tax on apparel in India is calculated per item based on the price of each item. Any item sold for any price below 1000 will be taxed at 5% while any item sold at or above 1000 will be taxed at 12%.

Let's take an example: there are 3 items in my cart. The first has the sale price of Rs 800 while the second and the third have the sale price of Rs 1100 each. Also, let's say I have a discount coupon of 10% off for the third item. So, the total of my cart would be 800 + 1100 + 990 (1100-10%) = Rs 2890. The tax won't be calculated based on Rs 2890. Rather, it will be calculated as follows: the first item being sold at 800 (below 1000) would be taxed at 5%, the second item being sold at 1100 will be taxed at 12% and the third item (even though its sale price is 1100) being sold at 990 (below 1000) will again be charged at 5%.

The best way I found to charge the correct tax was manually set the items with sale prices higher than Rs 1000 at a 12% slab of tax. But even with this solution, I am facing issues as it doesn't take discounts and coupons into consideration.

I hope that I have made myself clear and that someone could help me out.

Regards

Anmol Garg

Reply 1 (1)

superadminleap
Visitor
2 0 0

Yes correct I am also facing this same issue. Do let me know. if you found any solution.