Pharamaceutical Wholesale Distribution System
dsCode Compatible

Preparing the System for
Tax-Wise Sales and Purchase Statements

Backgrounder on Tax Types

To identify the tax status of any item we need to inform the system about three details…

  • The Location of the Vendor (Purchase Party)
  • The Location of the Customer
  • Type of Item
For eg.
(This example is only for illustration. Please contact your tax consultant for a complete understanding on the taxation issues).
  • Vender X is a registered dealer located with in the state.
  • Vender Y is located out of state.
  • An item “A” is covered in the tax slab of 5%

In the current VAT era...

All items are to be treated as taxable. All VAT collected by your seller (from whom you purchase) will be treated as input VAT credit.
  • If your tax payble is more than the input credit then you will be expected to pay tax above the that amount.
  • If your tax payable amount is less than the input credit, the in balance input credit will be carried forward for the next period.
In Chhattisgarh, medicines have been kept out of the perview of this tax system. Here the dealers of medicines have the option of charging Tax on MRP at the first point of sale in the state.

Note: This system of Tax on MRP was declared invalid by the Supreme Court of India.

In the pre-VAT era...

if the “A” is purchased from “X”, the tax for the item would already have been paid i.e. the item A is considered Tax-Paid. But if the same item “A” is purchased from “Y”, the applicable tax has to be paid ie. the item A is Taxable.

Again, the tax status would be still different if the items are sold to a out-of-state customer.

Thokdawai allows you...

  • To define all the possible tax combination.
  • To generate the sale values for all the different type of tax situations.

Thokdawai also allows you to maintain transaction wise taxable status of any item. You can buy the same item from an out-of-state vendor in one transaction and from an in-state vendor in the other. The system can give you tax-wise status of each transaction.

For e.g.

  • Taxable Sale
  • Tax-Paid Sale
  • Government Sale (Form D)
  • Out-Of-State Sale against In-State Purchase
  • Out-Of-State Sale against Out-Of-State Purchase
  • Sale against Form F Transfer (Consignment)

The system also gives a statement by which you can have a comparison of the actual VAT applicable and the VAT recovered against each and every sale bill.

How do defne and mark tax types?

This Online User Guide describes the general features of the software. Due to high level of cusomtization services offered by us, the features described herein may not match with your specific customization. All names and figures visible in the images and text are only to demonstrate the features of the program. They do not represent real-life transactions.
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