CODEWITHSUNDEEP
magentomagento-1.9
krvarun
krvarun

Reputation: 11

Magento applying tax twice

Magento 1.9.0.1 is calculating tax twice for products. I've set 2 tax zones for 3 tax types:

  1. India > Karnataka > 4% (called VAT)
  2. India > * > 4% (called CST)
  3. [none] -- For all countries except India

Problem appears when I select India > Karnataka and estimate price. Both CST (matching all states) and VAT (matching only Karnataka) get calculated and added up resulting in 8% e.g.,

product value 10$ VAT(4%) 0.4$ CST(4%) 0.4$ Grand total 10.8$

For both the tax rules, priority is 0 and "calculate tax on subtotal" is off

I think "India > Karnataka" shipping location is matching both the tax rules hence tax is getting doubled. Is there a way I can specify "All states except Karnataka" ?

PS: I'm using two different tax rates for * and karnataka as these rates may be different in future even if they are same as of now.

Upvotes: 0

Views: 1444

Answers (2)

krvarun
krvarun

Reputation: 11

Found a solution: There are 36 states (counting UTs as states) so its not practical to add all of them.

Under tax rules, instead of having two rules, I selected both CST and VAT tax rates in a single rule and it worked.

Upvotes: 0

Deepa Maheshwari
Deepa Maheshwari

Reputation: 11

To add cst and vat in 1 rule i.e. if you want that : 1. cst for all other states of india 2. vat for your origin state eg. Karnataka

Then do as told below:

  1. In Sales->Tax->Manage Tax Zones & Rates, add 2 taxes 1 with name : cst and 1 with name: vat. Select the state as * for CST and state as Karnataka for VAT. Set same priority for both the tax rates for eg. priority : 0.

  2. Then in Sales->Tax->Manage Tax Rules. Create a rule and select both CST and VAT in that rule and save the rule.

Magento will automatically apply any 1 of CST or VAT according to the state specified in the address (as per tax configuration setting for applying tax based on either of: shipping origin/shipping address/billing address)

click here to see image to set tax rule

Upvotes: 1

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