Indian tax structure in invoices for excisable goods

Product value: INR 1000.00
Excise Duty @ 12%: INR 120.00
Edu. Cess @ 2%: INR 2.4.00
Hr. Cess @ 1%: INR 1.2.00
—————-
Total after 12.36% Excise 1123.60
VAT @ 5%: INR 56.18 (Calculated on 1123.60 and not on product value 1000.00)
—————-
Invoice Total: INR 1179.78
—————-

To fix this problem you have to install module ‘ account_tax_fix’ from OpenERP India branch, http://bazaar.launchpad.net/~openerp-india/openerp-india/trunk/files to get this branch you can visit to https://code.launchpad.net/~openerp-india/openerp-india/trunk

Once you will install this module, tax will be computed as below.

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