Overview of Purchase Tax

Purchase tax is the tax levied by the state government on the purchase of goods. The buyer pays the tax for the goods that are procured from the dealer. The dealer remits the collected tax to the tax authorities.

Purchase tax is applied to a wide range of goods. A voucher is created and includes the details about the goods sold, as well as the price and tax. The vouchers are posted for the tax calculation.

To claim a purchase tax exemption, vouchers are attached with concession forms. The forms show the voucher details for claiming the tax exemption. The landed cost component enables the calculation of the purchase tax for the voucher. The purchase tax is updated when the appropriate landed cost rule is associated with the voucher.