This guide will help you in calculating billing value for raising invoices at the time of sending goods to eshopbox warehouse.
Billing value is calculated using below parameters :
MRP of product
GST rate for products
Billing margin - this is assumed as 50% for sake of simplification and reducing the tax liability on Brand arising at the time of sending goods to eshopbox warehouse
Step by step process to calculate billing value is :
Determine net sale value of products by reverse calculating tax on the product MRP.
Calculate billing margin as 50% of MRP
Billing price (excluding tax) = Net Sale Value - Billing margin amount
Add tax on unit price excluding tax to determine billing value including tax
Following table illustrates the method for billing value calculation for various categories :
Apparels :
Apparels |
Case1 |
Case 2 |
Case 3 |
||||
Description |
Value |
Description |
Value |
Description |
Value |
||
MRP |
A |
1,000.0 |
1,200.0 |
2,675.0 |
|||
GST |
5.00% |
47.6 |
12.00% |
128.6 |
12.00% |
286.6 |
|
Net sale value (excluding tax) |
B |
952.4 |
1,071.4 |
2,388.4 |
|||
Billing Margin |
C = 50%*A |
50% |
500.0 |
50% |
600.0 |
50% |
1,337.5 |
Unit Price excluding tax |
D = B - C |
45.24% |
452.4 |
39.29% |
471.4 |
39.29% |
1,050.9 |
GST* |
E |
5% |
21.5 |
5% |
22.4 |
12% |
112.6 |
Unit price (including tax) |
F = D + E |
47.39% |
473.9 |
41.16% |
493.9 |
43.49% |
1,163.5 |
Footwear :
Footwear |
MRP < 500 |
MRP > 500 |
|||
Description |
Value |
Description |
Value |
||
MRP |
A |
450.0 |
1,000.0 |
||
GST |
5.00% |
21.4 |
12.00% |
107.1 |
|
Net sale value (excluding tax) |
B |
428.6 |
892.9 |
||
Billing Margin |
C = 50%*A |
50% |
225.0 |
50% |
500.0 |
Unit Price excluding tax |
D = B - C |
45.24% |
203.6 |
39.29% |
392.9 |
GST* |
E |
5% |
9.7 |
12% |
42.1 |
Unit price (including tax) |
F = D + E |
47.39% |
213.3 |
43.49% |
434.9 |
Other categories : Bags, Artificial Jewellery
Other |
Artificial Jewellery |
Bags, wallets |
|||
Description |
Value |
Description |
Value |
||
MRP |
A |
450.0 |
1,000.0 |
||
GST |
5.00% |
21.4 |
12.00% |
107.1 |
|
Net sale value (excluding tax) |
B |
428.6 |
892.9 |
||
Billing Margin |
C = 50%*A |
50% |
225.0 |
50% |
500.0 |
Unit Price excluding tax |
D = B - C |
203.6 |
392.9 |
||
GST* |
E |
5% |
9.7 |
12% |
42.1 |
Unit price (including tax) |
F = D + E |
213.3 |
434.9 |
We will reiterate the billing value calculated doesn’t relate with amount payable by brand when the products are sold (settlement value). Settlement value depends on discount at which the products are sold, sales tax, channel fees and eshopbox fees.