<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/tf/onlinemanual/000402" xml:lang="en">
   <Header>
      <Title>Processing Input Tax adjustment</Title>
   </Header>
   <AimSection>
      <Paragraph>To process the input tax adjustment:</Paragraph>
      <ProcedureList>
         <ListItem>Calculate IRR (same as in Partial exemption requirement). While
		  calculating the IRR percentage, the following conditions must be checked and
		  the data must be updated accordingly: <List>
               <ListItem>Scenario A: If only taxable supplies exist in the given
				year, the IRR percentage is set as 100%.</ListItem>
               <ListItem>Scenario B: In case only Exempted supplies exist, Input Tax
				credit is not allowed on Tax for capital purchases. In this case the IRR
				percentage is set to 0%.</ListItem>
               <ListItem>Scenario C: In case both Exempted supplies and taxable
				supplies exist for the customer (Mixed supplies), calculate the IRR percentage
				same as in Partial exemption requirement.</ListItem>
            </List>
         </ListItem>
         <ListItem>After calculating the IRR percentage, the tax amount for the
		  Assets that you capitalized in the given year must be adjusted.</ListItem>
      </ProcedureList>
      <Paragraph>You can execute this process only if the <GUIRef href="/baanerp/tf/gld/tfgld9120m00c#tfgld920.gsti" role="manual">GST Implemented</GUIRef> check box is selected in the <GUIRef href="/baanerp/tf/gld/tfgld9120m00c" role="session">GST Parameters (tfgld9120m00c)</GUIRef> session.</Paragraph>
   </AimSection>
</ManualTopic>