Tax Engine Taxes

The Tax Engine Web Service is capable to handle various indirect and direct taxes. You can find the types of taxes that are available for use in the Tax Engine Web Service.

For the types of taxes listed and described in the table, we will use Indian taxes as a point of description. Some of these taxes (for example, VAT) may also be applicable to other countries that also use the same type of tax, therefore, the Tax Engine Web Service may also be used for these countries. These taxes can also be viewed in the Tax Engine Master Data > Tax Types by Country.

Tax type	Description
Basic Excise Duty	Basic Excise Duty is a duty charged on all excisable goods which are produced or manufactured in India.
VAT	VAT is levied on sale of goods and services. In India, different states have different VAT rules and implementation guidelines.
Central Sales Tax	CST is a tax levied on Sales, which are effected in the course of Inter-State trade of commerce. Tax percentage is determined by the combination of locations of the state of the Warehouse and the state of the delivery address of the customer. Tax is calculated at transaction's item line, as multiple taxes may apply for a single invoice, based on the origin of the items sold.
Service Tax	These duties are applicable on Services: Service Tax Education cess on Service Tax Secondary and Higher Education cess on Service Tax Service Tax on Transportation Education cess on Service Tax on Transportation Secondary and Higher Education cess on Service Tax on Transportation
Local Body Tax	These taxes are applicable in certain municipalities within the Maharashtra state, when buying goods from outside a local area, for sale, consumption, or use within that local area. A variable rate is added to the invoice, payable to the government by the customer.
Basic Customs Duty	The rate of duty depends upon the classification of goods. The calculation basis is based on assessable value.
Countervailing Duty	CVD is equal to central excise duty and is levied on imported articles produced in India.

Tax registration and tax declaration in India are governed by the Central and State Governments, depending on the type of tax. The Central Government levies taxes on income, customs duties, central excise, and service tax. Value Added Tax (VAT), stamp duty, state excise, land revenue, and profession tax are levied by the State Governments. It is a legal requirement in India that an invoice must be supplied at time of goods dispatch and accompany the goods while in transit, with all relevant taxes identified on the invoice.

Tax registration such as Tax Codes, Tax Rates, Tax Groups, Reserved Words, Formula Calculations, and so on should be maintained in the Tax Engine Master Data sessions to perform tax calculations in the Tax Engine Web Service. See Setting up the Tax Engine Master Data for details on how to set up Tax Data.