Education cessThis functionality is specific for India. Education cess is a tax levied on all types of tax amounts to create an income for the government to finance basic education in India. Although, you are formally required to report and pay education cess separately, to create a separate tax line for education cess, you must set up a multiple tax code. For example, if 12% service tax and 2% cess apply to a transaction, to show the cess separately, define the following multiple tax code lines in the Multiple Tax Code Lines (tcmcs0135s000) session:
Most tax offices accept tax reports in which education cess is added to another tax amount. This means that you do not need to set up separate tax codes for education cess. For example, if 12% service tax and 2% cess apply to a transaction, to include the cess in the tax code, define a tax code for the service tax for which set up a tax rate of 12% + (2 % of 12%) = 12,24 %.
| |||