To set up Octroi and Entry tax

This functionality is specific for India.

For transactions to which Octroi tax or Entry tax also applies, you must set up a multiple tax code for sales tax or VAT.

Model the Octroi tax or Entry tax as one line of the multiple tax code.

You must first define tax code lines for the types of tax that must be included, because Octroi tax or Entry tax must be calculated over the invoice amount including the CST, VAT, or LST amount .

In the Multiple Tax Code Lines (tcmcs0535m000) session, enter the following details:

  • Description
    Mention the city or state. For example, enter 'Octroi - Delhi'. This helps the users to select the correct tax code line for a transaction.
  • Calculation Method
    Select Cumulative, because Octroi tax or Entry tax must be calculated over the invoice amount including the CST, VAT, or LST amount.

You can link the Octroi tax code line or Entry tax code line to the transactions in one of the following ways:

  • Manually enter the tax code line on the order lines or invoice line.
  • Model tax exceptions in the Tax Exceptions by Country (tctax1100m000) session. This can become very complex.

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