To define default tax codes

This functionality is specific for India.

Different countries and states have different tax rates for transactions within them and for transactions across the borders. In addition, special tax rules can apply to freight invoices.

To define the default tax codes for the various types of transactions, take the following steps:

  1. Set up the tax codes as described in To set up tax registration. You must define a tax code for each tax rate of each state.

  2. In the Tax Handling (tctax0138m000) session, specify the default tax codes of each state. If a tax code applies to a specific item, you must specify the item. LN applies the tax codes with an empty Item field to all the items for which you do not define specific tax codes.

    For domestic tax, the search path for the tax code includes the tax codes of the item data. For details, refer to Item tax codes for domestic tax.

You can define default tax codes for the following types of tax:

Item tax codes for domestic tax

For domestic tax, you can also use the following sessions to link default tax codes to items or item groups :

  • Item - Sales (tdisa0101s000).
  • Item - Purchase (tdipu0101m000).
  • Item - Sales Defaults (tdisa0102s000).
  • Item - Purchase Defaults (tdipu0102m000).

LN uses these default tax codes if you do not define a specific domestic tax code for the item in the Tax Handling (tctax0138m000) session.

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