Multiple tax codes - example
This functionality is specific for India.
Define the first tax line for the tax on the transaction amount.
Define the next tax code line for tax on the sum of transaction amount and the
first tax amount.
For example, if you must pay CST and Entry tax, set up the first
tax line for the CST and define the next tax code line for the Entry tax.
Example
The following tax rates apply to your
transactions:
- CST: 10 % over the transaction amount
- Entry tax in Bihar state: 4 % over the transaction amount +
CST
Set up a multiple tax code with the following details:
-
In the Tax Codes by Country (tcmcs0136s000) session enter the following:
- Country: India
- State/Province: Bihar
- Tax Code: CSTB
- Description: Bihar CST plus Entry
- Singular Tax: No
-
For the same combination of tax code by country and
state, in the Multiple Tax Code Lines (tcmcs0135s000) enter the
following details:
-
For the CST on the transaction amount
- Sequence No.: 1
- Description: CST
- Calculation Method: Parallel
- Expense Purchase Tax: Yes
For the entry tax on the sum of transaction amount
and the CST
- Sequence No.: 2
- Description: Entry
- Calculation Method: Cumulative
- Expense Purchase Tax: Yes
-
For the tax code lines, in the Multiple Tax Rates (tcmcs0133m000) enter the following details:
-
For the CST on the transaction amount
- Sequence No.: 1
- Tax Rate: 10
For the Entry tax on the transaction amount plus the
CST
- Sequence No.: 2
- Tax Rate: 4