Overview

This functionality is specific for India.

Aggregate tax code is used to calculate the total tax amount (claimable and non-claimable) for a transaction with multiple taxes payable to different tax authorities. You can define an aggregate tax code in the Tax Codes by Country (tcmcs0136s000) session. You must use the Aggregate Taxes (tctax9141m00l) session to represent all the taxes applicable to a transaction.

Aggregate tax code is used in the following scenarios:

  • Tax consists of claimable and non-claimable elements payable to different tax authorities.
  • Tax is calculated on the transaction amount as well as another tax amount.
  • Multiple taxes are applicable for a single transaction and each tax rate is applied on a different amount.
  • Tax is calculated at different rates based on the transaction amount of the item.

Tax in an aggregate tax code can be calculated as follows:

  • Parallel
    Independently for each layer.
  • Cumulative
    On the cumulative amount of the selected layers. A layer also represents cumulative tax amount of all the sequence numbers.
Layer

LN uses layers to define amounts and tax codes in an aggregate tax code. To calculate tax on a particular layer, you must select the corresponding checkbox. A layer can be of the following types:

  • Amount
    You must define the origin of the taxable amount on which a tax code must be applied. You must define all the amounts before you define a tax code.
  • Tax
    You must add tax codes to the aggregate tax code. You can add only singular tax codes.

For more information, refer to To use layers in aggregate tax.

Assessable value

The value of an item on which the tax is calculated, when landed costs are not applicable to the transaction. The assessable value (ASV) can be different from the transaction value for each tax.

Tax Breakdown Structure

The tax amounts of the aggregate tax code linked to an order or invoice are displayed in the Tax Breakdown Structure (tctax9141m10l) session.

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