Example of aggregate tax code

The value of an excisable item is INR 70,000. The applicable taxes are as follows:

• Basic Excise Duty (BED) is 16% on Order line price.
• Education cess (Ecess) on BED is 2%.
• Secondary and Higher Education cess (SHEcess) on BED is 1%.
• Central sales tax (CST) on Order line price + BED + Ecess+SHEcess is 4%.

1. In the first layer, enter the following values:
   • Set the Type field to Amount.
   • In the Percentage field, enter 100.
   • Set the Amount Origin field to Order Line Price.
   • When the approved aggregate tax is linked to the transaction with order line price INR 70000, the layer 1 represents INR 70000.
2. In the second layer, enter the following values:
   • Set the Type field to Tax.
   • In the Tax Code field, select the tax code representing the 16 per cent tax from the Tax Codes by Country (tcmcs0536m000) session.
   • Select the Layer 1 check box. Tax is calculated as 16 % of 70000 = INR 11200.
3. In the next layer, enter the following values:
   • In the Tax Code field, select the tax code representing the 2 per cent tax from the Tax Codes by Country (tcmcs0536m000) session.
   • Select the Layer 2 check box. LN calculates the tax as 2 % of 11200 = INR 224.
4. In the next layer, enter the following values:
   • In the Tax Code field, select the tax code representing the 1 per cent tax from the Tax Codes by Country (tcmcs0536m000) session.
   • Select the Layer 2 check box. LN calculates the tax as 1 % of 11200 = INR 112.
5. In the next layer, enter the following values:
   • In the Tax Code field, select the tax code representing the 4 per cent tax from the Tax Codes by Country (tcmcs0536m000) session.
   • Select the Layer 1, Layer 2, Layer 3 and Layer 3 check boxes. LN calculates the tax as 4 % of (70000 + 11200 + 224 + 112) = INR 3261.44.
6. The total tax applicable on the transaction is 11200 + 224 + 112 + 3261.44 = INR 14797.44