To use layers in aggregate tax

This functionality is specific for India.

An aggregate tax code consists of layers that represent the amounts or taxes. To use an aggregate tax code, you must define the following:

  • Amount origin on which tax must be calculated.
  • Tax codes.
  • Layers on which a tax code must be applied.

The maximum number of layers that can be used in the Aggregate Taxes (tctax9141m00l) session is defined in the Number of Layers field in the Tax Parameters (tctax0100m000) session.

To add amount to a layer

An aggregate tax code must contain at least one layer with Type set to Amount. You must enter the values in the following fields:

  • Type: select Amount
  • Percentage: specify a value between 0 and 100.
  • Amount Origin: Select one of the following values.
    • Order Line Price
    • Maximum Retail Price
    • Assessable Value For Excise
    • Assessable Value For VAT
    • Assessable Value For Service
    • Customs Value
  • The first layer must have a Percentage of 100.
Note

You must define all the layers of Type set to Amount before you define a layer of Type set to Tax.

To add tax code to a layer

An aggregate tax code must contain at least one layer with Type set to Tax. You must enter the values in the following fields:

  • Type: select Tax
  • Tax Code: select an approved singular tax code from the Tax Codes by Country (tcmcs0536m000) session.
  • Maximum Taxable Amount: specify the maximum limit of the amount upto which the tax rate is applied. The field is empty if there is no upper limit for the amount.
  • Layer check boxes: Select the appropriate check box to indicate the layer on which the tax must be calculated. You can select multiple check boxes.
To add tax codes to a tax layer

You can add upto 9 tax codes in the same layer.

  • In a new layer, LN increments the value of the Layer field by 1. You must delete the number and enter the value of the layer to which you want to add another tax code. LN increments the Sequence Number.
  • Select the appropriate layer check boxes for each sequence number.
  • A layer with multiple tax codes represents the cumulative tax amount of all the sequence numbers.

In cases the tax rate depends on the transaction amount, you must add a tax code for each tax rate and the maximum amount for which the rate applies. For more information, refer to Example of aggregate tax code.

Note

You can edit the Layer value only when the layer is of Type Tax.

To select the applicable layers

Each layer in the Aggregate Taxes (tctax9141m00l) session is also represented by a check box. Each check box representing a layer is enabled for the subsequent layers for which the Type is set to Tax. That is, a Layer with value 1 is represented by the Layer 1 check box. The Layer 1 check box is enabled for the subsequent layers if the value of Layer is greater than 1 and if the value of the Type is Tax. If the tax is calculated on the amount defined in Layer with value 1, you must select the Layer 1 check box in the layer where the tax code is defined.

The number of check boxes for a layer is one less than the value defined in the Number of Layers field of the Tax Parameters (tctax0100m000) session. Each check box is enabled only if the corresponding layer has been defined, that is, only the check boxes representing the preceding layers are enabled.

In the Tax Parameters (tctax0100m000) session, the Number of Layers field is defined as 10. In Aggregate Taxes (tctax9141m00l) session, each layer has 9 check boxes Layer 1, Layer 2 and so on up to Layer 9 representing the layers with value 1, 2 and so on up to 9.

  • For each layer of Type Tax, you must select at least one check box, that is, the tax code is applied on the layer represented by the check box.
  • You can select multiple check boxes for a single layer. The tax code is applied on the cumulative amount of the layers represented by the selected check boxes.
  • For a layer of Type Amount, a check box is selected only when
    • The Percentage is less than 100.
    • The Amount Origin is same as that of the layer represented by the check box.
  • For example, for Layer 1, the Amount Origin is Order Line Price and the Percentage is 100.
  • In Layer 2, the Amount Origin is Order Line Price and the Percentage is 70. LN selects the Layer 1 check box, to indicate that 70 per cent is applied on the amount in the Layer 1.

You must approve the aggregate tax code in the Tax Codes by Country (tcmcs0536m000) session. The tax amounts can be viewed in the Tax Breakdown Structure (tctax9141m10l) session, when the approved aggregate tax code is linked to a transaction.

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