Tax Type

How to | See Also | Summary

• Tax Type Or Forms are extra charges are charged by different parties on different items or tax categories, these extra charges will be paid to goverment by each party after the sale.Three type of default tax type name as Central, State and tax free is already in backoffice,for local tax is free, but for central and state will be charge 2% and 10%
• By tax type you can create new tax type like for purchase you can create new purchase tax on various item, likewise for other purpose may be stock out, wholesale etc tax you can create the tax type.
• You can also add exclusive and inclusive tax on the items, you may also add MRP variant on inclusive tax charges.

Tax Type name:
This tax type this will be require as Tax type while creating new party master and also at an order from various party group.
Description:
Short Description or name of the Tax Type, this will be used at Report Creating.
Extended Description:
Detailed Description of the Tax Type, sometimes useful at Report and Retail Counter.
Short Name:
Very Short Description or "Alias" of the Tax Type, helpful in searching the article from the search-list while feeding orders.
Active Status :
When checked, this tax type is treated as Active and available in all search-lists order. The Inactive tax type are not available in the search-lists, however you can get reports for all tax type regardless of its Active Status.
Exclude from Purchase:
When the option checked, the tax amount will be excluded from Purchase amount while posting into books of accounts or geting stock evaluation Report, hence tax amount will be posted in separate account.
Current State
Current State as specified into store information.
Tax Calculated On:

1. Net Value
2. Gross value

Tax Method:
There are two types of tax method as follow:
i) Exclusive:-Tax price is not included into sale price & it is exclusively mention in the sale price,this method apply where MRP not mention & this term is applicable for purchase order from buyer and Buyer order in wholesale.
ii) Inclusive:Tax price is already included into the sale price.This tax method apply at end user(Customer) & where MRP term is applied

Tax Charges:

1. Basic Tax: This will be charged when Tax method is Exclusive
2. Surcharge:This is some the basic of tax charge
3. Edu.cess:This is basic of tax
4. Total Tax percentage:The total of Basic tax, surcharge & Edu.cess

MRP Tax Variant:
it will be applied on inclusive tax method when some seller want to MRP variant on item or add some extra tax on items
Example: 0-5000 the variant of tax will be 2% & 5000-infinite the variant will be 5%.

• Add New Tax Type
• Specify MRP variant on Inclusive tax
• Edit the existing Tax Type

Add New Tax type :

Select Setting from Menu bar. .

Click on Tax specifications and the tax type grid page will get open up.

Now,Click on Add new tax type from the tasks and The tax type master page will get open up.

Specify the tax type name and if necessary specify description, extended description & short name.

Tick the status active.

Tick the Exclude from Purchase option as per your requirement if it is checked then the tax amount will be excluded from Purchase amount while posting into books of accounts or geting stock evaluation Report, hence tax amount will be posted in separate account.

Select the tax calculation as per your requirement.

Select the tax method type as explained earlier in description of various tax type method and its uses.

Specify the tax basic charges if you are selecting exclusive method

Likewise, if any other tax charges specify it in Edu.cess and Surcharge

Specify MRP variant if you have selected tax method as Inclusive.

Click on Save button

Specify MRP variant on Inclusive tax:

Click On Edit button from toolbar .

Click On Tax variants

Click On Add new Mrp range button.

Specify, From Mrp value.

Then Specify To Mrp value

Click On Save button

Edit the existing Tax Type :

Click on Setting from Menu bar. .

Click on Tax specifications and the tax type grid page will get open up.

Select the list from table and then click on Edit the existing tax type from the tasks, The tax type master page will get open

Now Modify the entry you want to edit.

Click On Save button

See Also: Tax category | State-Wise tax.