The tax rate master allows you to define the settings of the two types of taxes that are item tax and global tax. You can set the taxes as per the requirement.
Adding New Tax Rate Master
To add a new tax rate master, go to Configurations > Tax Setup > Tax Rate Master, the Tax Rate Master page is displayed.
Click the Add New button on the top of the tax rate master page, a pop-up is displayed.
Tax Type: This is a drop-down list from which you can select your desired Tax type.
Tax Group ID: Enter a unique Tax Group ID.
Tax Group Name: Enter a unique Tax Group Name.
Is Tax 1 bundled with price? This checkbox allows the inclusion of tax calculation in the item’s price.
Tax 1 Percentage: Enter Tax 1 Percentage in this field.
Tax 1 Calculate On: This is a drop-down list. Select Amount before Discount or Amount after Discount. This decides whether tax is calculated on the amount before the discount or after the discount as per the requirement of your company.
Then click on Proceed then saved the tax rate.
Is Tax 1 Fixed Amount? This checkbox is used to determine the fixed type of tax.
Note: In the case of Fixed Tax, you do not need to enter a percentage.
A confirmation message is displayed on top of the page.
Updating/Editing Tax Rate Master
To update or edit the tax rate master, go to Configurations > Tax Setup > Tax Rate Master, the Tax Rate Master Page is displayed.
If you need to perform any update in Tax Rate Master Information then click on the Edit icon which is under the Options.
The detail of the specific Tax Rate Master is shown in the pop-up.
Make your desired changes in the Data Update pop-up. After making all the changes click on OK and your information is saved.
Deleting Tax Rate Master
To delete any tax rate master entry, go to Configurations > Tax Setup > Tax Rate Master, the Tax Rate Master page is displayed.
When you will click on the Delete icon which is under the Options. A confirmation pop-up will appear.
If you need to delete a record then you click on the Yes button and the record is deleted.
Note: The Item Tax is calculated based on each item’s price whereas the global tax is applied on all the items purchased by a customer in an invoice.