Tax type refers to the classification of sale or purchase on the basis of type of sale or purchase made

Tax Type

Tax Type refers to the classification of Sale or Purchase on the basis of type of Sale or Purchase made. Sale or Purchase is a state or local tax on the Sale or Purchase of the products or services, based on a percentage of the sale or purchase price. You can set up sales or purchase taxes for the state and local agencies where you do business.

To create various Tax Type, click on “Masters > Tax Type”, the following screen will be appeared:

Tax Type screen contains the following fields:

• Tax Type: Select the tax type whether it is Sale or Purchase.

• Name: Enter the name of the tax such as VAT, S/10% etc.

• Region: Select the region for the tax whether it is Local or central.

• Taxation Type: Select the taxation type for the tax as listed below:

1. Taxpaid is the amount value of tax that is already paid for the item.

2. Taxable is on goods or services. It is the full amount of tax paid to registered customer or vendor.

3. Against ST Form is a Tax Type against ST form.

4. Exempt is a tax type which is created for exempted items.

5. Multi Tax is a different type of tax rate to be applied on a single bill.

6. Tax Free: Goods or services which are tax free.

• Transaction Type: Select the transaction type for the tax whether it is Billing, Stock Transfer or Others.

According to Transaction Type the following field will be activated:

• Tax Invoice: A Tax Invoice will be issued with delivery of goods.

• Tax Rate: Enter the Tax Rate which is to be charged.

• Tax with Item Price: How much Tax is to be charged on Item price.

• Capital Purchase: Capital Purchase is a gain to investors from selling the Goods or Services.

According to Taxation Type (on selecting Against ST Form), the following fields will be activated:

• ST Form: It is Sales Tax declaration forms used by registered dealers.

• ST Return Form: Select the Return form for Sale Tax.
  According to Taxation Type (on selecting Multi Tax), the following fields will be activated:

• Calculate Tax On: Enter the amount (in percentage) which is to be charged.

• Bill Sundry: Select the Bill Sundry that is to be charged.

Comments: Enter the special note of Tax Type.

After entering all the details, click on “Save” button to save the information.

The following buttons are used in Tax Type Form:

• Add: To add new entry.

• Save: To save the data.

• Cancel: To cancel particular operation.

• Edit: To edit existing records.

• Delete: To delete the record.

• Exit: To exit from current window.

• List: To generate a list of all existing records.

If you want to view the detail of Tax Type record then select that record from the list and press Enter or Double click.