02 - Setting up Taxes

Setting up taxes in your Accounting App involves two main steps:

Step 1: Create a New Tax

Each tax (e.g., GST, VAT, TDS) should be created as a separate record.

To create a tax:

1. Navigate to the Taxes tab.
2. Click New in the top-right corner.
3. In the New Tax form, fill in the following fields:

4. Click Save.

Step 2: Define Tax Rates

Each tax must have at least one tax rate, categorized by Type – either Sales or Purchases.

To create a tax rate:

1. Under the Tax Rates related list, click New Tax Rate.

2. Select the Rate Type – Sales or Purchase.

3. Enter the Tax Rate Name

4. Enter the Rate (%).

5. Save the tax rate.
   

You can create multiple tax rates under one tax to handle different scenarios (e.g., CGST/SGST split, or different rates for services and goods).

Example:

• Tax Name: GST

• Tax Rates:

  • Sales: 9%

  • Purchases: 9%

Once created, the tax can be linked to Products, Invoices, and Bills.

You can also perform the following actions on existing records:

Edit Tax Component:
Update an existing tax component by selecting it, clicking Edit, modifying the details, and saving the changes.

Clone Tax Component:
You can quickly create a new tax component using the details of an existing one by clicking Clone, editing as needed, and saving it.

Delete Tax Component:
Remove a tax component permanently by selecting it and clicking the Delete button on its details page.

Attach Files to Tax Component:
Add supporting files to a tax component by clicking Upload Files under ‘Notes & Attachments’ or by dragging and dropping files directly.