1. Click Settings on the Navigation bar and select Payments & Taxes from the drop-down



2. If you have not defined the basic taxes beforehand, please add the Tax types by referring to the below link:

    

    How To Add New Tax Type? 


Eg: 1. Service Charge: 5%

      2. Value added tax: 14.5%

      3. Service Tax: 4.944% 

      

 3. Click on Add New Tax Group 



4. Give a name to the Tax group say Group-1


    NOTE: You can group up to 3 taxes in each Tax group




Based on the type of tax structure, you may select the Compound field 


 Example: Lets assume Product A costs 100 /- with the three basic taxes defined earlier. The following table gives a comparison of  a group tax calculation with and without compounding:

 

Product A

100

Gross Value

Product A

100

Gross Value

S.Charge 5%

5

Only On Gross Value

S.Charge 5% (SC)

5

Only On Gross Value

VAT 14.5%

14.5

ON  Gross Value

VAT 14.5%

15.225

ON SC &Gross Value

ST 4.944%

4.944

ON  Gross Value

ST 4.944%

5.191

ON SC & Gross Value

Gross Total

124.444

 ( NON Compound )

Gross Total

125.416

  ( Compound Tax)



a) Select Service Charge in the first field.

b) Check box the compound tax field. (If not selected, calculation type 1 of NON compound would be applied) 

c) Select Value added tax in the second field

d) Select Service Tax in third field


4. Click Add Tax Group to complete creating your tax group


5. To assign the Tax Group to a particular product, please refer the following link:

     

    How to assign a Tax type to a Product?


    You can create any number of Tax Groups based on your requirement