@asad8891.. Did you manage to get it sorted? It should be fairly easy but tricky in certain ways. As ponocho1234 stated you need to review Tax Groups.. also you need to to edit/add your customers and branches to use these tax groups.. One main thing that is very important is these tax types need to belong to different tax GL Accounts (each is different)... You might need to set these accounts before you create the tax types.
Its doable.. its done before.
Come back if u need further help.
]]>Using Tax on already added Tax (Pakistan)
Certain regions in Pakistan have a Provisional Tax of 19.5% and a Advance Income Tax of 12.5% on already taxed items. Here is how you can handle that.First create 2 Tax Types:
Provisional Tax 19.5%, rate 19.5 Remember to include the 19.5% in the name.
Advance Income Tax 12.5%, rate 14.9375(12.5 * 1.195). Remember to include the 12.5% in the name. You will need to increase the percent decimals in preferences. The value 1.195 is the value of Provisional Tax + 1. If the Provisional Tax was 6% this value would be 1.06.
Combine these two Tax Types into a Tax Group.
Find the variable, $suppress_tax_rates, in config.php about line 193. Change the value to 1. This will suppress the internal tax rate when printing.
That's it.
The last sentence is no longer valid in current FA version; you now suppress tax rates in Setup->Company setup-> Suppress Tax Rates on Docs: checkbox
Read the wiki on tax groups.
Try it out on your training company first
]]>Follow the Canadian Example.
]]>Actual Amount of 100
Provisional Tax 19.5% = 19.5
Total Amount A= 119.5
Advance Income Tax = 12.5%
It is calculated "Total Amount A 119.5 *12.5% = 14.9
Grand Total = 119.5+14.9= 134.4
Is it possible to calculate tax like this in Front accounting?
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