• Registered: 05/10/2010
  • Posts: 8

Topic: Tax Setup Problem

I did set up for a new tax item called service tax in Frontaccounting but it is not working properly. What I did is as follows:

1. Opened new Tax types called service Tax, gave 12.36 in percentage and linked to newly opened respective accounts.
2. Opened a Group called Service Tax and include this Tax type in that Group.
3. Then opened Regular Service Tax in Item Tax Type and exclude other taxes (VAT, CST etc) by selecting from the list.

After doing that I opened new Item Categories and selected Regular Service Tax Type for the new categories.

Now all new Items under that category should be charged with Service Tax, but it is not happening. Whenever I am entering new Direct Invoice with selected item types, no tax is appearing.

Please help. Thanks

  • Registered: 05/10/2010
  • Posts: 8

Re: Tax Setup Problem

I could identify the problem. Customers need to be attached to a particular tax group and in my case it was attached to Tax Vat Group. Once I changed it to Service Tax Group invoice generation started working fine.

But it raised another question. If I want to sell different products to same customer which asked for different tax then how to tackle in Front Accounting.

Example

Selling a product where vat is applicable and selling another service where service tax is applicable.

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,106

Re: Tax Setup Problem

You can have different item tax types where you can setup as you please smile

/Joe