Defining a Tax Rule
Access the Tax Rule Revision form.
- Tax Rule Name
Enter the name of the rule that the system uses to calculate taxes.
- Description
Enter text that describes the tax rule name.
- Tax Rule Type
Enter a user-defined code from UDC table 75I/ET that specifies the type of tax. Values are:
1: MRP
2: abatement
3: assessable value
4: exception
5: exemption
6: Rounded Taxable
- Effective Date
Enter a date to indicate when the tax rule becomes effective.
- Expired Date
Enter the expiration date for the tax rule.
- Rule Percentage
Enter a percentage for the system to use when calculating the tax amount. The system calculates the tax amount by using this percentage and the tax rule type that you specify. For example, the system uses the percentage as a reduction on the item price when calculating taxes for abatements.
- Rule Notification Number
Enter the number specified by the Government of India that allows you to apply abatements, exceptions, or exemptions.
- Rule Value
Enter an amount or value for the system to apply to each pricing unit. Enter the amount in the domestic currency of your company. The system uses this amount for assessable value, MRP tax rule types, and for rounding off taxable amount. This is mandatory for TCS.