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Managing HSN Codes/SAC and Tax Rates

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Managing HSN Codes/SAC and Tax Rates

Order in which HSN code and tax rate are applied for goods

 Specifying HSN code and tax rate

Based on your business requirements, you can provide HSN codes and tax rates at different levels.

After defining a tax rate at the company level, if a group of items attracts another rate, specify at the stock group level. For the items in the group, the rate specified at the group level is applicable. After specifying tax rates at the stock group level, if a few items in the group attract a different rate (or the rate set at the company level), override using rate setup at the stock item level. For the items, the rates specified at the stock item level are applicable.

You can specify tax rates at the sales or purchase ledger level, or at the ledger group level. This helps in situations where a special tracking as per the nature of tax is required. For example, you can use a ledger called Diplomat-Sale for exempt sales of taxable goods when the buyer is a diplomat. Then the rate defined at the ledger level will override the tax rates set at the company, stock group, or stock item levels.

ction, you can do so, and the rate specified during the transaction will get the highest priority.

Order in which SAC and tax rate are applied for services

 

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