Tax Deduction at Source (TDS) and Service Tax Entries in the Invoice
Mike or Penny Novack
mpnovack at mtdata.com
Wed Nov 30 08:34:47 EST 2016
On 11/29/2016 10:25 AM, David T. via gnucash-user wrote:
> I’m not much of an expert, but have you read the sections on applying tax tables to invoices (Chapter 13 in the Guide)? It seems to me that you might be able to have a 10% negative TDS tax and a separate 15% ST applied to each invoice. I’m not sure where you’d put the TDS and ST accounts, but I imagine others can advise you on that.
>
> David
Not easy to have a GENERAL solution to automate this problem (multiple
taxes, possibly some negative).
That's because will depend on the rules of the jurisdiction(s). In THIS
case, it appears that both percentages would be applied to the original
amount.
That is far from obvious. Over here (USA) that can be the case, but
sometimes it is not, and we are charged tax upon tax! In which case the
ORDER matters very much. We also sometimes have "tax holidays" so can
be date dependent.
Michael D Novack
PS: If an example is needed, in the states in which I have bought tires,
the state sales tax is computed AFTER having added in the Federal excise
tax. But maybe in your state not. The state in which I now live
sometimes declares a "tax holiday", a time period, usually just a couple
days in duration, during which no sales tax. There also can be quite
complex rules about what is subject to tax and what is not (for example,
items of clothing costing less than X are not subject to sales tax).
It is usually a "point of sales" applications that handles details like
that, passing the result to the accounting application. In other words,
as the invoice is being prepared, items grouped into two "buckets", one
subject to tax and one not, then the tax figured on the taxable total.
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