How to configure a Tax Rule to collect Indirect Tax from your Customers and Sub-Resellers?

Once you have understood what Indirect Tax is and how our Tax Engine can be used to collect the same from your Customers and Sub-Resellers, you can proceed adding a Tax Rule for any Products/Services to which Tax is applicable. Click here to understand what Taxes are and how the Sree Jain Infotech Tax Engine works >>

1. Login to your Control Panel from http://domains.bookandhost.com/reseller

2. Click on Settings -> Finance & Billing -> Configure Taxes

3. Review any existing Tax Rule that you may have created before and then click on the button Add New Rule to create a unique Tax Rule.

4. Fill in the following details and click on the Add Rule button:

  • Product Category - For each Product that you wish to Tax your Customers/Sub-Resellers, you need to create a separate Tax Rule. In case you wish to charge the same Tax for all Products, you would need to repeat these steps.
     
  • Tax Percentage - This is amount in percentage that you wish to be charged over the Invoice amount to your Customers/Sub-Resellers.
     
  • Tax Label - This is the name of the Tax that will be shown to your Customers/Sub-Resellers in their Invoices e.g. Sales Tax, VAT, Service Tax, etc.
     
  • Country - Select the Country here for which this Tax Rule needs to be applied. Select Any Country to apply this Rule to all Customers/Sub-Resellers irrespective of their Country.
     
  • State - Select the State from the selected Country here. Select Any State to apply this Rule to all Customers/Sub-Resellers irrespective of their State.
     
  • Time Zone - The Time Zone works in conjunction with your Tax Rule's Start and End Date. That is, a particular Tax Rule starts and end as per the Time Zone you have selected.
     
  • Tax Start Date - This indicates the day when a particular Tax Rule would start from. Any Invoice prior to the Start Date would not be Taxable. You may set the Start Date as either today or any day after that.
     
  • Tax End Date - This indicates the day when a particular Tax Rule would end. Any Invoice after the End Date wouldn't be Taxed. You may set the End Date as same as the Start Date or any day after that.
     
  • Invoice Footer - Here you should mention your Tax Registration Number or any other detail regarding this particular Tax label, to be displayed within Invoices to your Customers/Sub-Resellers to whom this Tax applies. The Invoice Footer is only displayed to your Customer/Sub-Reseller when he clicks on the Print button in the Invoice Details view.
     
  • Exempted Reseller Ids - Here you may mention any Reseller Ids to whom you do not want this Tax to be applied. Typically, you may want to do this for any Sub-Reseller account that you may have created for yourself.
     
  • Exempted Customer Ids - Here you may mention any Customer Ids to whom you do not want this Tax to be applied. Typically, you may want to do this for any Customer account that you may have created for yourself.

5. Confirm that you have set the Tax Rule appropriately and then click on the Confirm button. If you wish to tweak the Rule further, you may click on the Edit button and then proceed further. Clicking on the Cancel button will abort this Rule's creation.

Upon confirming a particular Tax Rule, Tax would begin displaying to your Customers/Sub-Resellers for the selected Product from the Start Date.
 

How does a Tax Rule affect transactions?
 

While Adding an Invoice

  • Each time an Invoice is raised, the system will check if there is a matching active Tax Rule. If there is a matching Tax Rule, then the Tax amount is calculated and stored alongwith the Invoice amount.
     
  • The Invoice payable by your Customers/Sub-Resellers would be inclusive of the Tax amount.

While Balancing/Paying an Invoice Click here to understand how to Balance/Pay a Pending Invoice >>

  • When an Invoice is to be balanced against a Credit Note/Receipt, then the entire Invoice amount including the Tax amount needs to be balanced/paid.
     
  • In case any Invoice is partially balanced/paid then the Tax amount can be considered to be balanced/paid proportionately.
 
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