Tax,Zones,Tax Class and Tax Rates

[soibaal]

Hello friends

I wonder if you could help me. I am facing problem to define a tax rate for my country and others.
I have read the oscommere documentation but still not clear. I am not a tax person.

When i create a tax zone what should i bear in my mind.
Tax zone is a directory. what does it mean? Moreover this zone shows up as drop down when i define a tax rate.
So what happens to all the zones that appear under the main Tax zone.
Should Main tax zone be a country or a state within the country.

help
ashok

[soibaal]

Dear sir

I wish to incorporate this scheme.
For all zones in india uniform tax rate of 15%.
For maharastra zone additional tax of 5%.

so for if retail price = 50000
-----------------------------
India (except Maharastra) gross price = 57500
Maharastra gross price = 60000

Now for this
a)
i have create a zone named "India" with (India >> all zones) and another "x" ( India >> Maharastra relationship) in tax zones.

b) then i created two tax class India and Maharastra.
c) Defined Tax rates as under
i) India tax class >> India zone to 15% priority 1
ii) India tax class >> Maharastra zone to 5% priority 2

my stores configuration for "display prices with tax is true"

RESULT I M GETTING
for Tax class India Gross 60000
for Tax class Maharastra Gross 50000

plz help where i am committing the mistake.

thanks a billion.

ashok

[jpf]

First - make sure you have the required ZONES enter and correct - typically countries and state/province (I am not sure what Maharastra is - Country, state, province, city/town, county, region ... and of what).

Next Setup up your Tax Zones - the TYPES of TAXES - each and every kind.

IE:
State tax (@15%)
City Subtax (@5%)

Then setup your items Tax Classes (this is for your item - if they qualifies for a tax or not)

Taxable (all taxes applied to these items)
Non-Taxable (no taxes for this item)
GST or VAT only (only a certain tax applicable)


Now LINK them together...TAX RATES

Link all the types of Tax classes separately to each TAX ZONE and assign the required TAX % rate - plus a description for printing this tax detail.

Typically Priority will all be the same - unless you want to tax your taxes (like one province over here does).

See Demo site below.

Good Luck!

[soibaal]

Dear sir

Maharastra is a state. Zones were created as under

Country State
------- --------
India Chhattisgarh
India Maharastra
India Orissa

and so on

ashok