Taxes

Your business’ financials are affected by the Goods and Services Tax to which you must adhere. You may have configured GST in the Quick Setup section. In this page, you’ll learn about configuring GST Settings, Tax Rates, Tax Exemptions and Default Tax Preference.

GST Settings

If you haven’t configured GST in Zoho Books, you can configure it in the GST Settings tab. To configure:

If you have selected the Direct Filing option,

GST-Settings

Tax Rates

Once you complete configuring GST Settings, the default GST tax rates are auto-populated in the Tax Rates tab. You can add new tax rates, edit the existing tax rates, delete the tax rates or add a new tax group based on your need.

Adding New Taxes

To create or add a new Tax, follow steps as below:

Adding Taxes

Adding Overseas Taxes for Digital Services

To create a new tax that can be applied on the sale of digital services to overseas customers:

Adding Taxes

Editing Taxes

To edit an existing Tax follow steps as below:

Editing Taxes

Deleting Taxes

To delete an existing tax follow steps as below:

Delete tax


Adding a New Tax Group

It is customary in some countries to club some taxes under a common head. In such cases you will have to create Tax Group which will fulfill this regulatory requirement. To create a Tax Group:

Add Tax group


Tax Exemptions

The government has introduced zero rated tax as part of the four slab GST structure. As per the model GST law, 50% of the goods that belong to the Consumer Price Index (CPI) basket are eligible for zero rated tax. So, if you run an organization that sells zero rated or exempted goods, you can add the reason for tax exemption and choose the same while raising an invoice.

To add Tax Exemptions:

Tax Exemptions


Default Tax Preference

In Zoho Books, you can select the default tax preference for the Intra State Tax Rate and Inter State Tax Rate. This tax preference will be applied on the items and transactions by default depending on tax type.

To configure the default tax preference:

Default Tax Preference


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