Tax Management

I have a bill from Telco and for local calls, there is GST. But for ovreseas call, GST is exempted. These transactions come in the same bill. How do I setup and record?

Highnix ERP can handle a common issue that is difficult to resolve for users who are not using the system. This issue is the need to apply different GST rates to different types of calls on a telco bill. In this scenario, local calls are subject to GST, while overseas calls are exempt. Highnix ERP can handle this by setting up a simple one-time rule. This rule can then be applied to different vendors, customers, and products.

1. Setup a tax group:
   1. Go to System Setup > GST Tax Group.
   2. Create a new tax group and name it "Purch Invoice with TX & ZP".
   3. Under "Select the taxes that are included in this group", check the "ZP" and "TX" check boxes.
   4. Save the tax group.
2. Setup an item tax exemption type:
   1. Go to System Setup > Item Tax Exemption Type.
   2. Create a new item tax exemption type and name it "Items Not Taxable - ZP and ZR 0%".
   3. Under "Select which taxes this item tax type is exempt from", check all boxes except ZP and ZR.
   4. Save the item tax exemption type.
3. Create an item tax:
   1. Go to System Setup > Item Tax.
   2. Create a new item tax and name it "Items Taxable - SR and TX-Prevailing Rate".
   3. Under "Select which taxes this item tax type is exempt from", check all boxes except SR and TX.
   4. Save the item tax.
4. Create a supplier:
   1. Go to Purchase Mgt > Maintenance > Add and Edit Supplier Records.
   2. Enter the supplier's name as "Telephone Company".
   3. In the Tax Group pull-down box, select "Purch Invoice with TX & ZP".
   4. Save the supplier record.
5. Create products:
   1. Go to Inventory/Product Mgt > Maintenance > Add and Edit items.
   2. Create a product called "Local Phone Calls".
   3. In the Item Tax Type field, select "Items Taxable - SR and TX-Prevailing Rate".
   4. Create another product called "Overseas Phone Calls".
   5. In the Item Tax Type field, select "Items Not Taxable - ZP and SR-Prevailing Rate".
   6. Save the products.
6. Enter a bill:
   1. Go to Purchase Mgt > Create Bills.
   2. Select the "Telephone Company" supplier.
   3. Add the "Local Phone Calls" and "Overseas Phone Calls" products to the bill.
   4. Save the bill.

With this setup, the system will be able to record all the taxable and non-taxable input purchase. Note: This setup can also be used for sales invoices. If you need to bill a taxable and non-taxable service or product in the same sales invoice, you can follow the steps above, but instead of creating a purchase bill, you would create a sales invoice.

Go to Top

---

Starting year 2024, the GST will be changed from 8% to 9%, how do I go about changing it?

Go to Top