| # Overview of Aggregate tax code This functionality is specific for India. Aggregate tax code is used to calculate the total tax amount (claimable and non-claimable) for a transaction with multiple taxes payable to different tax authorities. You can define an aggregate tax code in the Tax Codes by Country (tcmcs0136s000) session. You must use the Aggregate Taxes (tctax9141m00l) session to represent all the taxes applicable to a transaction. Aggregate tax code is used in the following scenarios: Tax consists of claimable and non-claimable elements payable to different tax authorities. Tax is calculated on the transaction amount as well as another tax amount. Multiple taxes are applicable for a single transaction and each tax rate is applied on a different amount. Tax is calculated at different rates based on the transaction amount of the item. Tax in an aggregate tax code can be calculated as follows: Parallel Independently for each layer. Cumulative On the cumulative amount of the selected layers. A layer also represents cumulative tax amount of all the sequence numbers. Layer Infor ERP LN uses layers to define amounts and tax codes in an aggregate tax code. To calculate tax on a particular layer, you must select the corresponding checkbox. A layer can be of the following types: Amount You must define the origin of the taxable amount on which a tax code must be applied. You must define all the amounts before you define a tax code. Tax You must add tax codes to the aggregate tax code. You can add only singular tax codes. For more information, refer to To use layers in aggregate tax. Maximum taxable amount in an aggregate tax The maximum amount up to which a particular tax rate is applicable. If the item value exceeds the maximum taxable amount, then a different tax rate is applied on the excess amount. You must define the Currency for each Tax Code in the Aggregate Taxes (tctax9141m00l) session. Infor ERP LN considers the lesser of the Maximum Taxable Amount and the amount represented by the layer on which tax is calculated. Assessable value The value of an item on which the tax is calculated, when additional charges are not applicable to the transaction. The assessable value (ASV) can be different from the transaction value for each tax. Taxable Assessable value The value of an item on which the tax is calculated, when additional charges are applicable to the transaction. If tax is applicable on the additional charges, Taxable Assessable value = Assessable value + additional charges. Tax Breakdown Structure The tax amounts of the aggregate tax code linked to an order or invoice are displayed in the Tax Breakdown Structure (tctax9141m10l) session. Related topics Example of aggregate tax code To use layers in aggregate tax To set up an aggregate tax code |