(IND) Create tax groups for service tax [AX 2012]

Updated: October 17, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

You can create and manage sales tax groups that determine the calculation of service tax. For example, for a vendor or a customer, you can create a sales tax group that includes tax codes for service tax, E-cess, or SHE-cess. You can then attach the sales tax groups to service tax codes.

  1. Click General ledger > Setup > Sales tax > Sales tax groups.

  2. Click New, and then, in the Sales tax group field, enter a unique identifier for the service tax group.

  3. Enter a description of the sales tax group.

  4. On the General FastTab, enter any other required information.

  5. On the Setup FastTab, click New. Then, in the Sales tax code field, select the service tax code to attach to the service tax group.

  6. Select the Exempt check box to exclude the sales tax from calculations. Then, in the Exempt code field, select the exempt code that justifies the exclusion.

  7. Select the Use tax check box to indicate that your organization pays a use tax on items and services that a vendor purchases from it.

  8. In the Percentage/Amount field, enter the percentage or amount of tax that is used to calculate the service tax.

  9. Enter or select any other required information in the form.

Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).