How does Tax calculated in selling time on a product?
Earlier we mentioned in the "Tax Item Profile" article how tax applies to a product.
We know that there is an option to pay tax on the product while adding the product, Those taxes will be effective at the time of sale according to the amount of tax given in the product profile.
Let's make an example:
Step 1: Let's assume a product's price is 103, and the applied tax is CGST = 1%, SGST = 1 %, IGST = 1% and VAT = 1% respectively
So, Tha tax calculation formula will be ((Total Tax percentage * Product Price) / 100), According to this formula the amount will be for CGST, SGST, IGST = ((4 * 80) / 100) = 3.20
NB: Note that this formula only applicable for when customer is Different state, If customer is same sate Tax Calculation formula will be same but tax will be applied only "CGST, SGST, VAT"
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