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Level 4

How to calculate further tax on the inclusive-tax amount?

Hi All,

 

We have to record and pay the tax/amount which is calculated on already taxed item (i.e. amount of item plus respective tax amount, calculated on base amount). For example, we purchase an item at the cost of 10,000 and the GST on this is 5%. So, the inclusive tax amount will be (10,000 + 500 = 10,500). Now there is requirement to calculate further 2% tax on this calculated amount (10,500). I.e. 10,500 + 2% of 10,500 [210] = 10,710.

 

Please guide how to record and pay the said tax in QBO?

 

Regards,

Abdul Rehman.

Solved
Best answer 10-21-2019

Accepted Solutions
QuickBooks Team

Re: How to calculate further tax on the inclusive-tax amount?

It's great to see you again, Abdul Rehman!

 

We can only apply a tax rate or a group rate to a line item in QuickBooks Online. You may want to find an app online (Google) that can help you manage your sales and taxes in QuickBooks.

 

I would also appreciate it if you can share the name of the app here, so other users in your country will have an idea about it.

 

By the way, I like that you keep asking questions about QuickBooks. I see you here everyday! How’s your setup going so far? We have some Help articles for your additional reference.

View solution in original post

1 Comment
QuickBooks Team

Re: How to calculate further tax on the inclusive-tax amount?

It's great to see you again, Abdul Rehman!

 

We can only apply a tax rate or a group rate to a line item in QuickBooks Online. You may want to find an app online (Google) that can help you manage your sales and taxes in QuickBooks.

 

I would also appreciate it if you can share the name of the app here, so other users in your country will have an idea about it.

 

By the way, I like that you keep asking questions about QuickBooks. I see you here everyday! How’s your setup going so far? We have some Help articles for your additional reference.

View solution in original post