Including Taxes on Items + Transport charges

I need to be able to add taxes on both Items and freight charges. The system calculates taxes on items only. How can I add taxes to freight?
e.g. Item1=100
Tax(10%) will be calculated based on 100, i.e. 10
I need the system to calculate on total, i.e. tax should be = 15 (10% of 150)

Thanks in advance

While entering tax, select “ON Previous row total” option and in row id enter previous tax row id. It will calculate tax on (item amount + tax).