India Compliance - Behaviour during Multiple Companies

How does the tax system work when there are multiple companies created in a single instance?

When I create a new company, automatically the taxes for those are automatically added. Is there a specific way for this to be organized?

You are good to go with the default setup that’s automatically created for a company.

The new company set up starts with new accounts for the company and so on. By default, these fixtures are set up for the company.

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But with the default setup, the taxes are not auto-populated either in purchase or sales transactions.
Item Tax Template has to be re-configured and the Tax Rule appropriately set to auto-populate taxes in the transactions.
Even in the case of multiple companies maintaining different accounts of each tax types, I had to re-configure it. the default setup did not work.

What does your new configuration look like?
What changes did you make?

If this is beneficial for all, we can add this to the default fixtures of the app.

You can create a GitHub issue as well.

Following are the notes for a single company configuration
1. Install the India Compliance Application
All related account details will be auto populated.

2. Company Settings
Accounting → Accounting Masters → Company
Create a new Company or Select an existing company
Setup GSTIN/UIN & Tax ID fields
PAN will be auto created from GSTIN
Select the GST Category at the bottom of the page.
Expand the Address & Contact section.
Create a new Address or Select an existing Address by clicking “Edit”.
Update the GSTIN/UIN under the Tax Details Section.
Set the GST Category.
Save the changes.

3.Chart of Accounts [No change required]

4. Item Tax Template [Correct this section]
Accounting → Taxes → Item Tax Template
Split GST rates for Intra State & Inter State
You can name it “In GST 5%” & “Out GST 5%”
In GST 5% should be as follows.


Out GST 5% should be as follows.

Similarly update for other tax rates as well.

“Item Tax Template” list should look like this.

5. Tax Category [No Change required]

6. Purchase Taxes and Charges Template

7. Sales Taxes and Charges Template

8. Tax Rule

Create 2 tax rules for Sales

Intra State

Tax Type: Sales

Sales Tax Template: Output GST In-State

Tax Category: In-State
Inter State
Tax Type: Sales
Sales Tax Template: Output GST Out-State
Tax Category: Out-State

9. Set Item Tax template for Item or Group
Item Group
Stock → Items and Pricing → Item Group
Update Item Tax Section

Item

Stock → Items and Pricing → Item

Note: If the Tax template is already set at group level, no need to update the same at Item level. Do that only if there is a difference in tax.

Select the Item.

Select the “Tax” tab.

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