Exice and cst tax rate(Tax on tax)

Dear Supporter in purchase invoice how may i add invoice like that…

material price =52625
+12.5%(excise) =6578.125(12.5% of 52625)

+3%(CST) =197.34(3% of 6578.125)

                   Total=59400.465

so how may i add these tax format in invoice?

You could try creating a custom tax code - read this Guide

https://www.manager.io/guides/best-practices/tax-codes

Unsure about adding tax to a tax amount, you might have to make it .00385 on to the material price

thanks of guidance. https://www.manager.io/guides/best-practices/tax-codes

but all the tax applied on base price not on tax on tax so how may i do these?

Instead of the 3% being on the 12.5%, convert the 3% to be on the cost.

Standard calculation
(10,000 + 12.5% = 10,000 + 1,250 = 11,250) + ((1250 @ 3%) = 37.50) = 11,287.50

Adjusted calculation
(10,000 + 12.5% = 10,000 + 1.250 = 11.250) + ((10,000 @ 0.375%) = 37.50) = 11287.50
So compound tax rate would be
Excise 12.5% (.125)
CST .375 (.00375) - in place of the 3.0% (.030) tax on tax.

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In India, all these taxes charged on you for a purchase is considered as your cost. So, we need not show separate additions to the purchase invoice as tax. 12.50% of ED and 3.00% of CST (I believe it would be against Form C).
What we do here is to put the total of the supplier invoice amount (including ED & CST) into our purchase invoice.

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