# Exice and cst tax rate(Tax on tax)

**URL:** <https://forum.manager.io/t/exice-and-cst-tax-rate-tax-on-tax/9584>\
**Category:** Uncategorized\
**Created:** [May 17, 2017, 10:14am UTC](https://forum.manager.io/t/exice-and-cst-tax-rate-tax-on-tax/9584 "2017-05-17T10:14:41Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![Jagdish\_M](https://avatars.discourse-cdn.com/v4/letter/j/b9bd4f/32.png) [@Jagdish\_M](https://forum.manager.io/u/Jagdish_M)\
**Post date:** [May 17, 2017, 10:14am UTC](https://forum.manager.io/t/exice-and-cst-tax-rate-tax-on-tax/9584/1 "2017-05-17T10:14:41Z")

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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?

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**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\
**Post date:** [May 17, 2017, 10:17am UTC](https://forum.manager.io/t/exice-and-cst-tax-rate-tax-on-tax/9584/2 "2017-05-17T10:17:19Z")

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

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

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<div class="post-metadata">

**Author:** ![Jagdish\_M](https://avatars.discourse-cdn.com/v4/letter/j/b9bd4f/32.png) [@Jagdish\_M](https://forum.manager.io/u/Jagdish_M)\
**Post date:** [May 17, 2017, 10:33am UTC](https://forum.manager.io/t/exice-and-cst-tax-rate-tax-on-tax/9584/3 "2017-05-17T10:33:05Z")

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thanks of guidance. [Create and use tax codes | Manager](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?

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**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\
**Post date:** [May 17, 2017, 11:10am UTC](https://forum.manager.io/t/exice-and-cst-tax-rate-tax-on-tax/9584/4 "2017-05-17T11:10:34Z")

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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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**Author:** ![anoopchintu](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/anoopchintu/32/1067_2.png) [@anoopchintu](https://forum.manager.io/u/anoopchintu)\
**Post date:** [May 18, 2017, 4:43am UTC](https://forum.manager.io/t/exice-and-cst-tax-rate-tax-on-tax/9584/5 "2017-05-18T04:43:06Z")

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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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**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\
**Post date:** [January 18, 2023, 3:26pm UTC](https://forum.manager.io/t/exice-and-cst-tax-rate-tax-on-tax/9584/6 "2023-01-18T15:26:48Z")

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Closed on January 18, 2023, 3:26pm UTC