Zoho procurement logo Help Docs

Tax Settings

You can configure tax related preferences from the Tax Settings page. In this help document, you’ll learn about the tax preferences available in Zoho Procurement.

Tax Registration Number

Tax Registration Number (TRN) is a unique code assigned by a government’s tax authority to track taxpayers and administer tax laws. It is specific to your company’s regulatory requirements. For example, EIN in the US, GSTIN in India, VAT number in the UK, and the like.

To add the Tax Registration Number of your company:

  • Go to Settings in the top right corner of the page.
  • Select Taxes under Taxes & Compliance.
  • In the Taxes pane, select Tax Settings.
  • Select the applicable TAX ID from the dropdown in the Tax Registration Number section.
  • Enter your company’s Tax Registration Number in the text box next to the dropdown.
  • Click Save.

TDS

Tax Deducted at Source (TDS) is applied to transactions when you deduct tax from the amount that must be paid to vendors and then send it to the government. To enable TDS:

  • Go to Settings in the top right corner of the page.
  • Select Taxes under Taxes & Compliance.
  • In the Taxes pane, select Tax Settings.
  • In the TDS section, check Enable TDS box.
  • If you want to override the system generated TDS amount in transactions, check Enable TDS Override for purchases transactions.
    • In the Apply TDS Override dropdown, select At Transaction Level or At Item Level.
  • Choose if you want to Round Off TDS At Transaction Level or At Line Item Level.
  • Click Save.

TDS will be enabled for your organization, and the TDS Rates section will be added to the Taxes pane where you can manage the TDS rates required for your transactions.

Read our help document on TDS Rates to learn how to manage TDS rates.

Reverse Charge

Usually, vendors pay taxes to the government for selling goods or services. Reverse Charge is a mechanism by which the customer is liable to pay the tax directly to the government for goods or services that fall under Reverse Charge as specified by your government. To enable Reverse Charge:

  • Go to Settings on the top right corner of the page.
  • Select Taxes under Taxes & Compliance.
  • In the Taxes pane, select Tax Settings.
  • In the Reverse Charge section, check Enable Reverse Charge in Purchase transactions record reverse charge for bills, recurring bills, and vendor credits.
  • Click Save.

Apply Reverse Charge to Transactions

Once you’ve enabled Reverse Charge, here’s how you can apply it to transactions:

  • Go to required module on the left sidebar.
  • If you’re creating a new transaction, click + New in the rop right corner and fill in the required details.
  • If you want to apply Reverse Charge to an existing transaction, select the required transaction and click Edit.
  • Check This transaction is applicable for reverse charge.
  • Click Save.

Disable Reverse Charge

To disable Reverse Charge for your organization:

  • Go to Settings on the top right corner of the page.
  • Select Taxes under Taxes & Compliance.
  • In the Taxes pane, select Tax Settings.
  • In the Reverse Charge section, uncheck Enable Reverse Charge in Purchase transactions.
  • Click Save.

Tax Override in Transactions

You can manually edit the total tax amount that is automatically calculated by Zoho Procurement based on the tax applied to each item. Here’s how:

  • Go to Settings in the top right corner of the page.
  • Select Taxes under Taxes & Compliance.
  • In the Taxes pane, select Tax Settings.
  • In the Tax Override in Transactions section, check Enable tax override for purchase transactions.
  • In the Apply Tax Override dropdown, select At Transaction Level or At Item Level.
  • Click Save.

Override the Tax in Transactions

If Tax Override in Transactions is enabled for your organization, here’s how you can override the system-applied taxes in transactions:

  • Go to required module on the left sidebar.
  • If you’re creating a new transaction, click + New in the rop right corner and fill in the required details.
  • If you want to override the tax applied to an existing transaction, select the required transaction and click Edit.
  • If tax override preference is set at the item level, click the Edit icon next to Tax Amount in the Tax column of the required item.
  • if the override preference is set at transaction level, click the Edit icon next to Total Tax Amount in the Total section.
  • Enter the required tax amount and click Update. The system-applied tax will be overwritten with the new tax.
  • Click Save to save the transaction.
ON THIS PAGE