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DocumentationInExTax Engine

Tax Engine

The library of tax rules InEx can apply.

What is the Tax Engine screen?

Tax Engine is the library of tax rules InEx can apply to transactions — GST/IGST/CGST rates, Income Tax slabs, Reverse Charge Mechanism (RCM) rules, MAT, and Corporate Tax rates — each scoped by country, transaction type, and sender/receiver.

Why does this matter?

Tax rules change by country, transaction type, and counterparty. Keeping them as reusable rules means you set them up once and apply them consistently rather than calculating tax by hand on every transaction.

When would I use this?

  • Setting up your tax rules before you start recording taxable transactions
  • Adding a new tax rate or rule (e.g. a new RCM category)
  • Reviewing which rules are currently Active

Before you start

You need access to the Tax Engine screen under Finance → Inex, and a clear understanding of which rates legally apply to your business — check with your accountant if you're unsure.

Reading the stats

ItemMeaning
Total RulesAll tax rules configured.
ActiveRules currently in effect.
InclusiveRules configured as tax-inclusive (tax is part of the entered amount rather than added on top).

How to add a tax rule

  1. Open Tax Engine

    Go to Finance → Inex → Tax Engine.

  2. Click Add Tax Rule

    Click + Add Tax Rule.

  3. Define the rule

    Set the Tax Name, Tax ID, Country, Tax Type, Calculation Type, applicable Transaction type, Sender/Receiver scope, Tax Rate, Min/Max Amount, Priority, and whether it's Inclusive.

The tax rule table

Each row shows the rule's Tax Name, Tax ID, Country, Tax Type, Calc Type, Transaction scope, Sender, Receiver, Tax Rate, Min/Max Amount, Priority, Inclusive flag, and Status.

Example

Tax name
IGST 18% — IT Services Income (inter-state)
Country
IN
Rate
18%
Status
Active
Video tutorial coming soon
Working with Tax Engine
A walkthrough of the Tax Engine screen.
Coming soon
Show transcript

Transcript will be added when the video is published.

FAQs

Do I need to set up tax rules before recording any transactions?
Only if you plan to use the Calculate Tax toggle on Income/Expense forms or want figures to flow into the Tax-Ledger. You can record transactions without tax rules configured.
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