Manage Customers and income
Thanks for posting in the Community, @accounts362.
We have two default tax agencies for Cess in QuickBooks Online (QBO) India. These are Swachh Barat Cess and Krishi Kalyan Cess (see the screenshot below).
If your tax rate for Cess is under either of the two agencies above, you can select it in the Tax column when raising an invoice. If not, let's create a custom tax agency and rate to track this.
I'd still suggest consulting your accountant for further guidance on setting up the custom tax. This way, we can ensure your books are accurate in QuickBooks Online (QBO).
To create a custom tax agency:
- Go to Taxes from the left menu.
- Click Add Tax.
- Select Custom tax.
- Enter the Tax Name, Tax Agency Name, and other necessary information.
- Click Save.
For the detailed instructions, check out this article: Creating Custom Tax Agency.
To enter a new tax rate, click Add Tax again from the Taxes menu. Then, proceed with the steps below.
- Select Tax rate.
- Enter the name of your new tax rate like "Cess."
- Select the tax agency you recently created.
- Choose where this tax rate applies for sales or purchase transactions.
- Enter the tax rate and other necessary information.
- Click Save.
To learn more about the process above, visit this link: Creating Custom Tax Rate.
Once done, select the custom tax rate when creating an invoice. Here's what it looks like:
I recommend running GST or GSTR-1 reports to ensure your taxes are correct. Then, download and use them as your reference when filing your returns to the appropriate agencies.
Lastly, you can visit our resource hub to learn more about how GST impacts QBO users.
Just click the Reply button below if you need anything else. We're always here to help.
