How to setup Good and Services Tax (GST)

For setting up QuickBooks for GST, please go through the following article:

Setting up QuickBooks for GST (India Only)


How to setup Value Added Tax (VAT), Service Tax and Central Sales Tax (CST)

QuickBooks by default supports VAT, Service Tax and CST. However, to use these taxes you will have to initialize Tax Center. To initialize Tax Center, follow the steps below:

  1. Click Tax on the left menu and click Set up tax.
  2. For setting up Service Tax (if you are not registered with Service Tax, simply click Next).

    1. Enter your Service Tax registration number
    2. Select your current tax period beginning month (usually April).
    3. Select your Tax Scheme (usually it will be Accrual, unless you are a professional service provider. If in doubt, please consult your accountant).
    4. Select your tax filing frequency for Service Tax.
    5. Select your tax payment frequency for Service Tax.
    6. Click Next.
  3. For setting up Value Added Tax or VAT (if you are not registered with VAT, simply click Next)

    1. Enter your VAT registration number.
    2. Select your current tax period beginning month.
    3. Select your Tax Scheme (usually it will be Accrual, unless you are a professional service provider. If in doubt, please consult with your accountant).
    4. Select your tax filing frequency for VAT.
    5. Select your tax payment frequency for VAT.
    6. Click Next.
  4. For setting up CST or Central Sales Tax, (if you are not registered for CST, click Set up to skip this dialog).

    1. Enter your CST registration number.
    2. Select your current tax period beginning month.
    3. Select your Tax Scheme (usually it will be Accrual, unless you are a professional service provider. If in doubt, please consult your accountant).
    4. Select your tax filing frequency for CST.
    5. Select your tax payment frequency for CST.
    6. Click Set up.
  • QuickBooks by default supports following rates for VAT, Service Tax and CST:

    VAT:

    •    14% on both Purchase and Sales Transactions
    •    4% on both Purchase and Sales Transactions
    •    5% on both Purchase and Sales Transactions

    Service Tax:

    •    12.36% on both Purchase and Sales Transactions

    CST

    •    2% on Sales Transactions

Once you have initialized the Tax Center, you can now add custom tax rates, custom tax agencies (other than VAT and Service Tax) and group tax through the New Tax button. For more information on how to do this, refer to the following links:

 

 

 

 

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