---
title: Taxes
summary: Create tax structures such as GST 18% from one or more tax rows, and see the effective tax rate that Superwise uses on orders and bills.
order: 6
menu: Company settings > General > Taxes
route: /tax
who: People who have the View Taxes permission. Creating needs Add, changing needs Edit and deleting needs Delete.
---

A tax structure is a named set of taxes that you pick on purchase orders (PO), work orders, quotations and bills. One structure can have one row, for example GST 18%, or several rows, for example CGST 9% and SGST 9%. Superwise adds the rows and shows the effective tax rate.

## Before you start

- Know the name of each tax and its rate in percent.
- Know for each tax whether it applies to the basic amount only, or to the basic amount plus the taxes above it.

## How to create a tax structure

1. Open **Company settings** in the left menu, then **General**, then **Taxes**.
2. Click **Create** (mark 1 in the first picture).
3. In **Name** (mark 1 in the second picture), type the name of the structure, for example GST 18%.
4. Click **Add New Row** (mark 2). A new row appears.
5. In the column **Name** of the row, type the name of the tax, for example CGST. It needs at least 2 characters.
6. In the column **Value** (mark 3), type the rate in percent. Use a number from 0.01 to 99.99.
7. Use the switch in the column **On Basic Amount** (mark 4) to say how the rate is applied. See the next section.
8. Repeat steps 4 to 7 for each tax. Check **Effective Tax** at the bottom of the table.
9. Click **SAVE** (mark 5). A message says **Tax Saved Successfully!**

![The list of tax structures. The mark 1 is the button Create and the mark 2 is the three dots of a row.](../media/tax-list.png)

![The tax form. The mark 1 is Name, the mark 2 is Add New Row, the mark 3 is the field Value, the mark 4 is the switch On Basic Amount and the mark 5 is SAVE.](../media/tax-form.png)

To remove a row, click the red bin icon at the end of the row.

## What the switch On Basic Amount does

The switch decides which amount the rate is applied to.

- On: the rate is applied to the basic amount only.
- Off: the rate is applied to the basic amount plus the taxes of the rows above.

> **Example:** The basic amount is 1000. Row 1 has 10% with the switch on, so the tax is 100. Row 2 has 5% with the switch off, so the tax is 5% of 1100, which is 55. **Effective Tax** is 15.5 %.

## How to change a tax structure

1. In the list, click the three dots at the end of the row.
2. Choose **Edit**.
3. Change the name or the rows and click **SAVE**.

## How to delete a tax structure

1. In the list, click the three dots at the end of the row.
2. Choose **Delete**.
3. Read the question and click **Confirm**.

## What the columns mean

| Name | What it means |
| --- | --- |
| **Name** | The name of the tax structure. |
| **Created On** | The date the structure was created. |
| **Created By** | The user who created it. |
| **Value** | The effective tax rate in percent. |

## What the fields mean

| Name | What it means |
| --- | --- |
| **Name** (top) | The name of the whole structure. Required. It cannot be used twice. |
| **Name** (row) | The name of one tax in the structure. Required. At least 2 characters. Each row needs a different name. |
| **Value** | The rate of one tax in percent. Required. From 0.01 to 99.99. |
| **On Basic Amount** | On: the rate applies to the basic amount. Off: it applies to the basic amount plus the taxes above it. |
| **Effective Tax** | The total rate that results from all rows. Superwise calculates it for you. |

## Rules to know

- A structure needs a name and at least one row.
- Tax names must be different. The message is "Tax Name cannot be repeated".
- You cannot delete a structure that other records use. The message says which. Example: "Cannot delete Tax as it has Purchase Order linked to it."
  Records that use a tax include purchase orders, work orders, quotations, bills and resources.

## If something goes wrong

| What you see | What to do |
| --- | --- |
| Tax Name is Required | Type a name in **Name**. |
| Tax structure value is not between 0 and 100 on Row No: | Change the **Value** in the named rows. |
| Tax structure does not have minimum 2 Character on Row No: | Type a longer name in the named rows. |
| Duplicate Tax Structure Name(s) found on Row No: | Give each row a different name. |
| Tax Name cannot be repeated | Use another name for the structure. |
| Please add tax Structure | Click **Add New Row** and fill in one row. |
| Cannot delete Tax as it has ... linked to it. | The structure is in use. Keep it. |

## Related pages

- [Organizations](organization.md)
- [Company setup masters](index.md)