How to Configure Tax Rates in CrmLeaf
All editions. Core feature - no add-on required. Electronic invoicing requires the E-Invoice add-on module, and India GST-aware accounting sync requires the Tally add-on module.
Availability: All editions. Core feature - no add-on required. Electronic invoicing requires the E-Invoice add-on module, and India GST-aware accounting sync requires the Tally add-on module.
Overview
Tax rates in CrmLeaf are named rates that users apply per line item on the documents they raise. You define the rates once for the account, and they become available on estimates, proposals, invoices, orders, purchase orders and bills.
Set the rates up before your team raises priced documents, so that totals are correct from the first one.
How It Works
You create a named tax rate for the account. When a user adds a line item to a document, they select the tax rate that applies to that line, and the document total is calculated from the lines.
Create named rate → Rate available on documents → Applied per line item → Totals calculated → Reported
- Tax rates are named, so users choose a rate by its label rather than typing a percentage.
- A rate is applied per line item, not to the whole document, so one document can mix rates.
- The same rate set is used across sales and purchasing documents.
- Client records hold their own tax registration and electronic-invoicing details, which are separate from the rates you define here.
- Payroll statutory deductions are configured in payroll settings, not in tax settings.
Who Can Use This Feature?
Administrator
- Create, edit and remove the account's named tax rates.
- Decide which rates the business uses, so line-level selection stays simple for users.
- Coordinate tax configuration with invoice settings and any accounting integration.
This functionality is available only to Administrators. Users select an existing rate on a document line but cannot create rates.
Prerequisites
- The company profile is complete.
- Currencies are configured, because tax is applied to priced lines.
- You know the rates your business is required to charge, and their names.
For Administrators
Step 1: List the rates your business needs
What to do: Write down each rate you charge or pay, with the exact name your finance team uses. Keep the list short - users pick from it on every line item.
What to verify: Every rate on your list is one your business actually uses.
Step 2: Create the tax rates
What to do: Add each tax rate with its name and percentage, then Save.
What to verify: Each saved rate appears in the tax list with the correct name and percentage.
Step 3: Test on a document
What to do: Create a draft estimate or invoice with two lines and apply a different rate to each. Check the totals.
What to verify: Each line shows the rate you selected and the document total reflects the mixed rates.
Step 4: Check purchasing documents too
What to do: If your account has the Purchase module, confirm the rates are available when raising a purchase order or a bill.
What to verify: The rates appear on purchasing documents as well as sales documents.
Step 5: Align with invoice settings and integrations
What to do: Review invoice settings for numbering and the PDF template so tax appears as your clients expect. If you use the E-Invoice or Tally add-on modules, confirm your rate names match what those integrations require.
What to verify: An invoice PDF shows tax correctly, and any integration accepts the document.
Field and Option Reference
| Field / Option | Description | Required |
|---|---|---|
| Tax name | The label users select on a document line item. | Yes |
| Rate | The percentage applied to the line. | Yes |
Expected Result
Your named tax rates exist for the account and can be selected on line items across estimates, proposals, invoices, orders and purchasing documents, and document totals calculate correctly for mixed rates.
Important Notes
- Menu names and their position can differ between product editions and can be customised for your account, so your sidebar may not match these paths exactly. Use Search or your Quick Access items if you cannot find a screen.
- Tax is applied per line item. A single document can carry more than one rate.
- Tax rates are held at Company level and shared by all Organizations.
- Changing a rate does not restate documents that have already been raised. Create a new rate rather than editing an existing one when a statutory rate changes, so historical documents stay intelligible.
- Payroll statutory items such as TDS, PF, ESI and professional tax are configured in payroll settings, not here.
- Client tax registration and electronic-invoicing details live on the client record.
Common Scenarios
Example: mixed rates on one invoice. A supplier invoices goods at one rate and a service at another. Both rates exist for the account, so the user selects the correct rate on each line and the invoice total is right without a manual adjustment.
Example: a statutory rate change. A rate increases from a set date. The Administrator adds a new named rate rather than editing the old one, so documents raised before the change keep their original rate and audit trails remain clear.
Troubleshooting
| Issue | Possible Cause | Resolution |
|---|---|---|
| A rate is not available on a document line | The rate has not been created in tax settings | Add the rate, then re-open the document. |
| A document total is lower than expected | No tax rate was selected on one or more lines | Open the document and apply the rate to every line that needs it. |
| An accounting integration rejects a document | The tax naming does not match what the integration requires | Align your rate names with the integration's requirements. |
| Historical documents changed unexpectedly | An existing rate was edited instead of a new one being created | Create new rates for rate changes and leave historical rates untouched. |
| Tax settings are not available | You are not signed in as an Administrator | Ask an Administrator to make the change. |
Frequently Asked Questions
Can I apply two taxes to the same line?
Are the same rates used for purchasing?
Named tax rates are applied per line item across documents, including purchasing documents when the Purchase module is enabled.
Where is payroll tax configured?
In payroll settings. Statutory components such as TDS, PF, ESI and professional tax are part of the Payroll add-on module.
Can a user create a tax rate?
No. Users select from existing rates; only Administrators create them.
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