How to Use the Sales Tax Calculator

The Sales Tax Calculator is a versatile tool designed to help businesses and individuals calculate sales tax and determine taxable values for transactions. It supports calculations based on either the purchase amount or the total invoice value. Follow these steps to use the calculator:

Step 1: Choose Your Input

• Option 1: Purchase Amount

  • Input the base price of the product or service before tax in the “Purchase Amount (₹)” field.
  • For example:
    • If the purchase amount is ₹5000, enter 5000.

• Option 2: Total Invoice Value

  • Input the final amount including tax in the “Total Invoice Value (₹)” field.
  • For example:
    • If the total invoice value is ₹5350, enter 5350.

Step 2: Enter Sales Tax Rate

• Input the percentage rate of sales tax applicable in the region in the “Sales Tax Rate (%)” field.
• For example:
  • If the sales tax rate is 7%, enter 7.

Step 3: Calculate

• Click the “Calculate” button to generate the result.
• The calculator will display:
  • If you entered the Purchase Amount :
    • Sales Tax : The amount of tax added to the purchase.
    • Total Amount : The final amount payable, including sales tax.
  • If you entered the Total Invoice Value :
    • Taxable Value : The base price of the product or service before tax.
    • Sales Tax : The amount of tax included in the total invoice value.

Understanding the Results

• From Purchase Amount :

  • Example:
    • If the purchase amount is ₹5000 and the sales tax rate is 7%:
      • Sales Tax : 1005000×7​=₹350
      • Total Amount : $5000+350=₹5350$

• From Total Invoice Value :

  • Example:
    • If the total invoice value is ₹5350 and the sales tax rate is 7%:
      • Taxable Value : 1+1007​5350​≈₹5000
      • Sales Tax : $5350-5000=₹350$