We have a major issue with a key ZOHO feature that is not allowing us to use the tool fully . All taxes are calculated on the discounted rate by ZOHO , but in Tamil Nadu the hotel industry luxury tax calculation is different .

In Tamil Nadu Luxury taxes are calculated on Declared rate/Published rate/Rack rate .

Example .
Published rate is Rs.2000/Day
If room is charged at full rate then
Luxury tax = 12.5% = 250
Service tax = 9% =180

If a discount is provided the calculation has to be as follows
Room rate = 2000
Discount = 500
Nett = 1500
LT(on room rate) = 12.5% on 2000 = 250 This is correct
ST(on Nett) = 9%@1500 = 135

The way ZOHO calculates :
Room rate = 2000
Discount = 500
Nett = 1500
LT(on Nett) = 12.5@1500 = 187.5(THIS IS WRONG)
ST(on Nett) = 9%@1500 = 135

This wrong calculation is not allowing us to use the tool properly.

Request you to take this on high priority and help resolve as this is a showstopper for us to proceed with rolling out across our chain in TN.

Feature request : Add a flag in the tax setup to denote if tax should be calculated on discounted price or non discounted price . Modify invoice calculation logic accordingly .

Best Regards,
Vignesh