15) Navigate to Tax Managers Responsibility > Parties > Party Tax Profiles
16) Query for Party Type :: Third Party
Party Name :: X
Click on update tax profile
Ensure that the "Allow Tax Applicability" is not enabled
17) Click on Classifications Tab
For Fiscal Classification Type Code ::
Fiscal Classification Code :: NO TAX
Fiscal Classification Name :: NO TAX
Effective From ::
Click on Apply
18) Navigate to Tax Managers Responsibility > Advanced Setup Options > Tax Determining
Factor Sets
Click on Create
Enter the following values
Tax Determining Factor Set ::
Name ::
Ledger ::
Regime Code ::
Determining Factor Class :: Party Fiscal Classification
Class Qualifier :: Ship from Party
Determining Factor Name ::
Click on Apply
19) Navigate to Tax Managers Responsibility > Advanced Setup Options > Tax Condition Sets
Click on Create
Enter values for
Tax Condition Set ::
Name ::
Determining Factor Set::
Country Name:: United States
Click on Continue
Enter value for
Value/From Range ::NO TAX
Click on Finish
20) Navigate to Tax Managers Responsibility >Tax Configuration > Tax Rules
Create a "Determine Tax Applicability" Rule using the previously created Tax Determining
Factor Set & Tax Condition Set
Ensure that when you create this rule set the applicability to "Not Applicable"
Save
Bounce the Apache Server
Create a new invoice to the supplier 'X'
Click "Calculate Tax" no tax gets calculated
Please note that ...the above steps are done so that system does not calculate tax on a particular
party (supplier) automatically....but still if user needs to have tax for this invoice...they can create
a manual
tax line
http://orafinappssetups.blogspot.in/2013/01/how-to-setup-tax-exemption-inebusiness.html