Adding and Modifying Tax Rates in Keka PSA

Overview

This article provides a detailed explanation on how to add new tax rates as well as how to modify existing tax rates within your system. It covers the step-by-step process to ensure that you can efficiently manage tax settings, helping you keep your records accurate and compliant with current tax regulations.

Who Can Do This?

• PSA Admins
• Finance Admins
• Global Admins
• Users with view and manage tax permission
  

Pre-requisites

1. You must have billing privileges in the Keka PSA Finance section
2. Legal entities must be configured in the system
3. Ensure that tax rates are not already applied to existing invoices if you intend to delete or modify them

Why Are Tax Rates Important?

• Tax rates ensure legal compliance with regional and international tax regulations
• Applicable tax may vary based on business location, service type, or customer segment
• For example, India uses GST, a combination of Central and State tax components that must be managed accurately

Benefits of Keka PSA Tax Management

• Simplified Compliance: Configure tax rates to meet country-specific invoicing rules
• Flexible Configuration: Add or group tax types as per business needs
• Streamlined Invoicing: Automatically apply correct tax values while generating project invoices

Accessing the Tax Management Section

1. Go to the Projects section
2. Navigate to the Finance tab
3. Click on Settings
4. Select Taxes to view and manage tax configurations
   
   
    

Adding an Individual Tax Rate

1. Click on the +Add Tax button
2. Select Add Tax from the dropdown
   
   
    
3. In the Add Tax window, fill in the following:
   • Name: Example – Service Tax
   • Legal Entity: Choose from your configured legal entities
   • Tax Rate (%): Input the tax percentage (e.g., 18%)
4. Click Add to save
   
   
    

Adding a Group Tax Rate

1. Click on the +Add Tax button
2. Select Add Group Tax
   
   
3. In the Add Group Tax window:
   • Enter Name for the group (e.g., GST India)
   • Select the Legal Entity
   • Under Taxes, choose individual taxes to group or click +Add New Tax to create new ones
4. Click Add to save the group tax rate
   
   
    

Managing Existing Tax Rates

1. On the Tax Rates page, view all configured tax rates
2. Use the toggle button in the Status column to enable or disable taxes
3. Click the Edit icon in the Actions column to update rate name or percentage
4. To delete a tax rate, ensure it is not applied to any timesheets or invoices and then click Delete from the action menu
   
   
    

FAQs

Q: Can I apply multiple taxes to the same invoice?
A: Yes. Use the Group Tax feature to combine multiple individual taxes into a single line item

Q: What happens if I disable a tax rate?
A: It won’t be available for future use but will still appear on past invoices for audit consistency

Q: Can I delete a tax rate that’s in use?
A: No. You must first remove it from all associated records

Q: Are taxes automatically applied based on project location?
A: No. Taxes must be manually selected or configured per client/project

Q- If a tax is edited, will it affect the past invoices as well?
A- no. Only future invoices