Hello Vishal,
Please check the help center document : Configuration: Tax Classification for Free-Text Items
It is explained how you can maintain the values in the table along with the example.
Example
- Tax Classification US, Product Category PC Hardware:
Field Name | Value |
|---|---|
Product Category | PC Hardware |
Tax Rate Type | Standard |
Tax Exemption Reason | blank |
Taxable Service Point | blank |
Country | US |
Region | All |
Tax Type | Sales and US Tax |
Result:
Susan Ladier is based in the US. She creates a shopping cart with an item from the product category, PC Hardware. The item does not have a product ID. The created purchase order contains this item with a tax rate in accordance with the classification above.
So Basically, for the product category PC hardware, country US, system will apply sales and us tax at the standard rate.
I hope this will clarify your concerns.
Regards,
Harshal