The narration is in Urdu. This is a machine translation into English — click any timestamp to jump to that point in the video.
When you apply a discount, how is the tax calculated? We'll see that in this tutorial. We'll select any item and set its price to Rs 100.
This is so we can easily understand the calculation. Now you see its price is Rs 100, and according to 16% tax, Rs 16 tax is being calculated on it.
And the total amount is becoming 116. Now, we will halve its price, applying a 50% discount.
So, the price became 50, but the tax is still the same. And the total amount is 50 plus the tax that was on 100, which was 16%.
The total amount is being calculated with that. The reason for this is that according to the tax authority, the tax should be applied on your original price, the one before the discount.
We also follow the same method, where the tax amount is based on your original menu price, and after the discount, the tax amount is not calculated on the resulting item price.
Therefore, your tax will be the full amount, no matter how much of a discount you give to the guest.
If, for some reason, you want your tax to be on the discounted amount—as in this case, we gave a 50% discount and the price became 50...
...and according to 16% tax, the tax here should be 8—we can do its configuration on your special request, if you want to get it done like that.
The second method is where we give a fixed amount of discount. In that case, the tax doesn't matter because that discount amount is applied to the total bill amount.
It is calculated on your amount before tax, but it is obviously applied on the total that you have to take from the guest.
Transcribed and translated automatically
(gemini-2.5-pro, 2026-10-28).
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