The meals are taxable while the tips are not. Can I record both together, without applying tax on the tip?

The meals are taxable while the tips are not. Can I record both together, without applying tax on the tip?


Let’s say you meet a client for lunch and would like to record that expense in Zoho Expense. You might want to apply tax only on the food and not on the tip you paid. In this case, you can split the expense into taxable and non-taxable portions by itemizing the expense.

To itemise:

  1. Go to Expenses on the left sidebar.
  2. Click + New Expense in the top right side of the page.
  3. Enter the expense Date and select a Merchant.
  4. Click the Itemize option in the right corner of the Amount field of the expense form. The form expands to include expenses as items.
  5. Enter the meal expense as your first item and apply tax on it.
  6. Add the tip you paid as your second item and associate it with a different category, if necessary. The expense total will be calculated automatically, with tax applied only to the meal expense.
  7. Associate the expense with the customer and make it billable, if required.
  8. Add it to an existing report or to a new report.
  9. Click Save and Close.

    • Related Articles

    • What are pre-tax and post-tax deductions in Zoho Payroll?

      Pre-Tax Deductions Post-Tax Deductions Definition Amounts deducted before calculating income tax Amounts deducted after calculating income tax Impact on Income Reduces net taxable income and lowers income tax Does not affect net taxable income ...

    • Can I use Zoho Payroll without providing my TAN?

      Yes. You can use Zoho Payroll without providing your Tax Collection and Deduction Account Number (TAN). However, your Permanent Account Number (PAN) is mandatory.

    • Zoho CRM Record Locking: Configuration and Usage

      Certain business scenarios demand records in modules within your organization to be restricted from edits or deletion once they reach a certain stage in your sales process or satisfy some specific condition. Record locking is a configuration that ...

    • Zoho CRM Customizing Record's Detail Page

      A record detail page is a storehouse of all information about the record. It contains primary details like name, company profile, billing address, or shipping address and associated details called the related list, like notes, campaigns, open and ...

    • How can I configure tax deductor details for my organisation?

      You can configure your tax deductor details by following these steps. Go to Settings > Taxes. Select the tax deductor’s name from the drop down. The tax deductor must be an employee of your organisation. The tax deductor’s father’s name will be ...