Error While defining Inclusive taxes

Question:

While defining inclusive taxes the following Error is displayed:-
"You must complete the accounting setup for inclusive taxes before attempting to create inclusive taxes."What is the cause for the Error?

Solution:

In R12.1 releases Inclusive Tax feature is added to India Localization functionality. For this feature to be enabled there is field called "Account Inclusive Tax" is included in the TDS Year Info form which should be checked if user want to define the Inclusive Tax. To implement the solution please perform the following:-

1. Navigate to India Local Payable

2. India Localization > Setup > Others >TDS Year Info

3. Enable the field 'Account Inclusive Tax' is given the value 'Yes'. Save changes

Then go to the taxes screen and create .