Tax on another tax amount

Use Case: Need to calculate tax on the previous tax amount and not on the item amount.
For example, we have 5 items and Service Charge is calculated on the Net Total of the 5 items. Additionally, we need to calculate 5% VAT on the Service Charge of the Items and not on the Net Total of the Invoice. In this case, you need to follow the following steps:

1. In Sales Invoice, under the Sales Taxes and Charges section you need to set the tax calculation. In row 1, select the Type as **\