diff --git a/erpnext/accounts/doctype/shipping_rule/shipping_rule.py b/erpnext/accounts/doctype/shipping_rule/shipping_rule.py
index 792e7d2..7e51299 100644
--- a/erpnext/accounts/doctype/shipping_rule/shipping_rule.py
+++ b/erpnext/accounts/doctype/shipping_rule/shipping_rule.py
@@ -71,8 +71,7 @@
 		if doc.currency != doc.company_currency:
 			shipping_amount = flt(shipping_amount / doc.conversion_rate, 2)
 
-		if shipping_amount:
-			self.add_shipping_rule_to_tax_table(doc, shipping_amount)
+		self.add_shipping_rule_to_tax_table(doc, shipping_amount)
 
 	def get_shipping_amount_from_rules(self, value):
 		for condition in self.get("conditions"):
diff --git a/erpnext/controllers/taxes_and_totals.py b/erpnext/controllers/taxes_and_totals.py
index a1bb667..d362cdd 100644
--- a/erpnext/controllers/taxes_and_totals.py
+++ b/erpnext/controllers/taxes_and_totals.py
@@ -37,6 +37,8 @@
 			self.set_discount_amount()
 			self.apply_discount_amount()
 
+		self.calculate_shipping_charges()
+
 		if self.doc.doctype in ["Sales Invoice", "Purchase Invoice"]:
 			self.calculate_total_advance()
 
@@ -50,7 +52,6 @@
 		self.initialize_taxes()
 		self.determine_exclusive_rate()
 		self.calculate_net_total()
-		self.calculate_shipping_charges()
 		self.calculate_taxes()
 		self.manipulate_grand_total_for_inclusive_tax()
 		self.calculate_totals()
@@ -276,6 +277,8 @@
 			shipping_rule = frappe.get_doc("Shipping Rule", self.doc.shipping_rule)
 			shipping_rule.apply(self.doc)
 
+			self._calculate()
+
 	def calculate_taxes(self):
 		rounding_adjustment_computed = self.doc.get('is_consolidated') and self.doc.get('rounding_adjustment')
 		if not rounding_adjustment_computed:
diff --git a/erpnext/public/js/controllers/taxes_and_totals.js b/erpnext/public/js/controllers/taxes_and_totals.js
index ae0e2a3..9fec43b 100644
--- a/erpnext/public/js/controllers/taxes_and_totals.js
+++ b/erpnext/public/js/controllers/taxes_and_totals.js
@@ -39,6 +39,8 @@
 		this._calculate_taxes_and_totals();
 		this.calculate_discount_amount();
 
+		this.calculate_shipping_charges();
+
 		// Advance calculation applicable to Sales /Purchase Invoice
 		if(in_list(["Sales Invoice", "POS Invoice", "Purchase Invoice"], this.frm.doc.doctype)
 			&& this.frm.doc.docstatus < 2 && !this.frm.doc.is_return) {
@@ -81,7 +83,6 @@
 		this.initialize_taxes();
 		this.determine_exclusive_rate();
 		this.calculate_net_total();
-		this.calculate_shipping_charges();
 		this.calculate_taxes();
 		this.manipulate_grand_total_for_inclusive_tax();
 		this.calculate_totals();
@@ -275,6 +276,7 @@
 		frappe.model.round_floats_in(this.frm.doc, ["total", "base_total", "net_total", "base_net_total"]);
 		if (frappe.meta.get_docfield(this.frm.doc.doctype, "shipping_rule", this.frm.doc.name)) {
 			this.shipping_rule();
+			this._calculate_taxes_and_totals();
 		}
 	}
 
diff --git a/erpnext/selling/doctype/sales_order/test_sales_order.py b/erpnext/selling/doctype/sales_order/test_sales_order.py
index b528479..86a0882 100644
--- a/erpnext/selling/doctype/sales_order/test_sales_order.py
+++ b/erpnext/selling/doctype/sales_order/test_sales_order.py
@@ -1477,6 +1477,28 @@
 		self.assertEqual(so.items[0].work_order_qty, wo.produced_qty)
 		self.assertEqual(mr.status, "Manufactured")
 
+	def test_sales_order_with_shipping_rule(self):
+		from erpnext.accounts.doctype.shipping_rule.test_shipping_rule import create_shipping_rule
+		shipping_rule = create_shipping_rule(shipping_rule_type = "Selling", shipping_rule_name = "Shipping Rule - Sales Invoice Test")
+		sales_order = make_sales_order(do_not_save=True)
+		sales_order.shipping_rule = shipping_rule.name
+
+		sales_order.items[0].qty = 1
+		sales_order.save()
+		self.assertEqual(sales_order.taxes[0].tax_amount, 50)
+
+		sales_order.items[0].qty = 2
+		sales_order.save()
+		self.assertEqual(sales_order.taxes[0].tax_amount, 100)
+
+		sales_order.items[0].qty = 3
+		sales_order.save()
+		self.assertEqual(sales_order.taxes[0].tax_amount, 200)
+
+		sales_order.items[0].qty = 21
+		sales_order.save()
+		self.assertEqual(sales_order.taxes[0].tax_amount, 0)
+
 def automatically_fetch_payment_terms(enable=1):
 	accounts_settings = frappe.get_doc("Accounts Settings")
 	accounts_settings.automatically_fetch_payment_terms = enable