diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.json b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.json
index 25ac8ff..c1801eb 100755
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.json
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.json
@@ -2375,4 +2375,4 @@
  "sort_field": "modified",
  "sort_order": "DESC",
  "title_field": "title"
-}
+}
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/purchase_taxes_and_charges/purchase_taxes_and_charges.json b/erpnext/accounts/doctype/purchase_taxes_and_charges/purchase_taxes_and_charges.json
index a00184b..9e43ca0 100644
--- a/erpnext/accounts/doctype/purchase_taxes_and_charges/purchase_taxes_and_charges.json
+++ b/erpnext/accounts/doctype/purchase_taxes_and_charges/purchase_taxes_and_charges.json
@@ -504,7 +504,7 @@
  "is_submittable": 0, 
  "issingle": 0, 
  "istable": 1, 
- "modified": "2015-08-19 12:46:32.687299", 
+ "modified": "2015-08-28 02:57:08.769473", 
  "modified_by": "Administrator", 
  "module": "Accounts", 
  "name": "Purchase Taxes and Charges", 
diff --git a/erpnext/accounts/doctype/sales_taxes_and_charges/sales_taxes_and_charges.json b/erpnext/accounts/doctype/sales_taxes_and_charges/sales_taxes_and_charges.json
index 29534d8..a0d8df4 100644
--- a/erpnext/accounts/doctype/sales_taxes_and_charges/sales_taxes_and_charges.json
+++ b/erpnext/accounts/doctype/sales_taxes_and_charges/sales_taxes_and_charges.json
@@ -456,7 +456,7 @@
  "is_submittable": 0, 
  "issingle": 0, 
  "istable": 1, 
- "modified": "2015-08-19 12:46:33.165519", 
+ "modified": "2015-08-28 02:57:00.766305", 
  "modified_by": "Administrator", 
  "module": "Accounts", 
  "name": "Sales Taxes and Charges", 
diff --git a/erpnext/accounts/doctype/sales_taxes_and_charges_template/test_records.json b/erpnext/accounts/doctype/sales_taxes_and_charges_template/test_records.json
index 656d29c..69dbd8e 100644
--- a/erpnext/accounts/doctype/sales_taxes_and_charges_template/test_records.json
+++ b/erpnext/accounts/doctype/sales_taxes_and_charges_template/test_records.json
@@ -153,5 +153,95 @@
     "territory": "_Test Territory Rest Of The World"
    }
   ]
+ },
+ {
+  "company": "_Test Company",
+  "doctype": "Sales Taxes and Charges Template",
+  "taxes": [
+   {
+    "account_head": "_Test Account VAT - _TC",
+    "charge_type": "On Net Total",
+    "description": "VAT",
+    "doctype": "Sales Taxes and Charges",
+    "parentfield": "taxes",
+    "rate": 12
+   },
+   {
+    "account_head": "_Test Account Service Tax - _TC",
+    "charge_type": "On Net Total",
+    "description": "Service Tax",
+    "doctype": "Sales Taxes and Charges",
+    "parentfield": "taxes",
+    "rate": 4
+   }
+  ],
+  "title": "_Test Sales Taxes and Charges Template 1",
+  "territories": [
+   {
+    "doctype": "Applicable Territory",
+    "parentfield": "territories",
+    "territory": "_Test Territory Rest Of The World"
+   }
+  ]
+ },
+ {
+  "company": "_Test Company",
+  "doctype": "Sales Taxes and Charges Template",
+  "taxes": [
+   {
+    "account_head": "_Test Account VAT - _TC",
+    "charge_type": "On Net Total",
+    "description": "VAT",
+    "doctype": "Sales Taxes and Charges",
+    "parentfield": "taxes",
+    "rate": 12
+   },
+   {
+    "account_head": "_Test Account Service Tax - _TC",
+    "charge_type": "On Net Total",
+    "description": "Service Tax",
+    "doctype": "Sales Taxes and Charges",
+    "parentfield": "taxes",
+    "rate": 4
+   }
+  ],
+  "title": "_Test Sales Taxes and Charges Template 2",
+  "territories": [
+   {
+    "doctype": "Applicable Territory",
+    "parentfield": "territories",
+    "territory": "_Test Territory Rest Of The World"
+   }
+  ]
+ },
+ {
+	"doctype" : "Sales Taxes and Charges Template",
+	"title": "_Test Tax 1",
+	"company": "_Test Company",
+	"taxes":[{
+		"charge_type": "Actual",
+		"account_head": "Sales Expenses - _TC",
+		"cost_center": "Main - _TC",
+		"description": "Test Shopping cart taxes with Tax Rule",
+		"tax_amount": 1000
+	}],
+	"territories":[{
+		"territory" : "All Territories"
+	}]
+ },
+ {
+	"doctype" : "Sales Taxes and Charges Template",
+	"title": "_Test Tax 2",
+	"company": "_Test Company",
+	"taxes":[{
+		"charge_type": "Actual",
+		"account_head": "Sales Expenses - _TC",
+		"cost_center": "Main - _TC",
+		"description": "Test Shopping cart taxes with Tax Rule",
+		"tax_amount": 200
+	}],
+	"territories":[{
+		"territory" : "All Territories"
+	}]
  }
 ]
diff --git a/erpnext/shopping_cart/doctype/shopping_cart_taxes_and_charges_master/__init__.py b/erpnext/accounts/doctype/tax_rule/__init__.py
similarity index 100%
rename from erpnext/shopping_cart/doctype/shopping_cart_taxes_and_charges_master/__init__.py
rename to erpnext/accounts/doctype/tax_rule/__init__.py
diff --git a/erpnext/accounts/doctype/tax_rule/tax_rule.js b/erpnext/accounts/doctype/tax_rule/tax_rule.js
new file mode 100644
index 0000000..4b059dc
--- /dev/null
+++ b/erpnext/accounts/doctype/tax_rule/tax_rule.js
@@ -0,0 +1,60 @@
+// Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
+// License: GNU General Public License v3. See license.txt
+
+cur_frm.add_fetch("customer", "customer_group", "customer_group" );
+cur_frm.add_fetch("supplier", "supplier_type", "supplier_type" );
+
+cur_frm.toggle_reqd("sales_tax_template", cur_frm.doc.tax_type=="Sales");
+cur_frm.toggle_reqd("purchase_tax_template", cur_frm.doc.tax_type=="Purchase");
+
+
+frappe.ui.form.on("Tax Rule", "onload", function(frm) {
+	if(frm.doc.__islocal){
+		frm.set_value("use_for_shopping_cart", 1);
+	}
+})
+
+frappe.ui.form.on("Tax Rule", "use_for_shopping_cart", function(frm) {
+	if(!frm.doc.use_for_shopping_cart && (frappe.get_list("Tax Rule", {"use_for_shopping_cart":1}).length == 0)){
+		frappe.model.get_value("Shopping Cart Settings", "Shopping Cart Settings", "enabled", function(docfield) {
+			if(docfield.enabled){
+				frm.set_value("use_for_shopping_cart", 1);
+				frappe.throw(__("Shopping Cart is enabled"));
+			}
+		});
+	}
+})
+
+frappe.ui.form.on("Tax Rule", "customer", function(frm) {
+	frappe.call({
+		method:"erpnext.accounts.doctype.tax_rule.tax_rule.get_party_details",
+		args: {
+			"party": frm.doc.customer,
+			"party_type": "customer"
+		},
+		callback: function(r) {
+			if(!r.exc) {
+				$.each(r.message, function(k, v) {
+					frm.set_value(k, v);
+				});
+			}
+		}
+	});
+});
+
+frappe.ui.form.on("Tax Rule", "supplier", function(frm) {
+	frappe.call({
+		method:"erpnext.accounts.doctype.tax_rule.tax_rule.get_party_details",
+		args: {
+			"party": frm.doc.supplier,
+			"party_type": "supplier"
+		},
+		callback: function(r) {
+			if(!r.exc) {
+				$.each(r.message, function(k, v) {
+					frm.set_value(k, v);
+				});
+			}
+		}
+	});
+});
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/tax_rule/tax_rule.json b/erpnext/accounts/doctype/tax_rule/tax_rule.json
new file mode 100644
index 0000000..60011dd
--- /dev/null
+++ b/erpnext/accounts/doctype/tax_rule/tax_rule.json
@@ -0,0 +1,615 @@
+{
+ "allow_copy": 0, 
+ "allow_import": 1, 
+ "allow_rename": 0, 
+ "autoname": "TR.####", 
+ "creation": "2015-08-07 02:33:52.670866", 
+ "custom": 0, 
+ "docstatus": 0, 
+ "doctype": "DocType", 
+ "document_type": "Setup", 
+ "fields": [
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "default": "Sales", 
+   "fieldname": "tax_type", 
+   "fieldtype": "Select", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Tax Type", 
+   "no_copy": 0, 
+   "options": "Sales\nPurchase", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "use_for_shopping_cart", 
+   "fieldtype": "Check", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Use for Shopping Cart", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "column_break_1", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "depends_on": "eval:doc.tax_type==\"Sales\"", 
+   "fieldname": "sales_tax_template", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Sales Tax Template", 
+   "no_copy": 0, 
+   "options": "Sales Taxes and Charges Template", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "depends_on": "eval:doc.tax_type==\"Purchase\"", 
+   "fieldname": "purchase_tax_template", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Purchase Tax Template", 
+   "no_copy": 0, 
+   "options": "Purchase Taxes and Charges Template", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "filters", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Filters", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "depends_on": "eval:doc.tax_type==\"Sales\"", 
+   "fieldname": "customer", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Customer", 
+   "no_copy": 0, 
+   "options": "Customer", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "depends_on": "eval:doc.tax_type==\"Purchase\"", 
+   "fieldname": "supplier", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Supplier", 
+   "no_copy": 0, 
+   "options": "Supplier", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "billing_city", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Billing City", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "billing_state", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Billing State", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "billing_country", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Billing Country", 
+   "no_copy": 0, 
+   "options": "Country", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "column_break_2", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "depends_on": "eval:doc.tax_type==\"Sales\"", 
+   "fieldname": "customer_group", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Customer Group", 
+   "no_copy": 0, 
+   "options": "Customer Group", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "depends_on": "eval:doc.tax_type==\"Purchase\"", 
+   "fieldname": "supplier_type", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Supplier Type", 
+   "no_copy": 0, 
+   "options": "Supplier Type", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "shipping_city", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Shipping City", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "shipping_state", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Shipping State", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "shipping_country", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Shipping Country", 
+   "no_copy": 0, 
+   "options": "Country", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "section_break_4", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Validity", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "from_date", 
+   "fieldtype": "Date", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "From Date", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
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+   "unique": 0
+  }, 
+  {
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+   "fieldname": "column_break_7", 
+   "fieldtype": "Column Break", 
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+   "report_hide": 0, 
+   "reqd": 0, 
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+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "to_date", 
+   "fieldtype": "Date", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "To Date", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "section_break_6", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "default": "1", 
+   "fieldname": "priority", 
+   "fieldtype": "Int", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Priority", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "column_break_20", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "company", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Company", 
+   "no_copy": 0, 
+   "options": "Company", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }
+ ], 
+ "hide_heading": 0, 
+ "hide_toolbar": 0, 
+ "in_create": 0, 
+ "in_dialog": 0, 
+ "is_submittable": 0, 
+ "issingle": 0, 
+ "istable": 0, 
+ "modified": "2015-09-15 12:29:34.435839", 
+ "modified_by": "Administrator", 
+ "module": "Accounts", 
+ "name": "Tax Rule", 
+ "name_case": "", 
+ "owner": "Administrator", 
+ "permissions": [
+  {
+   "amend": 0, 
+   "apply_user_permissions": 0, 
+   "cancel": 0, 
+   "create": 1, 
+   "delete": 1, 
+   "email": 1, 
+   "export": 1, 
+   "if_owner": 0, 
+   "import": 0, 
+   "permlevel": 0, 
+   "print": 1, 
+   "read": 1, 
+   "report": 1, 
+   "role": "Administrator", 
+   "set_user_permissions": 0, 
+   "share": 1, 
+   "submit": 0, 
+   "write": 1
+  }
+ ], 
+ "read_only": 0, 
+ "read_only_onload": 0, 
+ "sort_field": "modified", 
+ "sort_order": "DESC"
+}
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/tax_rule/tax_rule.py b/erpnext/accounts/doctype/tax_rule/tax_rule.py
new file mode 100644
index 0000000..0a9bb11
--- /dev/null
+++ b/erpnext/accounts/doctype/tax_rule/tax_rule.py
@@ -0,0 +1,134 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe import _
+from frappe.model.document import Document
+from frappe.utils import cstr
+
+class IncorrectCustomerGroup(frappe.ValidationError): pass
+class IncorrectSupplierType(frappe.ValidationError): pass
+class ConflictingTaxRule(frappe.ValidationError): pass
+
+class TaxRule(Document):
+	def validate(self):
+		self.validate_tax_template()
+		self.validate_customer_group()
+		self.validate_supplier_type()
+		self.validate_date()
+		self.validate_filters()
+
+	def validate_tax_template(self):
+		if self.tax_type== "Sales":
+			self.purchase_tax_template = self.supplier = self.supplier_type= None
+		else:
+			self.sales_tax_template= self.customer = self.customer_group= None
+		
+		if not (self.sales_tax_template or self.purchase_tax_template):
+			frappe.throw(_("Tax Template is mandatory."))
+
+	def validate_customer_group(self):
+		if self.customer and self.customer_group:
+			if not frappe.db.get_value("Customer", self.customer, "customer_group") == self.customer_group:
+				frappe.throw(_("Customer {0} does not belong to customer group {1}"). \
+					format(self.customer, self.customer_group), IncorrectCustomerGroup)
+	
+	def validate_supplier_type(self):
+		if self.supplier and self.supplier_type:
+			if not frappe.db.get_value("Supplier", self.supplier, "supplier_type") == self.supplier_type:
+				frappe.throw(_("Supplier {0} does not belong to Supplier Type {1}"). \
+					format(self.supplier, self.supplier_type), IncorrectSupplierType)
+
+	def validate_date(self):
+		if self.from_date and self.to_date and self.from_date > self.to_date:
+			frappe.throw(_("From Date cannot be greater than To Date"))
+
+	def validate_filters(self):
+		filters = {
+			"tax_type":			self.tax_type,
+			"customer": 		self.customer,
+			"customer_group": 	self.customer_group,
+			"supplier":			self.supplier,
+			"supplier_type":	self.supplier_type,
+			"billing_city":		self.billing_city,
+			"billing_state": 	self.billing_state,
+			"billing_country":	self.billing_country,
+			"shipping_city":	self.shipping_city,
+			"shipping_state":	self.shipping_state,
+			"shipping_country":	self.shipping_country,
+			"company":			self.company
+		}
+		
+		conds=""
+		for d in filters:
+			if conds:
+				conds += " and "
+			conds += """ifnull({0}, '') = '{1}'""".format(d, frappe.db.escape(cstr(filters[d])))
+		
+		if self.from_date and self.to_date:
+			conds += """ and ((from_date > '{from_date}' and from_date < '{to_date}') or
+					(to_date > '{from_date}' and to_date < '{to_date}') or
+					('{from_date}' > from_date and '{from_date}' < to_date) or
+					('{from_date}' = from_date and '{to_date}' = to_date))""".format(from_date=self.from_date, to_date=self.to_date)
+					
+		elif self.from_date and not self.to_date:
+			conds += """ and to_date > '{from_date}'""".format(from_date = self.from_date)
+
+		elif self.to_date and not self.from_date:
+			conds += """ and from_date < '{to_date}'""".format(to_date = self.to_date)
+		
+		tax_rule = frappe.db.sql("select name, priority \
+			from `tabTax Rule` where {0} and name != '{1}'".format(conds, self.name), as_dict=1) 
+		
+		if tax_rule:
+			if tax_rule[0].priority == self.priority:
+				frappe.throw(_("Tax Rule Conflicts with {0}".format(tax_rule[0].name)), ConflictingTaxRule)
+
+@frappe.whitelist()
+def get_party_details(party, party_type, args=None):
+	out = {}
+	if args:
+		billing_filters=	{"name": args.get("billing_address")}
+		shipping_filters=	{"name": args.get("shipping_address")}
+	else:
+		billing_filters=	{party_type: party, "is_primary_address": 1}
+		shipping_filters=	{party_type:party, "is_shipping_address": 1}
+		
+	billing_address=	frappe.get_all("Address", fields=["city", "state", "country"], filters= billing_filters)
+	shipping_address=	frappe.get_all("Address", fields=["city", "state", "country"], filters= shipping_filters)
+	
+	if billing_address:
+		out["billing_city"]= billing_address[0].city
+		out["billing_state"]= billing_address[0].state
+		out["billing_country"]= billing_address[0].country
+
+	if shipping_address:
+		out["shipping_city"]= shipping_address[0].city
+		out["shipping_state"]= shipping_address[0].state
+		out["shipping_country"]= shipping_address[0].country
+		
+	return out
+
+def get_tax_template(posting_date, args):
+	"""Get matching tax rule"""
+	args = frappe._dict(args)
+	conditions = []
+
+	for key, value in args.iteritems():
+		conditions.append("ifnull({0}, '') in ('', '{1}')".format(key, frappe.db.escape(cstr(value))))
+
+	matching = frappe.db.sql("""select * from `tabTax Rule`
+		where {0}""".format(" and ".join(conditions)), as_dict = True)
+		
+	if not matching:
+		return None
+		
+	for rule in matching:
+		rule.no_of_keys_matched = 0
+		for key in args:
+			if rule.get(key): rule.no_of_keys_matched += 1
+			
+	rule = sorted(matching, lambda b, a: cmp(a.no_of_keys_matched, b.no_of_keys_matched) or cmp(a.priority, b.priority))[0]
+	return rule.sales_tax_template or rule.purchase_tax_template
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/tax_rule/test_records.json b/erpnext/accounts/doctype/tax_rule/test_records.json
new file mode 100644
index 0000000..0913fba
--- /dev/null
+++ b/erpnext/accounts/doctype/tax_rule/test_records.json
@@ -0,0 +1,28 @@
+[
+	{
+		"doctype": "Tax Rule",
+		"tax_type" : "Sales",
+		"sales_tax_template": "_Test Tax 1",
+		"use_for_shopping_cart": 1,
+		"billing_city": "_Test City",
+		"billing_state": "Test State",
+		"billing_country": "India",
+		"shipping_city": "_Test City",
+		"shipping_country": "India",
+		"priority": 1,
+		"company": "_Test Company"
+	},	
+	{
+		"doctype": "Tax Rule",
+		"tax_type" : "Sales",
+		"sales_tax_template": "_Test Tax 2",
+		"use_for_shopping_cart": 0,
+		"billing_city": "_Test City",
+		"billing_country": "India",
+		"shipping_city": "_Test City",
+		"shipping_state": "Test State",
+		"shipping_country": "India",
+		"priority": 2,
+		"company": "_Test Company"
+	}
+]
\ No newline at end of file
diff --git a/erpnext/accounts/doctype/tax_rule/test_tax_rule.py b/erpnext/accounts/doctype/tax_rule/test_tax_rule.py
new file mode 100644
index 0000000..3e175fa
--- /dev/null
+++ b/erpnext/accounts/doctype/tax_rule/test_tax_rule.py
@@ -0,0 +1,141 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+from __future__ import unicode_literals
+
+import frappe
+import unittest
+from erpnext.accounts.doctype.tax_rule.tax_rule import IncorrectCustomerGroup, IncorrectSupplierType, ConflictingTaxRule, get_tax_template
+
+test_records = frappe.get_test_records('Tax Rule')
+
+class TestTaxRule(unittest.TestCase):
+	def setUp(self):
+		frappe.db.sql("delete from `tabTax Rule` where use_for_shopping_cart <> 1")
+		
+	def test_customer_group(self):
+		tax_rule = make_tax_rule(customer= "_Test Customer", customer_group= "_Test Customer Group 1",
+			sales_tax_template = "_Test Sales Taxes and Charges Template")
+		self.assertRaises(IncorrectCustomerGroup, tax_rule.save)
+		
+	def test_supplier_type(self):
+		tax_rule = make_tax_rule(tax_type= "Purchase", supplier= "_Test Supplier", supplier_type= "_Test Supplier Type 1",
+			purchase_tax_template = "_Test Purchase Taxes and Charges Template")
+		self.assertRaises(IncorrectSupplierType, tax_rule.save)
+		
+	def test_conflict(self):		
+		tax_rule1 = make_tax_rule(customer= "_Test Customer",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", priority = 1)
+		tax_rule1.save()
+
+		tax_rule2 = make_tax_rule(customer= "_Test Customer",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", priority = 1)
+		
+		self.assertRaises(ConflictingTaxRule, tax_rule2.save)
+
+	def test_conflict_with_non_overlapping_dates(self):
+		tax_rule1 = make_tax_rule(customer= "_Test Customer",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", priority = 1, from_date = "2015-01-01")
+		tax_rule1.save()
+
+		tax_rule2 = make_tax_rule(customer= "_Test Customer",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", priority = 1, to_date = "2013-01-01")
+		
+		tax_rule2.save()
+		self.assertTrue(tax_rule2.name)
+
+	def test_conflict_with_overlapping_dates(self):		
+		tax_rule1 = make_tax_rule(customer= "_Test Customer",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", priority = 1, from_date = "2015-01-01", to_date = "2015-01-05")
+		tax_rule1.save()
+
+		tax_rule2 = make_tax_rule(customer= "_Test Customer",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", priority = 1, from_date = "2015-01-03", to_date = "2015-01-09")
+		
+		self.assertRaises(ConflictingTaxRule, tax_rule2.save)
+		
+	def test_tax_template(self):
+		tax_rule = make_tax_rule()
+		self.assertEquals(tax_rule.purchase_tax_template, None)
+		
+		
+	def test_select_tax_rule_based_on_customer(self):
+		make_tax_rule(customer= "_Test Customer",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", save=1)
+
+		make_tax_rule(customer= "_Test Customer 1",
+			sales_tax_template = "_Test Sales Taxes and Charges Template 1", save=1)
+
+		make_tax_rule(customer= "_Test Customer 2",
+			sales_tax_template = "_Test Sales Taxes and Charges Template 2", save=1)
+			
+		self.assertEquals(get_tax_template("2015-01-01", {"customer":"_Test Customer 2"}), 
+			"_Test Sales Taxes and Charges Template 2")
+
+	def test_select_tax_rule_based_on_better_match(self):
+		make_tax_rule(customer= "_Test Customer", billing_city = "Test City", billing_state = "Test State",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", save=1)
+
+		make_tax_rule(customer= "_Test Customer",  billing_city = "Test City1", billing_state = "Test State",
+			sales_tax_template = "_Test Sales Taxes and Charges Template 1", save=1)
+			
+		self.assertEquals(get_tax_template("2015-01-01", {"customer":"_Test Customer", "billing_city": "Test City", "billing_state": "Test State"}), 
+			"_Test Sales Taxes and Charges Template")
+		
+	def test_select_tax_rule_based_on_state_match(self):
+		make_tax_rule(customer= "_Test Customer", shipping_state = "Test State", 
+			sales_tax_template = "_Test Sales Taxes and Charges Template", save=1)
+
+		make_tax_rule(customer= "_Test Customer", shipping_state = "Test State12", 
+			sales_tax_template = "_Test Sales Taxes and Charges Template 1", priority=2, save=1)
+		
+		self.assertEquals(get_tax_template("2015-01-01", {"customer":"_Test Customer", "shipping_state": "Test State"}), 
+			"_Test Sales Taxes and Charges Template")
+
+	def test_select_tax_rule_based_on_better_priority(self):
+		make_tax_rule(customer= "_Test Customer", billing_city = "Test City",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", priority=1, save=1)
+
+		make_tax_rule(customer= "_Test Customer", billing_city = "Test City",
+			sales_tax_template = "_Test Sales Taxes and Charges Template 1", priority=2, save=1)
+			
+		self.assertEquals(get_tax_template("2015-01-01", {"customer":"_Test Customer", "billing_city": "Test City"}), 
+			"_Test Sales Taxes and Charges Template 1")
+
+	def test_select_tax_rule_based_cross_matching_keys(self):
+		make_tax_rule(customer= "_Test Customer", billing_city = "Test City", 
+			sales_tax_template = "_Test Sales Taxes and Charges Template", save=1)
+
+		make_tax_rule(customer= "_Test Customer 1", billing_city = "Test City 1",
+			sales_tax_template = "_Test Sales Taxes and Charges Template 1", save=1)
+			
+		self.assertEquals(get_tax_template("2015-01-01", {"customer":"_Test Customer", "billing_city": "Test City 1"}), 
+			None)
+
+	def test_select_tax_rule_based_cross_partially_keys(self):
+		make_tax_rule(customer= "_Test Customer", billing_city = "Test City",
+			sales_tax_template = "_Test Sales Taxes and Charges Template", save=1)
+
+		make_tax_rule(billing_city = "Test City 1",
+			sales_tax_template = "_Test Sales Taxes and Charges Template 1", save=1)
+			
+		self.assertEquals(get_tax_template("2015-01-01", {"customer":"_Test Customer", "billing_city": "Test City 1"}), 
+			"_Test Sales Taxes and Charges Template 1")
+		
+
+def make_tax_rule(**args):
+	args = frappe._dict(args)
+	
+	tax_rule = frappe.new_doc("Tax Rule")
+	
+	for key, val in args.iteritems():
+		if key != "save":
+			tax_rule.set(key, val)
+	
+	tax_rule.company = args.company or "_Test Company"
+	
+	if args.save:
+		tax_rule.insert()
+	
+	return tax_rule
+	
\ No newline at end of file
diff --git a/erpnext/accounts/party.py b/erpnext/accounts/party.py
index 4f49bc0..a589a69 100644
--- a/erpnext/accounts/party.py
+++ b/erpnext/accounts/party.py
@@ -43,6 +43,7 @@
 	set_contact_details(out, party, party_type)
 	set_other_values(out, party, party_type)
 	set_price_list(out, party, party_type, price_list)
+	out["taxes_and_charges"] = set_taxes(party.name, party_type, posting_date, company, out.customer_group, out.supplier_type)
 
 	if not out.get("currency"):
 		out["currency"] = currency
@@ -99,7 +100,7 @@
 		out[f] = party.get(f)
 
 	# fields prepended with default in Customer doctype
-	for f in ['currency', 'taxes_and_charges'] \
+	for f in ['currency'] \
 		+ (['sales_partner', 'commission_rate'] if party_type=="Customer" else []):
 		if party.get("default_" + f):
 			out[f] = party.get("default_" + f)
@@ -274,4 +275,31 @@
 				msgprint(_("Note: Due / Reference Date exceeds allowed customer credit days by {0} day(s)")
 					.format(date_diff(due_date, default_due_date)))
 			else:
-				frappe.throw(_("Due / Reference Date cannot be after {0}").format(formatdate(default_due_date)))
\ No newline at end of file
+				frappe.throw(_("Due / Reference Date cannot be after {0}").format(formatdate(default_due_date)))
+				
+@frappe.whitelist()
+def set_taxes(party, party_type, posting_date, company, customer_group=None, supplier_type=None, 
+	billing_address=None, shipping_address=None, use_for_shopping_cart=None):
+	from erpnext.accounts.doctype.tax_rule.tax_rule import get_tax_template, get_party_details
+	args = {
+		party_type: 		party,
+		"customer_group":	customer_group,
+		"supplier_type":	supplier_type,
+		"company":			company
+	}
+	
+	if billing_address or shipping_address:
+		args.update(get_party_details(party, party_type, {"billing_address": billing_address, \
+			"shipping_address": shipping_address }))
+	else:
+		args.update(get_party_details(party, party_type))
+	
+	if party_type=="Customer":
+		args.update({"tax_type": "Sales"})
+	else:
+		args.update({"tax_type": "Purchase"})
+		
+	if use_for_shopping_cart:
+		args.update({"use_for_shopping_cart": use_for_shopping_cart})
+		
+	return get_tax_template(posting_date, args)
\ No newline at end of file
diff --git a/erpnext/config/accounts.py b/erpnext/config/accounts.py
index f32aeed..71a2d70 100644
--- a/erpnext/config/accounts.py
+++ b/erpnext/config/accounts.py
@@ -108,6 +108,11 @@
 				},
 				{
 					"type": "doctype",
+					"name": "Tax Rule",
+					"description": _("Tax Rule for transactions.")
+				},
+				{
+					"type": "doctype",
 					"name": "Sales Taxes and Charges Template",
 					"description": _("Tax template for selling transactions.")
 				},
diff --git a/erpnext/patches/v5_8/tax_rule.py b/erpnext/patches/v5_8/tax_rule.py
new file mode 100644
index 0000000..b710ddc
--- /dev/null
+++ b/erpnext/patches/v5_8/tax_rule.py
@@ -0,0 +1,27 @@
+# Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+import frappe
+
+def execute():
+	customers = frappe.db.sql("""select name, default_taxes_and_charges from tabCustomer where 
+		ifnull(default_taxes_and_charges, '') != '' """, as_dict=1)
+		
+	for d in customers:
+		tr = frappe.new_doc("Tax Rule")
+		tr.tax_type = "Sales"
+		tr.customer = d.name
+		tr.sales_tax_template = d.default_taxes_and_charges
+		tr.save()
+		
+
+	suppliers = frappe.db.sql("""select name, default_taxes_and_charges from tabSupplier where 
+		ifnull(default_taxes_and_charges, '') != '' """, as_dict=1)
+		
+	for d in suppliers:
+		tr = frappe.new_doc("Tax Rule")
+		tr.tax_type = "Purchase"
+		tr.supplier = d.name
+		tr.purchase_tax_template = d.default_taxes_and_charges
+		tr.save()
\ No newline at end of file
diff --git a/erpnext/public/js/utils/party.js b/erpnext/public/js/utils/party.js
index 919225f..1a86b2b 100644
--- a/erpnext/public/js/utils/party.js
+++ b/erpnext/public/js/utils/party.js
@@ -20,6 +20,7 @@
 				price_list: frm.doc.buying_price_list
 			};
 		}
+		args.posting_date = frm.doc.transaction_date;
 	}
 	if(!args) return;
 
@@ -42,6 +43,7 @@
 
 erpnext.utils.get_address_display = function(frm, address_field, display_field) {
 	if(frm.updating_party_details) return;
+	
 	if(!address_field) {
 		if(frm.doc.customer) {
 			address_field = "customer_address";
@@ -49,14 +51,32 @@
 			address_field = "supplier_address";
 		} else return;
 	}
+ 
 	if(!display_field) display_field = "address_display";
 	if(frm.doc[address_field]) {
 		frappe.call({
 			method: "erpnext.utilities.doctype.address.address.get_address_display",
 			args: {"address_dict": frm.doc[address_field] },
 			callback: function(r) {
-				if(r.message)
+				if(r.message){
 					frm.set_value(display_field, r.message)
+				}
+				frappe.call({
+					method: "erpnext.accounts.party.set_taxes",
+					args: {
+						"party": frm.doc.customer || frm.doc.supplier,
+						"party_type": (frm.doc.customer ? "Customer" : "Supplier"),
+						"posting_date": frm.doc.posting_date || frm.doc.transaction_date,
+						"company": frm.doc.company,
+						"billing_address": ((frm.doc.customer) ? (frm.doc.customer_address) : (frm.doc.supplier_address)),
+						"shipping_address": frm.doc.shipping_address_name
+					},
+					callback: function(r) {
+						if(r.message){
+							frm.set_value("taxes_and_charges", r.message)
+						}
+					}
+				});
 			}
 		})
 	}
diff --git a/erpnext/setup/doctype/customer_group/test_records.json b/erpnext/setup/doctype/customer_group/test_records.json
index 14d815c..cc3f87e 100644
--- a/erpnext/setup/doctype/customer_group/test_records.json
+++ b/erpnext/setup/doctype/customer_group/test_records.json
@@ -4,5 +4,11 @@
   "doctype": "Customer Group",
   "is_group": "No",
   "parent_customer_group": "All Customer Groups"
+ },
+ {
+  "customer_group_name": "_Test Customer Group 1",
+  "doctype": "Customer Group",
+  "is_group": "No",
+  "parent_customer_group": "All Customer Groups"
  }
 ]
diff --git a/erpnext/shopping_cart/cart.py b/erpnext/shopping_cart/cart.py
index cfba98b..30f4aba 100644
--- a/erpnext/shopping_cart/cart.py
+++ b/erpnext/shopping_cart/cart.py
@@ -266,12 +266,18 @@
 
 def set_taxes(quotation, cart_settings, billing_territory):
 	"""set taxes based on billing territory"""
-	quotation.taxes_and_charges = cart_settings.get_tax_master(billing_territory)
-
-	# clear table
+	from erpnext.accounts.party import set_taxes
+	
+	customer_group = frappe.db.get_value("Customer", quotation.customer, "customer_group")
+	
+	quotation.taxes_and_charges = set_taxes(quotation.customer, "Customer", \
+		quotation.transaction_date, quotation.company, customer_group, None, \
+		quotation.customer_address, quotation.shipping_address_name, 1)
+#
+# 	# clear table
 	quotation.set("taxes", [])
-
-	# append taxes
+#
+# 	# append taxes
 	quotation.append_taxes_from_master()
 
 def get_lead_or_customer():
diff --git a/erpnext/shopping_cart/doctype/shopping_cart_settings/shopping_cart_settings.json b/erpnext/shopping_cart/doctype/shopping_cart_settings/shopping_cart_settings.json
index 818550e..881ff4e 100644
--- a/erpnext/shopping_cart/doctype/shopping_cart_settings/shopping_cart_settings.json
+++ b/erpnext/shopping_cart/doctype/shopping_cart_settings/shopping_cart_settings.json
@@ -204,6 +204,27 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "fieldname": "column_break_10", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
    "fieldname": "shipping_rules", 
    "fieldtype": "Table", 
    "hidden": 0, 
@@ -221,48 +242,6 @@
    "search_index": 0, 
    "set_only_once": 0, 
    "unique": 0
-  }, 
-  {
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "fieldname": "column_break_10", 
-   "fieldtype": "Column Break", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "in_filter": 0, 
-   "in_list_view": 0, 
-   "no_copy": 0, 
-   "permlevel": 0, 
-   "print_hide": 0, 
-   "read_only": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "fieldname": "sales_taxes_and_charges_masters", 
-   "fieldtype": "Table", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "in_filter": 0, 
-   "in_list_view": 0, 
-   "label": "Taxes and Charges", 
-   "no_copy": 0, 
-   "options": "Shopping Cart Taxes and Charges Master", 
-   "permlevel": 0, 
-   "print_hide": 0, 
-   "read_only": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
   }
  ], 
  "hide_heading": 0, 
@@ -274,7 +253,7 @@
  "is_submittable": 0, 
  "issingle": 1, 
  "istable": 0, 
- "modified": "2015-02-05 05:11:46.714019", 
+ "modified": "2015-09-11 19:03:54.750937", 
  "modified_by": "Administrator", 
  "module": "Shopping Cart", 
  "name": "Shopping Cart Settings", 
diff --git a/erpnext/shopping_cart/doctype/shopping_cart_settings/shopping_cart_settings.py b/erpnext/shopping_cart/doctype/shopping_cart_settings/shopping_cart_settings.py
index 8fbf4a4..da7d27a 100644
--- a/erpnext/shopping_cart/doctype/shopping_cart_settings/shopping_cart_settings.py
+++ b/erpnext/shopping_cart/doctype/shopping_cart_settings/shopping_cart_settings.py
@@ -20,9 +20,9 @@
 	def validate(self):
 		if self.enabled:
 			self.validate_price_lists()
-			self.validate_tax_masters()
 			self.validate_exchange_rates_exist()
-
+			self.validate_tax_rule()
+			
 	def validate_overlapping_territories(self, parentfield, fieldname):
 		# for displaying message
 		doctype = self.meta.get_field(parentfield).options
@@ -48,20 +48,14 @@
 			msgprint(_("Please specify a Price List which is valid for Territory") +
 				": " + self.default_territory, raise_exception=ShoppingCartSetupError)
 
-	def validate_tax_masters(self):
-		self.validate_overlapping_territories("sales_taxes_and_charges_masters",
-			"sales_taxes_and_charges_master")
-
 	def get_territory_name_map(self, parentfield, fieldname):
 		territory_name_map = {}
 
 		# entries in table
 		names = [doc.get(fieldname) for doc in self.get(parentfield)]
-
 		if names:
 			# for condition in territory check
 			parenttype = frappe.get_meta(self.meta.get_options(parentfield)).get_options(fieldname)
-
 			# to validate territory overlap
 			# make a map of territory: [list of names]
 			# if list against each territory has more than one element, raise exception
@@ -75,7 +69,6 @@
 
 				if len(territory_name_map[territory]) > 1:
 					territory_name_map[territory].sort(key=lambda val: names.index(val))
-
 		return territory_name_map
 
 	def validate_exchange_rates_exist(self):
@@ -112,7 +105,6 @@
 	def get_name_from_territory(self, territory, parentfield, fieldname):
 		name = None
 		territory_name_map = self.get_territory_name_map(parentfield, fieldname)
-
 		if territory_name_map.get(territory):
 			name = territory_name_map.get(territory)
 		else:
@@ -131,7 +123,11 @@
 				"price_lists", "selling_price_list")
 
 		return price_list and price_list[0] or None
-
+		
+	def validate_tax_rule(self):
+		if not frappe.db.get_value("Tax Rule", {"use_for_shopping_cart" : 1}, "name"):
+			frappe.throw(frappe._("Set Tax Rule for shopping cart"), ShoppingCartSetupError)
+			
 	def get_tax_master(self, billing_territory):
 		tax_master = self.get_name_from_territory(billing_territory, "sales_taxes_and_charges_masters",
 			"sales_taxes_and_charges_master")
@@ -167,52 +163,4 @@
 def check_shopping_cart_enabled():
 	if not get_shopping_cart_settings().enabled:
 		frappe.throw(_("You need to enable Shopping Cart"), ShoppingCartSetupError)
-
-def apply_shopping_cart_settings(quotation, method):
-	"""Called via a validate hook on Quotation"""
-	from erpnext.shopping_cart import get_party
-	if quotation.order_type != "Shopping Cart":
-		return
-
-	quotation.billing_territory = (get_territory_from_address(quotation.customer_address)
-		or get_party(quotation.contact_email).territory or get_default_territory())
-	quotation.shipping_territory = (get_territory_from_address(quotation.shipping_address_name)
-		or get_party(quotation.contact_email).territory or get_default_territory())
-
-	set_price_list(quotation)
-	set_taxes_and_charges(quotation)
-	quotation.calculate_taxes_and_totals()
-	set_shipping_rule(quotation)
-
-def set_price_list(quotation):
-	previous_selling_price_list = quotation.selling_price_list
-	quotation.selling_price_list = get_shopping_cart_settings().get_price_list(quotation.billing_territory)
-
-	if not quotation.selling_price_list:
-		quotation.selling_price_list = get_shopping_cart_settings().get_price_list(get_default_territory())
-
-	if previous_selling_price_list != quotation.selling_price_list:
-		quotation.price_list_currency = quotation.currency = quotation.plc_conversion_rate = quotation.conversion_rate = None
-		for d in quotation.get("items"):
-			d.price_list_rate = d.discount_percentage = d.rate = d.amount = None
-
-	quotation.set_price_list_and_item_details()
-
-def set_taxes_and_charges(quotation):
-	previous_taxes_and_charges = quotation.taxes_and_charges
-	quotation.taxes_and_charges = get_shopping_cart_settings().get_tax_master(quotation.billing_territory)
-
-	if previous_taxes_and_charges != quotation.taxes_and_charges:
-		quotation.set_other_charges()
-
-def set_shipping_rule(quotation):
-	shipping_rules = get_shopping_cart_settings().get_shipping_rules(quotation.shipping_territory)
-	if not shipping_rules:
-		quotation.remove_shipping_charge()
-		return
-
-	if quotation.shipping_rule not in shipping_rules:
-		quotation.remove_shipping_charge()
-		quotation.shipping_rule = shipping_rules[0]
-
-	quotation.apply_shipping_rule()
+		
diff --git a/erpnext/shopping_cart/doctype/shopping_cart_settings/test_shopping_cart_settings.py b/erpnext/shopping_cart/doctype/shopping_cart_settings/test_shopping_cart_settings.py
index 46cbfdf..b18cece 100644
--- a/erpnext/shopping_cart/doctype/shopping_cart_settings/test_shopping_cart_settings.py
+++ b/erpnext/shopping_cart/doctype/shopping_cart_settings/test_shopping_cart_settings.py
@@ -12,7 +12,6 @@
 	def setUp(self):
 		frappe.db.sql("""delete from `tabSingles` where doctype="Shipping Cart Settings" """)
 		frappe.db.sql("""delete from `tabShopping Cart Price List`""")
-		frappe.db.sql("""delete from `tabShopping Cart Taxes and Charges Master`""")
 		frappe.db.sql("""delete from `tabShopping Cart Shipping Rule`""")
 		
 	def get_cart_settings(self):
@@ -43,28 +42,6 @@
 			
 		return cart_settings
 		
-	def test_taxes_territory_overlap(self):
-		cart_settings = self.get_cart_settings()
-		
-		def _add_tax_master(tax_master):
-			cart_settings.append("sales_taxes_and_charges_masters", {
-				"doctype": "Shopping Cart Taxes and Charges Master",
-				"sales_taxes_and_charges_master": tax_master
-			})
-		
-		for tax_master in ("_Test Sales Taxes and Charges Template", "_Test India Tax Master"):
-			_add_tax_master(tax_master)
-			
-		controller = cart_settings
-		controller.validate_overlapping_territories("sales_taxes_and_charges_masters",
-			"sales_taxes_and_charges_master")
-			
-		_add_tax_master("_Test Sales Taxes and Charges Template - Rest of the World")
-		
-		controller = cart_settings
-		self.assertRaises(ShoppingCartSetupError, controller.validate_overlapping_territories,
-			"sales_taxes_and_charges_masters", "sales_taxes_and_charges_master")
-		
 	def test_exchange_rate_exists(self):
 		frappe.db.sql("""delete from `tabCurrency Exchange`""")
 		
@@ -77,3 +54,12 @@
 		frappe.get_doc(currency_exchange_records[0]).insert()
 		controller.validate_exchange_rates_exist()
 		
+	def test_tax_rule_validation(self):
+		frappe.db.sql("update `tabTax Rule` set use_for_shopping_cart = 0")
+		frappe.db.commit()
+		
+		cart_settings = self.get_cart_settings()
+		cart_settings.enabled = 1 
+		if not frappe.db.get_value("Tax Rule", {"use_for_shopping_cart": 1}, "name"):
+			self.assertRaises(ShoppingCartSetupError, cart_settings.validate_tax_rule)
+			
diff --git a/erpnext/shopping_cart/doctype/shopping_cart_taxes_and_charges_master/shopping_cart_taxes_and_charges_master.json b/erpnext/shopping_cart/doctype/shopping_cart_taxes_and_charges_master/shopping_cart_taxes_and_charges_master.json
deleted file mode 100644
index e15dcab..0000000
--- a/erpnext/shopping_cart/doctype/shopping_cart_taxes_and_charges_master/shopping_cart_taxes_and_charges_master.json
+++ /dev/null
@@ -1,49 +0,0 @@
-{
- "allow_copy": 0, 
- "allow_import": 0, 
- "allow_rename": 0, 
- "creation": "2013-06-20 16:57:03", 
- "custom": 0, 
- "docstatus": 0, 
- "doctype": "DocType", 
- "fields": [
-  {
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "fieldname": "sales_taxes_and_charges_master", 
-   "fieldtype": "Link", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "in_filter": 0, 
-   "in_list_view": 1, 
-   "label": "Tax Master", 
-   "no_copy": 0, 
-   "options": "Sales Taxes and Charges Template", 
-   "permlevel": 0, 
-   "print_hide": 0, 
-   "read_only": 0, 
-   "report_hide": 0, 
-   "reqd": 1, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }
- ], 
- "hide_heading": 0, 
- "hide_toolbar": 0, 
- "idx": 1, 
- "in_create": 0, 
- "in_dialog": 0, 
- "is_submittable": 0, 
- "issingle": 0, 
- "istable": 1, 
- "modified": "2013-12-20 19:30:47", 
- "modified_by": "Administrator", 
- "module": "Shopping Cart", 
- "name": "Shopping Cart Taxes and Charges Master", 
- "owner": "Administrator", 
- "permissions": [], 
- "read_only": 0, 
- "read_only_onload": 0
-}
\ No newline at end of file
diff --git a/erpnext/shopping_cart/doctype/shopping_cart_taxes_and_charges_master/shopping_cart_taxes_and_charges_master.py b/erpnext/shopping_cart/doctype/shopping_cart_taxes_and_charges_master/shopping_cart_taxes_and_charges_master.py
deleted file mode 100644
index d2ec545..0000000
--- a/erpnext/shopping_cart/doctype/shopping_cart_taxes_and_charges_master/shopping_cart_taxes_and_charges_master.py
+++ /dev/null
@@ -1,12 +0,0 @@
-# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
-# License: GNU General Public License v3. See license.txt
-
-# For license information, please see license.txt
-
-from __future__ import unicode_literals
-import frappe
-
-from frappe.model.document import Document
-
-class ShoppingCartTaxesandChargesMaster(Document):
-	pass
diff --git a/erpnext/shopping_cart/test_shopping_cart.py b/erpnext/shopping_cart/test_shopping_cart.py
index 1873b81..bd0b138 100644
--- a/erpnext/shopping_cart/test_shopping_cart.py
+++ b/erpnext/shopping_cart/test_shopping_cart.py
@@ -4,7 +4,7 @@
 from __future__ import unicode_literals
 import unittest
 import frappe
-from erpnext.shopping_cart import get_quotation, set_item_in_cart
+from erpnext.shopping_cart import get_quotation, set_item_in_cart, get_party
 
 class TestShoppingCart(unittest.TestCase):
 	"""
@@ -109,6 +109,53 @@
 		quotation = self.test_get_cart_lead()
 		self.assertEquals(quotation.net_total, 0)
 		self.assertEquals(len(quotation.get("items")), 0)
+		
+		
+	def test_taxe_rule(self):	
+		self.login_as_customer()
+		quotation = self.create_quotation()
+		
+		from erpnext.accounts.party import set_taxes
+
+		tax_rule_master = set_taxes(quotation.customer, "Customer", \
+			quotation.transaction_date, quotation.company, None, None, \
+			quotation.customer_address, quotation.shipping_address_name, 1)
+
+		self.assertEquals(quotation.taxes_and_charges, tax_rule_master)
+		self.assertEquals(quotation.total_taxes_and_charges, 1000.0)
+		
+		self.remove_test_quotation(quotation)
+	
+	def create_quotation(self):
+		quotation = frappe.new_doc("Quotation")
+		
+		values = {
+			"doctype": "Quotation",
+			"quotation_to": "Customer",
+			"order_type": "Shopping Cart",
+			"customer": get_party(frappe.session.user).name,
+			"docstatus": 0,
+			"contact_email": frappe.session.user,
+			"selling_price_list": "_Test Price List Rest of the World",
+			"currency": "USD",
+			"taxes_and_charges" : "_Test Tax 1",
+			"items": [{
+				"item_code": "_Test Item",
+				"qty": 1
+			}],
+			"taxes": frappe.get_doc("Sales Taxes and Charges Template", "_Test Tax 1").taxes,
+			"company": "_Test Company"
+		}
+		
+		quotation.update(values)
+		
+		quotation.insert(ignore_permissions=True)
+		
+		return quotation
+	
+	def remove_test_quotation(self, quotation):
+		frappe.set_user("Administrator")
+		quotation.delete()
 
 	# helper functions
 	def enable_shopping_cart(self):
@@ -131,15 +178,9 @@
 				{"doctype": "Shopping Cart Price List", "parentfield": "price_lists",
 					"selling_price_list": "_Test Price List Rest of the World"}
 			])
-			settings.set("sales_taxes_and_charges_masters", [
-				# tax masters
-				{"doctype": "Shopping Cart Taxes and Charges Master", "parentfield": "sales_taxes_and_charges_masters",
-					"sales_taxes_and_charges_master": "_Test India Tax Master"},
-				{"doctype": "Shopping Cart Taxes and Charges Master", "parentfield": "sales_taxes_and_charges_masters",
-					"sales_taxes_and_charges_master": "_Test Sales Taxes and Charges Template - Rest of the World"},
-			])
 			settings.set("shipping_rules", {"doctype": "Shopping Cart Shipping Rule", "parentfield": "shipping_rules",
 					"shipping_rule": "_Test Shipping Rule - India"})
+					
 
 		settings.save()
 		frappe.local.shopping_cart_settings = None
@@ -203,7 +244,6 @@
 		quotation = get_quotation()
 		quotation.set("items", [])
 		quotation.save(ignore_permissions=True)
-
-
+		
 test_dependencies = ["Sales Taxes and Charges Template", "Price List", "Item Price", "Shipping Rule", "Currency Exchange",
-	"Customer Group", "Lead", "Customer", "Contact", "Address", "Item"]
+	"Customer Group", "Lead", "Customer", "Contact", "Address", "Item", "Tax Rule"]
diff --git a/erpnext/utilities/doctype/address/test_records.json b/erpnext/utilities/doctype/address/test_records.json
index 41a6abc..a7bde9a 100644
--- a/erpnext/utilities/doctype/address/test_records.json
+++ b/erpnext/utilities/doctype/address/test_records.json
@@ -3,7 +3,8 @@
   "address_line1": "_Test Address Line 1", 
   "address_title": "_Test Address", 
   "address_type": "Office", 
-  "city": "_Test City", 
+  "city": "_Test City",
+  "state": "Test State",
   "country": "India", 
   "customer": "_Test Customer", 
   "customer_name": "_Test Customer",