How to exclude an AR transaction type from tax?

Hi All,

I am trying to work on below requirement, Can anyone help me out?

How to exclude an AR transaction type from tax?

I have Tried below two options :

1 ) I have disabled the tax classification check box at Transaction type level but still the taxes are getting calculated for that Transaction type .

The below condition satisfied.

defaults tax classification code for this transaction. This value is only relevant in release 11.5 or a release 12 instances that are using E-business tax setups

defaulted from an upgraded release 11.5 instance

2 ) I have followed the steps from the note  811272.1 but got stuck at step 3 level as i am unable to find condition set and factor set at tax rules level.