Woo commerce cart is taxing shipping separately not of total order

Woo commerce cart is taxing shipping separately not of total order. Simply I am trying to add 10 percent tax to overall order and its returning the wrong results.

Example : 

item price : $12600
shipping price :$140.98
tax 10% : 1266.90
total Price : $14,007.88

Total Price should amount to $14,015.07 and tax should be
$1274.10.After many tests, the items are taxed
correctly but the shipping is getting tax i think by its self, not 
tax inclusively as total order

Ideally  example results expect:

item 1  : $10
Item 2  : $10 
shipping: $5

Than tax everything at 10%.

Any idea’s?

Tried all combinations within woo commerce setting in regards to shipping and taxes.
Current tax rate set at 10%.