tax

[Former Member]

Hi

SD gurs

customer belongs to Gujarat, plant is Madhya Pradesh and material should go to Punjab, so in this scenario how tax will be calculated

[jpfriends079 · Accepted solution]

First of all, hope you are aware that tax determination place based on

Delivering Plant	Ship-to party	Customer Tax classification	Material Tax classification
Departure country	Destination country	Customer Master	Material Master

Your requirement is for same country

customer belongs to Gujarat, 

Sold-to Party address is of Gujarat. Sold-to party doesn't play any role in tax determination.

plant is Madhya Pradesh 

Country of delivery plant is India and region is Gujarat.

and material should go to Punjab

As material need to be delivered in Punjab. The partner function involved for this Ship-to Party with Punjab address. Obviously,  destination country of ship to party is India.

With above rule this requirement becomes a domestic sales as Country of Delivery Country = Ship-to Party Country ,

Delivering Plant	Ship-to party	Customer Tax classification	Material Tax classification
Departure country	Destination country	Customer Master	Material Master
IN	IN	1-Liable for Tax	1-Taxable
IN	US	0-Not Liable for Tax	1-Taxable

As you are liable to pay domestic taxes.

So, need to plant & Ship-to Party region into consideration for computation of taxes.

Domestic Tax Type	Delivering Plant	Delivering Plant	Ship-to party	Ship-to Party	Customer Tax classification	Material Tax classification
CST/VAT	Departure country	Region	Destination country	Region	Customer Master	Material Master
VAT	IN	GJ	IN	GJ	1-Liable for Tax	1-Taxable
CST	IN	GJ	IN	PJ	1-Liable for Tax	1-Taxbale

So, you need to have pricing access to take care of above scenario.

Condition   Document	Stru. Doc	Field Long	Field label
ALAND	KOMK	ALAND	Country
WKREG	KOMK	WKREG	Region of dlv.plant
REGIO	KOMK	REGIO	Region
TAXK1	KOMK	TAXK1	TaxClass1-Cust
TAXM1	KOMP	TAXM1	Tax class. material

I hope this will help you.

Thanks, JP

[former_member216388]

Hello Narra you just need to maintain a condition record for punjab where in your respective tax condition type- tax is featured based on your ship to party in the sales order.

Regards

Madan Shetty

[Former Member]

Hi Murali,

Tax will be determined based on ship to party ( Punjab in this scenario) . so maintain access sequence

country/Region of Delivering plant / Region of ship to party / customer tax classification1/ material tax classification1.

In this scenario CST should be triggered.

Thanks,

samba

[former_member186385]

Hi,

create the customer Sold-to Party with Gujarat address

Create Ship to customer with Punjab address

assign ship to customer in the sold to address

Tax is determined based on the

Plant

Ship to region

Customer tax classification

Material tax classification from material master

maintain the condition record for MWST ( as per standard) and check

regards,

santosh

[Former Member]

Hi Murali,

it is very basic question, In your case ship to party is Punjab and on basis Plant region, Ship to Party Region and Tax Classification of ship to party and Material it will be applicable only CST.

Hope you understand it.

Regards

Arun