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Former Member

Vat deduction from unregistered dealer purchase

Dear All,

We have a following requirement:-

We are purchasing stores item from unregistered dealer(vendor) Say Rs.100/- . In PO tax type only Gross value is Rs.100/-

GR entry:- Inventory A/c Dr 100

GR/IR A/c Cr 100

At the time of IR-Invoice Verification following entry is required:-

GR/IR A/c Dr 100/-

Vendor A/c Cr 90/-

Vat Payable Cr 10/-

I think by creating a Wht Tax Code for Vat can be best SAP practice.

If any other idea may please be shared if possible in MM module.

Regards,

Alok

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3 Answers

  • Posted on Dec 31, 2013 at 01:32 PM

    Hello Alok,

    If you want to have this set up, then you need to configure taxcodes and assign it to India tax code procedure. Generally, how it will be done is in one taxcode they will map following important conditions types.

    Excise

    Education Cess

    Secondary Edu Cess

    VAT

    Surcharge on VAT

    Then while creating a PO, assign this particular taxcode there.Hope it helps. Please let me know if you have already created tax procedure for India.

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  • Posted on Jan 02, 2014 at 01:37 PM

    What is the tax procedure assigned to your country code. TAXINN or TAXINJ?

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 03, 2014 at 09:41 AM

    This can be achieved with proper tax code in MIRO and check the entries in simulation before posting , tax which includes VAT

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