Repair & Replacement PO with different tax impact....

[Former Member]

Dear Expert,

Scenario:

1. Equipment being sent for repair and at the time of Good Receipt only I will come to know what are the Parts replaced in it by vendor.

2. On service charge there will be service tax applicable on it and  VAT will be applicable on the cost of the parts replaced.

Please advice how to tackle the scenario in SAP for India?

Thanks.

[Former Member]

You can create 2 line items in one Purchase Order. For, First line item mention the tax code of service tax and for second line item mention the tax code of VAT.

Another way, you can create 2 different condition types. First condition type for service tax and second condition type is for VAT. Add these both to the pricing procedure and in FV11 maintain the % value of Service tax and VAT accordingly.

Hope you understand.

[Former Member]

But is it recommended to have Service Purchase Line item and Material Purchase Line item in a single PO document type?

Also, the spare part replaced has to reflect as consumed at the time of MIGO.

Any other suggestions please....

[Former Member]

That's what I written in 1st line.