Calculation Logic In taxes.

Hello,

I have a scenario, where in there is a logic in taxes and its based on mutual understanding between mu=y client and his vendor.

The logic is as follows;

Total amount-----------100

Tax exempted----------40

Taxable amount--------60

Tax rate-------------------14%

Now my client pays 14% on 30

Vendor pays 14% on remaining taxable amount 30.

Can we build in standard FTXP. Kindly suggest any inputs. It will be highly valued.

Regards,

Shyam.

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Former Member
Apr 11, 2016 at 10:46 AM

Hi,

In this case you can maintain 7 % on taxable amount so system will calculate as per your requirement.

Regards, Rakesh

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• Former Member Shyam Chelluri

Hi,

For service tax, you need to derive applicable % based on taxable value i.e. 100

in you case, it would be 4.2 % on 100 which is equal to 7 % on 60

also refer thread http://scn.sap.com/thread/3385492 for other possible way to maintain required taxes

regards, Rakesh

• Former Member
Apr 11, 2016 at 11:17 AM

Hi,

For 60 % tax on goods amount where 40 % exempted - You can create Excise Duty Indicator 60% in SPRO and keep maintaining it in J1ID.

For service tax on goods value on recoverable basis- you can follow target tax code concept. Refer

Regards,

Biju K