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Intra COmpany Tax Calculation.

Dear Experts,

We have Two plants under one Company . Goods are received at Plant A and latter transferred to Plant B (STO transfer). Currently we need to incorporate tax calculation in our system. Please let us know how to address below scenario.

Scenario:

Goods are received at Plant A, latter from plant A goods are transferred to Plant B (STO) transfer.

Now in Current Scenario:

We need not want tax to be calculated when goods are received in Plant A. We need to calculate Tax while goods are transferred from Plant A to Plant B (Tax to be calculated based on the input price of the item in plant A) . There can be already existing stock in Plant A.

How to address this scenario.

Thanks & Regards,

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1 Answer

  • Aug 06, 2017 at 07:32 AM

    From where the goods are received to plant A? in reference to a purchase order or do you produce it yourself?

    About which kind of tax is this question?

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    • Hi Jurgen,

      Goods are received in plant A against Purchase Order (Vendor). Plant A is located in a No-Tax zone. So we don't want input tax to be calculated on those.

      Plant B is in 5% tax zone. Once we do goods transfer from Plant A to B input tax of 5% should be applied.

      Example: Plant A receives goods 10000 $ from Vendor. Latter 5000$ goods are transferred to plant B on which 5% tax should be calculated i.e 5000 * 5% = 250 $

      Thanks & Regards