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Former Member

tax will be calculated on whose name

hi,

good afternoon to all,

in sap liabrary i read TAX WILL BE DETERMINED BY

1. COUNTRY KEYS OF CUSTOMER

2. COUNTRY

3. TAX WILL BE DETERMINED BY SHIP TO PARTY ADDRESS.

here is my question:

for eg:

my plant is in rajasthan it has registered under excise.

customer is in chennai.

so against CST sales the customer in chennai is purchasing from plant,directly.

in this situation he has to submit form 'C' against the goods.

now which tax will be applicable either rajasthan tax rules or customer location rules

and which location form he has to submit either rajasthan's or chennai's (t.n.).

plz clarify,

regads,

balaji.t

099900019711

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3 Answers

  • Jun 09, 2008 at 09:22 AM

    Dear balaji

    Several parameters influence the tax amounts and tax rates determination. The most important ones include:

    Delivering country (origin)

    Tax class of the ship-to partner

    Tax class of the material being shipped

    Tax calculation date

    Jurisdiction code from ship-to-party (customer)

    Jurisdiction code from ship-from address (plant)

    Point-of-order acceptance

    Point-of-order origin

    For tax, SAP defaults the ship-from jurisdiction maintained on the plant as the point-of-order acceptance, and defaults the ship-to jurisdiction maintained on the customer as the point-of-order origin.

    Also you can change the tax determination from Ship-To to Sold-To, if you so desire.

    thanks

    G. Lakshmipathi

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    Former Member
    Jun 09, 2008 at 12:57 PM

    Balaji,

    The tax rate is determined from the material master and the customer master records.

    Here you maintain the tax classifications.

    IN the customer ttax classifications you can have as follows:

    0 No tax

    1 CST 3%

    2 CST 1%

    3 VAT 12.5%

    4. VAT 4% .....

    IN the MM table you can have similar classifications but the simplest is

    0 NO tax

    1 Full tax.

    Now when the customer is within the state, then in the customer master record you insert relevant tax classification say 3. The MM classficiation will be 1 .

    Depending on this the system searches for the condition record where you maintain 12.5% as the condition record with the relevant access, tax classification of customer, tax classification of customer and TAx code.

    The tax code used here is a dummy tax code which does not have any values if you use TAXINN and the system dumps it when t does not find a value and used the condition technique to calculate the value.

    Now since your customer is in chennai and factory in rajasthan, it will look where plant and customer is placed and pickup 1 and 1 from trhe respective master records and looks for the condition record i.e 3%.

    Hope this helps. Any questions pls revert. The access that you have mentioned is not used in CIN. Because then the classifications have no role to play.

    regds

    Jude Xavier.

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    Former Member
    Dec 23, 2010 at 12:32 PM

    answered

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