Tax code A0 country IN does not exist in procedure ZTAXIN-Message no. FF713

While posting customer invoice using output tax code A* for country IN, I get the following error message:

Tax code A0 country IN does not exist in procedure ZTAXIN

Message no. FF713

The tax procedure ZTAXIN is assigned to comp code, taxes are configured and everything seems to be fine. The procedure has been manually created (for service tax purposes) and I am wondering whether the procedure might be wrong. Or there are any other settings missing in customizing?

The input tax is working fine, the problem is related only when I use outout tax.

Does anybody have an idea what else could be checked?

Thanks,

Magda