Tax classification

[Former Member]

Hello Gurus

Goodevening to everybody.

The tax is not applicable for material under CST or VAT, but selling the same material ,Is it possible to have tax for the customer under CST or VAT, looking for your input ,i am bit confused about the tax classification.

Thank you in advance.

Regards

Ravi.M

[n_palanisami · Accepted solution]

Yes, customer tax classification and material tax classification are different. Even though the material tax class is zero, customer tax class can be 1. Tax determined will be based on both the classifications.

[Former Member]

Than you all for help.

Regards

Ravi.M

[Lakshmipathi]

First, you should understand the basic logic in tax determination. Tax is applicable for customer and not for a material.

Having said this, yes you can levy tax for any customer based on the settings you maintain in VK11 for condition type MWST or UTXJ.

thanks

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi,

goodevening,

The following combination i took in my access sequence,

1. Country/Region/ Customer tax classification1/ Material tax classification1

2.Country/Region/ Customer /Customer tax classification1/ Material / Material tax classification1

3.Customer/Material

4.Domestic Taxes

For both condition Types VAT and CST,

after checking the combinationS 1, 2 , 4. i found these conditions are not reflecting in my sales order , when went to analysis , there some missing icon showing for customer classification and material tax classification.

Note-1.In customer CST is applicable :" 1" and CST is "zero " in material master for One scenario.

2.VAT is "one " in customer master ,VAT" zer"o in material master.

In both screnario it is not recognizing the classification , when i go for analsysis in sales order in conditions.

Looking for inputs.

Thank you,

Regards

Ravi.M

[Lakshmipathi]

after checking the combinationS 1, 2 , 4. i found these
     conditions are not reflecting in my sales order

You should maintain tax condition type only for any one of the above combinations and not in all. From your above comments, it seems that you have maintained in all and if so, this is wrong.

You also have to check in the following areas

1) In FTXP, you should be having two tax codes; one for CST and another one for VAT with the required tax percentage

2) This tax codes should have been assigned in VK11 for condition type MWST for either of the combination 2 or 4 which are more appropriate for taxes

3) Finally, ensure that this tax condition type is maintained in pricing procedure with correct From-To step number

thanks

G. Lakshmipathi