Skip to Content

Tax classification

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

Add comment
10|10000 characters needed characters exceeded

  • Follow
  • Get RSS Feed

3 Answers

  • Best Answer
    Jul 06, 2010 at 02:37 PM

    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.

    Add comment
    10|10000 characters needed characters exceeded

  • Jul 06, 2010 at 03:09 PM

    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

    Add comment
    10|10000 characters needed characters exceeded

    • 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

  • Jul 12, 2010 at 05:38 AM

    Than you all for help.

    Regards

    Ravi.M

    Add comment
    10|10000 characters needed characters exceeded