Significance of Taxcode in TAXINN proceudre

[Former Member]

Hi Experts,

Scenario,

I am doing sales from Mumbai to Gujarat while CST must be applicable, my doubt is that , when we are doing Mumbai to Gujarat (state to state) sales in our taxinn procedure , Naturally CST is applicable. if we double click on the condition type JCST , i could find "A1" Tax code.

i checked with "A1" taxcode with the help of FTXP t Code but i couldnt find any percentage or amount inside the "A1" Taxcode.

Here what is the significance of Taxcode in Taxinn Procedure?

Shibu

[Former Member]

thanks

[bcrao]

In VK11- you need to select appropriate tax code- for JCST

[jpfriends079]

Taxcode signifies,

- whether the tax condition type associated is an output type or input type.

- in FTXP, for the tax procedure you specific the %.

Thanks & Regards

JP

[Former Member]

Hi JP,

Could you please explain why we need to use Taxcode in Taxinn Procedure?

Shibu

[jpfriends079]

Tax Code: It represents a tax category which must be taken into consideration when making a tax return to the tax authorities.

Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code.

For tax-exempt or non-taxable transactions, you should use tax codes with a 0 percentage rate if the corresponding transactions are to be displayed in the tax returns.

You must define new tax codes if tax rates are changed by the state. The old codes with the old tax rates must remain in the system until no more open items which use this tax code exist.

Tax Rate in FTXP gives the percentage rate for the corresponding tax type.

Tax Type indicator in FTXP is for differentiating output tax and input tax.

Transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.

The transaction keys are defined in the system and cannot be changed by the user. These Transaction Key are define against the condition types in the tax procedure.

Tax Procedure is for calculating taxes on sales/purchases

I hope this can assist you.

Thanks & Regards

JP

[Former Member]

hi JP Sir,

IN TAXINJ, we are using Taxcode because where taxcode is very important. we are entering Excise duty rate,cess rate and CST rate in taxcode and the same rate will be appeared in the condition so we come to know the importance of Taxcode in TAXINJ procedure.

But In TAXINN, we are not entering any Excise rate, Cess Rate and CST Rate(Important Part) in Taxode even then we are adding taxcode while we are creating condition record for CST. my doubt is that we are entering taxcode while creating condition record for CST even though we are not entering excise rate and CST rate into Taxcode

Shibu

[Lakshmipathi]

The basic difference betweeen TAXINJ and TAXINN for tax related condition types is that in TAXINJ, you will be maintaining the required percentage in FTXP, whereas for TAXINN, you need to maintain the same in either in FV11.

thanks

G. Lakshmipathi

[Former Member]

Hi Sir,

we are not maintaining Tax rates in FV11 for TAXINN procedure , we are mainitaining only in VK11,

My doubt is that

why we need to use taxcode in CST (JCST) in TAXINN even though we are not maintaining any tax rate into taxcode?

what is the logic behind it?

IN TaxINJ we are using Taxcode because we are maintaining tax rates into Taxcode so the rates will be appeared in to condition with the help of Taxcode so taxcode is very important in TAXINJ.

.But in TAXINN we are not mainitaining tax rates into taxcode even then we are mainitaining taxcode while creating ondition record of CST (JCST). here in TAXINN, why we need to add taxcode while creating condition record of CST(JCST)?

Shibu

[jpfriends079]

See, I already explained

>Tax Code: It represents a tax category which must be taken into consideration when making a tax return to the tax authorities. Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code. For tax-exempt or non-taxable transactions, you should use tax codes with a 0 percentage rate if the corresponding transactions are to be displayed in the tax returns. You must define new tax codes if tax rates are changed by the state. The old codes with the old tax rates must remain in the system until no more open items which use this tax code exist.

As per SAP Help, tax code two-digit code that represents the specifications used for calculating and displaying tax.

Examples of the specifications defined under the tax code are:

-Tax rate

-Type of tax (input tax or output tax)

-Calculation method (percentage included or percentage separate)

Tax code are integral part of tax determination, whether you go for Condition or Formula based excise or even you are not using tax procedure in sales for tax, still taxcode are required. Rightly, pointed out by Laxmi ji that you need o specify condition record for condition type in FV11 for condition based excise, i.e, TAXINN, there also, you have to specify tax code in condition records for them.

Hope this can assist you.

Thanks & Regards

JP