CST or VAT needs to be determined based on Ship-to-party

[Former Member]

Dear All,

We have a specific requirement for one of our customer.

Customer wants the system to determine CST and VAT to be determined based on ship to party.

Say for Example, we have a condition table Country / Region / Region of Delivering plant / Tax class. Cust. / Tax Class. Mat.

In the sales Ship to party and Sold to party are different.

In this case, if the tax classification of the Sold to party 0 and tax classification of Ship to party is 1 means, system should determine CST or VAT according to According to ship to party.

In simple, CST or VAT should be determined based on Ship to party irrespective of the setting in Sold to party.

Please suggest.

Regards,

Mullairaja

[Lakshmipathi · Accepted solution]

Tax will always be determined for the combination of delivering plant region and ship to party region only. Dont bother about sold to party. What you had indicated is a standard feature.

thanks

G. Lakshmipathi

[jignesh_mehta3]

Hello Mullairaja,

See Ship to Party is the partner who will receie the goods & applicability of VAT or CST will be decided by Ship to party Region.

As Sold to party & Ship to party can belong to different Regions (Different States in India) VAT or CST may be applicable as the case may be...

Thus this is a standard SAP funtion to determine VST / CST based on Region & Tax Classification Indicator of Ship-to-party.

Hope this helps..

Thanks,

Jignesh Mehta

[Former Member]

HI,

the thumb rule of SAP is

to determine the taxes either it is VAT or CST - basing on SH location.

hope this is clear to you

balaji

[reazuddin_md]

Hi,

Find the help doc which is self explanatory.

Path: IMG- SD - Basic Functions - Taxes - Maintain Sales tax identification number determination.

System reads the tax classification based on settings maintain in this node. This is wrt:sales org.

Regards,

Reazuddin MD