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Former Member

doubt about vat

Hello Sd Gurus..

my question is how the system know whether this customer is applicable for cst or vat......

we maintain both vat and cst percentages....when we raise the sales order how the system know...whether for this customer vat should applicable or cst should applicable...

Thanking you

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4 Answers

  • Best Answer
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    Former Member
    Dec 07, 2011 at 06:59 AM

    Hi,

    System will check the region of the customer and region of the plant existed in sale order.If both are same than system will determine LST if both are different system will determined CST.

    This is the standard behavior,because we specify Requirement 10(plant is set) for the tax condition types in V/08.

    Let me know for further clarification.

    Thank you,

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    Former Member
    Dec 07, 2011 at 07:12 AM

    Hi kramsapsd

    --Create a condition Record in VK11 for your condition type with key combination of *Customer/country/Plant/Region/Tax classification category (0-No Tax,1-Full Tax/2-Half Tax)* & maintain VAT or CST in record

    EX- 1000/IN/100/01/1-VAT is 5%

    EX-1001/IN/101/03/1-CST is 3%

    -- Assign the Taxes in Customer Master Record XD01 in Billing Tab under Sales Area& Material Master Record MM01 in Sales Org 1

    --When you raise sales order if the customer belongs to 01 region VAT will pick & if he belongs to 02 regions - CST will pick.

    --Along with this you have to do the customization what JP said.

    Let me know if your problem is olved

    Regards

    Pradeep

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  • Dec 07, 2011 at 06:34 AM

    This is done through

    Materials & Customer Tax classification.

    Some important TCode for this:

    OBBG - Assign Tax Country to calculation procedure

    OVK3 - Define the Customer Tax category

    OVK4 - Define the Material Tax category

    OVK1 - Define Tax determaintion rules

    Refer following SAP Notes for reference on the same:

    - Note 872449 - the sales tax identification

    - Note 191932 - Incorrect tax classifications in the SD document

    Even put Materials Tax classification & Customer Tax classification in SDN or google search to see discuuesd topic links on the same.

    Regards

    JP

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    Former Member
    Dec 07, 2011 at 06:43 AM

    Dear kramsapsd,

    This is by the help of condition records maintaince in VK11 for JCST and JLST.

    For example the condition record for JLST you may have the key combination like this "customer/region/plan/tax classification no..

    Like that same CST also key combination is"Customer/region/plant/tax classification no.

    If the customer belongs to the same region(Will be set in customer master),plant and process same tax classification number then LST will be applicable.If not CST will be applicable.

    Besides TAX-codes will also play a major role.

    Hope it will fix your issue.

    Thanks&Regards

    Raghu.k

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