Dear All,
As per indian tax laws we need to pay tax on sub-contracting components which will be consumed during GR.
For example-
Sub-contracting PO is created for finished product- A, Qty=1 and cost=100Rs
There is BOM for A
1 qty of A= 2 No of B & 3 No of C.
MAP of B= 25 Rs
MAP of C= 35 Rs
Consumption amount for components= 2*25+3*35
= 155 Rs.
We need to apply tax on this amount-155 Rs.
So there will be tax on Cost of sub-contracting(i.e.-100Rs.) and tax on Components consumed(i.e.-155Rs.). The first part can be handled using regular tax code in PO. But how to handle second part.
Please suggest any solution or SAP note.