REG: CST

[Former Member]

HI All,

i need a clarification on CST 2% OR 10%,

IF THE BUSINESS AND CUSTOMER BELONGS TO TWO DIFFERENT TAX REGIONS, THEN CST WILL BE APPLICABLE FOR THAT CUSTOMER,

IF THE CUSTOMER PRODUCE C FORM HE WILL LIABLE FOR 2 %, IF NOT 10%.

MY DOUBT IS HOW WE MAKE CONFIGURATION SETTING FOR THIS, LILKE IF THE CUSTOMER HAVING C FORM IT WILL SHOW 2% IN THE ORDER OTHERWISE 10%.

THANX IN ADVANCE

REGARDS,

RAM.

[former_member204513 · Accepted solution]

Dear Ram,

You define two different Tax classifications in the IMG >Sales and Distribution>Basic functions>Taxes>Define Tax Relevancy Of Master Records-->Customer Taxes

-->CST with C form

-->CST without C form

You assign one taxclasification to the one region customer as per the requirement.

You create different ship to party for the second region now you assign different customer tax classifications to that ship to party as per the requirement.

Finally you maintain the condition records for that region wise if it is TAXINN procedure or create Tax codes if the tax procedure is TAXINJ.

I hope this will help you,

Regards,

Murali.

[Former Member]

DEAR MURALI AND LAKSHMIPATHI,

THANQ U VERY MUCH, FOR UR INFORMATION.

REGARDS,

RAM.

[Lakshmipathi]

Dear Ram

Check this thread which will clarify your doubt

[Changing Tax Code in Sales Order |]

As I suggested in the above thread, you need to have two tax codes in UTXJ and change manually the tax classification in sale order if tax is not applicable.

thanks

G. Lakshmipathi

[Former Member]

dear murali,

First of all thank u very much for ur prompt response, as per ur explanation, i have only one ship party, actually my scenario is we have plant at mumbai, from mumbai we are selling goods to chennai, so he is going to submit c form to avail for 2% cst only,

my doubt is

1) how system knows that cform is available for this customer

2) how it differentiates 2% for c form customers and 10% against non c form customers.

regards,

ram

[former_member204513]

DearRam,

Through maintaining different customer tax classifications you get two different taxes as I Mentioned earlier also.

But you need to maintain two master data then you need to assign each tax classification to each customer master in the sales area data -->Billing Documents tab.

For example:- Define two customer tax classification

1.A --CST 10%

2.B--CST 2% with C form.

Once you mentioned tax classification in the customer master as B--CST 2% with C form allways he shoul be avail 2% tax only.

Once you mentioned Tax classification in the customer master as A --CST 10% with C form allways he shoul be avail 10% tax only.

So if the same customer avail in the different region means you better to have different ship to parties to maintain the different taxes.

If you are having that customer only in chennai and he is applicable to C form means one customer master is enough you can assign taxclassification as B--CST 2% with C form so he always has to submit C form.

If you have same customer in Mumbai and Chennai, Mumbai customer applicable to 10% CST then assign tax classification A CST 10% to this customer ,same customer in channai applicable to C form then you create different ship to party with region Channai then assign tax classification as BCST 2% with C form.

I hope this will help you,

Regards,

Murali.