Tax in Intercompany Stock Transfer

[Former Member]

Hi all,

I have a Intercompany STO scenario as below

stock is moving from plant in US to a plant in India. (two different company codes)

in the ship to party's customer master in billing tab. MWST is maintained for US as relevant for tax.

is this sufficient to pick the MWST tax in the billing document or is it required to maintain MWST for India also in the customer master of ship to party.

how does the VAT (MWST) is calculated.

thanks in advance for immediat help

harini

[Lakshmipathi · Accepted solution]

Dear Harini

Several parameters influence the tax amounts and tax rates determination. The most important ones include:

• Delivering country (origin)

• Tax class of the ship-to partner

• Tax class of the material being shipped

• Tax calculation date

• Jurisdiction code from ship-to-party (customer)

• Jurisdiction code from ship-from address (plant)

• Point-of-order acceptance

• Point-of-order origin

Note

SAP defaults the ship-from jurisdiction maintained on the plant as the point-of-order acceptance, and defaults the ship-to jurisdiction maintained on the customer as the point-of-order origin.

thanks

G. Lakshmipathi