No Tax MWST for One Customer

[Former Member]

Hello All,

We have a requirement , where one customer should not be charged with 16% MWST,i.e. for this customer tax should be zero.

I tried this by creating new condition type , which offers cash discount of 16%,but the same is deducted from Net Value (Revenue) & not from Tax.

How can we achieve by adding 16% MWST for Customer & again the same 16% is deducted from Tax Amount & not from Net Amount.

Please advice.

Regards,

Vikas

[sidi_reghioui]

You should not charge the customer full amount and deduct the surcharged amount (= tax) from net value as cash discount.

This means you will need to pay extra tax to the Tax authorities which you probably do not want to do.

Doing it your way with discount, will result in less income, cause the tax will have to be paid and the discount in an advantage of the customer.

You should exempt the customer from tax by assigning the relevant tax code to the customer master.

[Former Member]

Hi Vikas,

I have not tried this, So I am not sure. But you can test it first in your test system.

I think system is not getting it from Tax because the tax account is different, Try to assign your tax account with your discount condition type.

Hope it helps,

Regards,

MT

[former_member204590]

hi you can do one thing just go in the customer master data and mark 0 for this particular customer for tax exempted in sales data view.

Thanks

[Former Member]

Hi Vikas

Your requirement is little confusing,

Why you want to charge and then deduct if you dont want to charge in first place.

Is customer getting rebate and stilll your company/client wants to show tax in your accounts as charged and then 100 % subsidized kind of thing.

IF you want to exempt customer, simply change tax classification of customer ,to ZERO % . add tax code as A0.

and maintian condition record of zero % for the combinations of this tax classification.

keep validaity period from when to be applicable and in sales document update pricing usiing option D.

If you really need to charge and then deduct the same amount,create a condition type by copying any Discount condition type change access sequence to JDUM.

Maintian condition record for 100 %.

Go to pricing procedure you are using add this condition type in step after your VAT condition and maintian VAT condition step number in from and to.

You can maintain accounting as per requirement .

This will serve your purpose .

Regards

Mandar