Questions about CIN tax procedure choice and pricing schemas

[Former Member]

Hi all,

I have to implement SAP on a Indian company and I'm verifying all particularity about this country (in particular tax procedures and the great number of differents tax conditions used).

I have two questions about tax procedures and pricing schemas. Every feedback about thse points will be appreciated.

a) To choose tax procedure TAXINN or TAXINJ which are the elements that I have to consider?

I have read lot of documentation about CIN implementation and Iu2019m oriented to choose TAXINN schema, but If possible I would to understand better which are on behalf of one choice or another.

b) To define pricing schemas for India, after check with local users and using examples of documents (in particular tax invoice) actually produced, I have understood that taxes have to be applied on amount defined starting from price list, minus discounts recognized to customer plus surcharges eventually to bill (packing, transport, etc.).

Itu2019s correct for any type of taxes that tax amount is calculated on u201Cnet valueu201D defined at item level or there are exceptions to this rule?

Thanks in advance

Gianpaolo

[Lakshmipathi]

Itu2019s correct for any type of taxes that tax amount is calculated on u201Cnet valueu201D 
  defined at item level or there are exceptions to this rule?

Yes you are correct. Your PR00 price minus discount plus freight or any charges that should be debited on customer is your net value and for this, tax should be calculated. In short, in sale order condition tab, whatever value you see in the field "Net Value", for that tax should be calculated. For excise duty, this will vary. Sometimes, selling price and the actual assessable value will differ in which case, excise duty should be calculated on assessable value only and not on the selling price.

thanks

G. Lakshmipathi

[Former Member]

hi,

this is to inform you that,

a) To choose tax procedure TAXINN or TAXINJ which are the elements that I have to consider?

a.a) TAXINJ IS FORMULA BASED AS SAID ABOVE AND TAXINN IS

CONDITION BASED. so prefer TAXINN.

b) To define pricing schemas for India, after check with local users and using examples of documents (in particular tax invoice) actually produced, I have understood that taxes have to be applied on amount defined starting from price list, minus discounts recognized to customer plus surcharges eventually to bill (packing, transport, etc.).

Itu2019s correct for any type of taxes that tax amount is calculated on u201Cnet valueu201D defined at item level or there are exceptions to this rule?

b.a) it depends on your requriment.

NOTE : there are number of threads in FORUM, requesting to check before posting

balajia

[Former Member]

Hi balajia,

Thanks for your answer, but:

a) About point 1 I know the difference between the 2 tax procedures (conditions or formulas). I also have read in others post in the FORUM that TAXINN is preferable. So I would to understand which are the advantages to choose instead TAXINJ. There are particular reasons or it'a only an alternative customizing setting?

b) About point 2, to define which value has to be used as base amount to calculate taxes isn't a choice, but is defined depending by fiscal requirement of the country, in this case India fiscal requirement. I know that, as Lakshmipathi

write as answer on my question, exception could be, but it was important for me to understand if I have understood correctly the sequence of the pricing condition in the schema in "normal" situation.

About post of messages in FORUM, I'm sorry if there are already lot of post that clarify doubts like those I have written. I have searched in FORUM before posting, but I haven't found clear answer about these questions.

Regards

Gianpaolo

[Former Member]

hi,

this is to inform you that,

a) About point 1 I know the difference between the 2 tax procedures (conditions or formulas). I also have read in others post in the FORUM that TAXINN is preferable. So I would to understand which are the advantages to choose instead TAXINJ. There are particular reasons or it'a only an alternative customizing setting?

a.a. for give for posting the link :

b) About point 2, to define which value has to be used as base amount to calculate taxes isn't a choice, but is defined depending by fiscal requirement of the country, in this case India fiscal requirement. I know that, as Lakshmipathi

write as answer on my question, exception could be, but it was important for me to understand if I have understood correctly the sequence of the pricing condition in the schema in "normal" situation.

b.b. you can create your own pricing procedure for this and go ahead.

hope this clears your issue.

balajia