hi! please help me in taxes(cst / vat)

[Former Member]

hi,

I want to know what is use of Tax classification category in "Material Master" & "customer master".

if for the same tax category e.g.VAT

I am maintaining different tax classification category (0 or 1) in Material Master & customer master then how my system will be react.

please help me

[Lakshmipathi]

Please search the forum before posting any basic or repeated questions.

thanks

G. Lakshmipathi

[Former Member]

hi

this is to inform you that

the relevance of customer and material master tax classification are whether you want to maintain taxes fully or half tax or zero tax you have to indicator here in relevant masters & it will flow into sales order through condition records & with the help tax codes.

tax codees will be maintained against the country.

these tax classifications can be changed at transaction level while creating a sales document. if changed it will pic the relevant condition record into the sales document.

finally CMR & MMR tax classifications are used to determine whether the customer and material is relevant for taxes or not.

2. if the condition record exists for the same which you have mentioned in the combination of 0 0r 1 then it will flow to sales documents.

other wise not.

THUMB RULE: TAXES ARE DETERMINED ON THE BASIS OF SH & country keys of the SH & deliverying plant.

balajia

[Former Member]

Hi,

Tax classification indicator is used to determine correct tax rate in sales document.

If you change the tax classification indtcator in sales document header / item data, taxes would be redetermined in sales document.

You can find tax determination configuration in below node:

IMG- Sales and distribution u2013Basic functions -Taxes

FYI:

During sales order processing, the system copies the tax classification from the tax information stored in the customer master record of the payer, if the payer is different from the sold-to party and the sales tax identification number is maintained for the payer.

-ship to party, if the tax identification number(for example: VAT Number) of the ship-to party is maintained.

-sold-to party, if none of the criteria for the payer or the ship-to party are met.

During pricing, the system calculates any relevant taxes by taking the following factors into account:

-The tax classification of the customer and the material

-The country keys of the customer and the delivering plant.

Best Regards,

Chandra