Tax deduction in EXPORT process

[Former Member]

Hi

Please let me at what stage will we deduct tax ( during SAP business transaction ) in following senarios

1. When Form C is submitted

2. during Export process when ARE 1/bond is generated

3.when ARE 3 document/license is generate/bond

For above senario's I want to clarify that will we deduct tax while creating sales order or will we adjust it after invoice when we create bond/license.

Thanks

[Former Member]

Hi,

1.C form is a sort of tax discount applicable when both the parties are registered under VAT (TIN No ) Say instead of 12.5 % tax bill at 2% tax if C form is received before PGI.Create a tax classification with C form and without C form and assign to your customer master and use the same in sales order.

2.Both exports (Except claim of rebate) and deemed exports are exempted from excise duty and sales tax as per govt norms,In sales order the excise values will be calculated but will be statistical (No account posting) the displayed value is only for creation of ARE forms (Export removal).

Regards,

Siraj