VAT Configuration for India with out CIN

[Former Member]

Hi Experts,

Greetings. My clinet is into service industry,basically our products include online data sets, software. When the Project was implemented as per the discussions with the tax experts the system is configured with out CIN. All these Proudcts are liable only for Service Tax.So a new "ZSER" tax condition type is created and included in the pricing procedures.

Now Business decided to sell few more products in India through India Legal Entity. Few tax experts say that some of these Products may fall Under VAT.

As I am completely New to India Tax scenarios could some one help me on what questions I can ask the business regardng VAT and When we say VAT does it also mean that a separate document need to be created like Excise invoice or some thing before we actually create an Invoice and wil there be any additonal reporting requirements from VAT perspective?

I have gone through the VAT doucmnetation available in the Net but couldnt undestand completely as i am not much familar with CIN.

Request your help in this Regard.

Thanks,

Srini

[Former Member]

Hi'

Discuss with your client regarding the report and identify what are the required fields.

Then you can develop a report

Else as suggested show them the standard report in J1I2

regards

PRashanth

[Former Member]

Hi

No separate configuration for CIN is required.

You have to know what are the tax rates for VAT.

If they also have interstate sales then CST may be applicable.

You have to include the 2 condition types in your pricing procedure.

1 is for VAT may be you can copy JIVP and rename it as ZVAT

2 is for CST may be you can copy JIVC and name it as ZCST.

You have to create tax classificationsfor Material as well as customer

No separate document needs to be created like excise for only VAT

For reporting requirements discuss with your client may be you can develop a SALES REGISTER

regards

Prashanth

[Former Member]

Hi Prasanth,

Thanks a lot for your reply. The condtion types JIVP and JIVC are not available in our system.How ever we will create two new tax conditon types by copying the most nearst condtion type and add them into the SD pricing Procedure and FI tax Procedure.

Do we need to configure these two condtion types as tax determinition rules in Path: Spro-> IMG> S&D->Basic functions->Taxes>define tax determinatin rules : Here for these two condtion types we need to define the possible classfications for the cusotmer as well as material and subsequently Cleanse the cusotmer master data and material master data to update the classification for these two tax categories?

Is there any other option like using one tax category like MWST/UTXJ and make the two condition types to work. I am habituated to u.s and canada tax procedures where we can have multiple tax conditon types using one tax category.Please excuse if my question is basic.

Thanks,

Srini

[Former Member]

HI

Yes you have to define the tax classification and assign them in master data of customer and material master.

You have to define 2 condition types for VAT and CST.

VAT or CST are determined on the basis of Country/Plant region/customer region/tax calssification for customer / material tax classification

regards

Prashanth

[Former Member]

Hi Prashanth,

Could you throw some light on how to create sales registers and automatically update those?

Thanks,

Srini

[jignesh_mehta3]

Hello,

T-Code - J1ILN for Indialocalization Menu.

T-Code - J1I2 for Sales Tax Register

You can extract this Sales Tax (VAT or CST) Register, by entering Tax Code or Tax Condition Type.

Hope this helps.

Thanks,

Jignesh Mehta