how a taxclassification is taken in account when a country 4 tax category

[Former Member]

Find the below Change view "Taxes:Tax Category by country":overview

COUNTRY DESCRIPTION SEQ TAX CATEGORY NAME

IN India 1 JIVC IN A/R CST Payable

IN India 2 JIVP IN A/R VAT Payable

IN India 3 JSVD Service Tax

IN India 4 JEC3 IN Ecess on Serv tax

Suppose if the sequence is 3 means,whether system will consider sequence as tax classification customer 2,tax classification material 2.

What is the use of creating 4 tax category per material or it is better to have one tax category maintain every thing based on condition record.

[jpfriends079 · Accepted solution]

For your understanding:

COUNTRY	DESCRIPTION	SEQ	TAX CATEGORY NAME	Customer Tax Classification Field	Material Tax Classification Field
				(for condition record maintenance	(for condition record maintenance
				& further determination in sales order)	& further determination in sales order)
IN	India	1	JIVC IN A/R CST Payable	TAXK1	TAXM1
IN	India	2	JIVP IN A/R VAT Payable	TAXK2	TAXM2
IN	India	3	JSVD Service Tax	TAXK3	TAXM3
IN	India	4	JEC3 IN Ecess on Serv tax	TAXK4	TAXM4

What is the use of creating 4 tax category per material or it is better to have one tax category maintain every thing based on condition record.

This to differentiate tax condition maintained in condition record and further determination sales order without overlapping.

It is understood that al,l the above tax are different and relevant for different tax scenario.

And accordingly based on material or customer, this may differ.

Regards

JP

[Lakshmipathi]

If you want the system to fetch different tax structure in sale order / billing, you can have 4 tax category. Of course, this will work, only if you have the relevant access sequence where you need to have tables like 040, 041 & 042. Otherwise, only one tax category is enough.

G. Lakshmipathi