applying vat and cst depending upon the line item

[former_member405498]

Hi Experts,

i have a scenario where we have both service item(non stock) and spare part both in one sales order and we have both vat and cst in the pricing procedure.so how can we customize,so that vat is applied on sales item only(spare part) and cst is applied only on the service item.And the customization should be applicable if we have only one line item either service or spare and respective tax should be applied with out giving an error as vat or cst missing.

thanks in advance.

[Lakshmipathi · Accepted solution]

As you should be aware tax is not dependent on material but based on the region to where the goods are consigned.

Having said this, if your ship to party is same for both the line items, then the tax should also be same.

Of course, you can change the tax structure in sale order manually by changing the tax classification at line item level.  But before this, you should have two tax codes assigned in VK11 one for VAT and another for CST.

G. Lakshmipathi

[former_member405498 · Accepted solution]

Hi Laxmipathi,

thanks for your reply.i didn't completely get the above .cab you please briefly explain the customization that should be done so that respective taxes will be applied to the respective line items.

And even though ship to party is same,taxes cant be same because one is service item with 12%cst and the other line item is spare part with either 14% or 5 % depending upon whether its inter state or  intra state or inter state with a cform if iam not wrong.

thanks,

mk

[Former Member · Accepted solution]

Hi KM,

the VAT / CST will be determined by the system based on the following.

Region of the customer, Delivery plant, cust tax classification, material tax classification.

say for Ex. 1 + 1 + 1 + 1 will be 12 % VAT

                  1 + 1 + 1 + 1 will be 12 % CST

Thanks

VSA

[Former Member · Accepted solution]

HI km,

CST is applicable only when it is an interstate sale and VAT is applicable for Intrastate sale.

So if Ship-to-Party is same either CST or VAT should be applicable, not both.

If it is a service item there may be Service Tax...

check the tax classification maintained in the customer master and material master..

Regards,

AKN

[former_member405498 · Accepted solution]

HI laxmipathi,

i apologize for misleading you.i was supposed to put it as service tax instead of cst.i was carried away.

so my question is how to apply vat and service tax depending on the line items.

thanks

[former_member405498 · Accepted solution]

Hi AAsish,

i am sorry for misleading you.i was supposed to give it as vat and service tax.i was carried away.so my question is how to apply vat and service tax depending upon the line item.

thanks

[Former Member · Accepted solution]

Hi KM,

Maintain VK11 for Service Tax taking the combination- Country + Material

Regards,

AKN

[Former Member · Accepted solution]

Hi KM

For service tax in OVK3 you can mentioned

0 – Tax Exempt, 1 – Full tax, 2 – Concessional tax, 3 – Service tax

For Ex: combination of cust tax classification 1 + mat tax classification 3 can determine service tax

Thanks

VSA

[jignesh_mehta3 · Accepted solution]

Hello KM,

Do you know hos is vAT or Service Tax detemined for a material?

Go to MM03 - Sales: Sales Org 1 screen & here you have Tax Data.

Here you will have to enter as follows:

For Spare part: VAT: 12.5% & Service Tax: 0% (No Tax)

For Service Tax: VAT: 0% (No Tax) & Service Tax 12.36%

Subsequently you need to maintain condition Records & system will pick the necessary Tax accordingly.

Hope this helps,

Thanks,

Jignesh Mehta

[former_member405498 · Accepted solution]

Hi Jignesh,

in sales view how can we enter vat and service tax because nou i see ietem category as mwst and tax classif ans 1.how can i add vat and service tax there is it possible,please let me know how i can maintain this tax data both in customer master for vat and material master for service tax calculation.

thanks for ur help and time

[Former Member · Accepted solution]

Dear KM,

Add service tax indicator in customer master by using OVK3 and in Material Master by using OVK4.

AKN

[former_member188027]

Hi K M,

Suppose in your case you have both Sale tax and Service tax then Sale tax get in pricing as per the Ship to Party Address (Customer Region)

(VAT/CST) – Material tax classification/Customer tax classification/Delivery Plant

Now  if you want Service tax also then it is possible if you created one Statistical condition type e.g.- ZLBR- Labour Poration for Service tax for this Calculation type should be Fix amount or % as per your requirement , And then Put the logic so Service tax should be calculated on ZLBR ase per your requirement e.g. (10+2+1% )

JSE4 – A/R – Service tax (10%)

JES4 – A/R – Service ECS (2%)

JHE4 – A/R- Service S&HE (1%)

Regards,

Anand