Tax Category

[sridhar_madiraju]

Dear Gurus,

Could you please let me know the meaning of Tax category? How it is different from Tax types(ex: Input tax, Output tax)

What is customer tax category and material tax category? Can u provide some examples of tax categories?

What is tax classification ? difference between tax category and tax classification?

As i am unable to find its definition and meaning in wiki.

Relation between Tax category and Tax procedure?

What is configuring tax per document? (Read the wiki but didn't understand)

Regards,

Sridhar.

[reazuddin_md]

Hi,

I will try to explain in short.

Tax category:- In each country based on various business scenarios you would be having different taxes such as: local taxes, central taxes, service tax etcc., these are differentiated by tax category (Variants within taxes).

Tax classification:- There could be some exceptions to exempt these taxes based on location specific,customers specific etcc., eg: In Himachal pradesh or Arunachal Pradesh(not exactly sure about state name in India), there are tax exemption or levy of tax exemption. This requires classifications within taxes applicable.

Tax types:- as stated in your example (input & output tax). Any procurements/services rcvd would be liable for paying tax( for some there are exemptions) & services provided/ goods sold tax should be charged from the respective business partners. Complete business transaction such differentiated/identified with tax types..

hope it helps

Regards,

Reazuddin MD