tax exemption for a specific group of customers

[former_member405498]

Hi SAP gurus,

right now i have configured the system in such a way that the combination of tax clasif.customer/tacx clasifi.of material determinies the sales and service tax.

if its 1-1 its determines sales tax and if its 1-4 service tax.but right now a new requirement came in into picture.the business is saying that we have group of customers for whom the service tax is zero 0%.but this group of customers will be charged the sales tax. what config is necessary to charge 0% service tax to this group.

thanks for your inputs

km

[jignesh_mehta3]

Hello,

You have already defined 1-1 as Sales Tax & 1-4 as Service Tax. (Here first digit is Customer Tax Classification & second Digit is Material tax classification).

Define another Tax Classification for Customer Master say 0 or 2. & Then maintain Condition Records for necessary Combination. (say 2-4 = 0% service tax). (t-code OVK3)

Thanks,

Jignesh Mehta

[former_member405498]

hi Jignesh

Appreciate your time

so do u want me to replace the existing tax classification customer 1 to 2 ?? in that case i think i have to again maintain the condition records of 1-1 sales tax with a 2-1 combination to 14.5 %.Am i right

or is there a way to maintaing 2 different tax classification to the same customer in billing document tab of sales area data of a payer.

thanks

[Former Member]

I understood your requirement.Do as Jignesh suggested.

You check whether any other inputs(Like 0 or 2 with description no tax) are there for the field Customer tax classification in XD01.If existed then you should change the input as 0 or 2 instead of 1.You change it manually for each customer individually,who are not liable for service tax.Here no need to create another condition record for this combination.

If you dont find any other inputs(Like 0 or 2 with description no tax),then you create an entry in T-code OVK3.This by default appears in customer master.

Thank you,

Ravikumar.Ravooru

[former_member405498]

yaa understood what you are saying

if i change it to 0 or 2 then the system will  fetch service tax as 0% for 2-1 combination but it will not fetch sales tax as we are maintaing 1-1 combination for sales tax.that mean if iam changing it to 0 or 2 then i have to maintain condition records again for sales tax for 2-1 combination also right

thanks

[Former Member]

Dear Friend,

You can specify it individual customer master.

If you want to specify tax relevancy for customer group level,then add a key field customer group to that condition table along with customer tax classification and material tax classification,then create condition record for that combination and check how system behaves.

It might work.

Thank you,

Ravikumar.Ravooru

[former_member405498]

Hi Ravi

appreciate your inputs

right now all the customers are grouped in to a single group and i think changing this group  will create another problem with the price list.we maintained pricelist depending upon the customer group G1 to maintaing the price uplift while creating the pricing conditions.we have a custome table which does the price uplift depending on this group although we are not using different group other than G1 as of right now.

any other alternative

thanks

[Lakshmipathi]

You can consider Customer / Material combination for Service Tax so that wherever you maintain condition record, it will fetch.

G. Lakshmipathi

[former_member405498]

Hi Laxmipathi

thanks for your quick response

right now we have cust/material combination as 1-4 and this combination will fetch 12.36% service tax for all the customers.so we have to differentiate a group of customers and fetch Zero 0% for this group.

if i change the customer tax classification it may not fetch anything neither sales nor service tax.

any other alternative

thanks