Tax Classification issue in Material Master

[Former Member]

Dear All,

I am facing an issue with tax classification indicators.For domestic sales the indicators should be 1,1 and for exports it should be 0,0 as the export customer is not relevant for taxes and duties too.

When i have uploaded the material master in quality server i was able to see that the tax classification indicators for domestic and exports were coming as 1,1 for domestic and 0,0 for exports under the same sales organization.But in the production server if i am changing for exports the 0,0 is reflecting in domestic also.My question is will it make any difference if i take 1,1 for exports also.

Kindly clarify.

Thanks in advance,

Ramesh.

[jignesh_mehta3 · Accepted solution]

Hello,

For Domestic sales it has to be 1:1 but for Export sales it has to be 0:1.

For Export Customer Tax Classification it will be 0 & for Material it will always be 1 unless it is totally exempt from Taxes, which is generally not the case.

Thanks,

Jignesh Mehta

[suman_sardar2]

Hi Ramesh,

Definitely it will make all the Export Customer as liable for Taxes.

But I need some clarification which you have stated below;

But in the production server if i am changing for exports the 0,0 is reflecting in domestic also.My question is will it make any difference if i take 1,1 for exports also.

If you are changing a Export Customer Tax Classification how the another Customer is going to change?

Can you please elaborate?

Thanks,

Suman

[Former Member]

Dear Suman,

My question was regarding the material master and not with the customer master.As Raj said the tax classification has been set to zero for all the export customers.

Thanks & Regards,

Ramesh.

[Former Member]

Dear Ramesh,

tax clasification of material should be always set to 1,

bcoz  it is not affecting in domestic and export separately,only custtomer tax clasification finalise whether taxable or not.

Regards

raj