confusion in VAT configuration

[Former Member]

Hi

I want to configure VAT so for that do i need CIN or I can do it frm financial Acc ---> Finanacial Acc global setting ---> tax on sale/purchase

and give input tax 13.5% for tax code and give the tax code in PO

Pls help

[BijayKumarBarik · Accepted solution]

Hi,

What is business needs for your confusion!

The sales tax will be there in Tax Procedure with following condition types:

JIPS          IN Sales tax setoff

JIPC          IN C Sales tax inv.

JIPL          IN L Sales tax inv.

And each condition types represents such as JIPS is used for VAT-setoff, JIPC is used for VAT-Inventory and JIPL is used for CST-Inventory.

Where condition type JIPC and JIPL assigned to NVV accounting key in Tax Procedure as both are cost are inventoried but the JIPS condition type is assigned to accounting key VS5  in Tax Procedure and  again VS5 assigned to G/L account in OB40 t.code for set off.

Condition record maintained for tax  rate in t.code:FV11 for each condition type with tax code where tax code play artificial key role as created in t.code:FTXP

More refer SCN link:

http://wiki.sdn.sap.com/wiki/display/ERPLO/Difference+between+TAXINJ+and+TAXINN

Regards,

Biju K

[Former Member · Accepted solution]

thanks for your reply but may be i could nt tell u properly what i want exactly ...

Actually i want to configure VAT so i am confused that to configure VAT do i need to configure CIN

or it can be done using financial Acc ---> Finanacial Acc global setting ---> tax on sale/purchase menu path.

pls answer

[BijayKumarBarik · Accepted solution]

Hi,

Yes, you need to configure CIN with your tax procedure as in following path:

SPRO -> Financial Accounting(New) -> Financial Accounting Global Settings (New)  ->Tax on Sales & Purchases ->Basic Setting-> Check Calculation Procedure-> Define Procedure

Refer link for CIN setting:

http://scn.sap.com/message/7902242

Also refer for more!

http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/207dd2ad-bf92-2b10-a88b-e3a4a01ca...

Regards,

Biju K

[Former Member · Accepted solution]

thanks a lot actually i am novice in TAX and CIN thats the problem

but can u tell me why I need CIN for VAT i mean the concept . as i knw CIN for excise and vat is abt to making tax a certain percentage say12.5 so if i put the tax code say s1 with input tax 12.5 at PO . then it should work. also and at MIRO we will have tax amount in VST .

pls say is there is any misconception abt my thinking .

[BijayKumarBarik · Accepted solution]

Hi,

You are running business in which country?

If you do not have excise and have only VAT, then you need also a tax procedure.

NOTE:

You need explore more about all indirect taxes!

Excise duty only on excisable goods manufactured or produced in India.

Central Government will get tax revenue from Income Tax (except on Agricultural Income), Excise (except on alcoholic drinks) and Customs.Central Sales Tax is levied by Central Government while State Sales Tax is levied by individual State Governments.

Regards,

Biju K

[Former Member · Accepted solution]

thanks , actually i only want to configure VAT so i can do it frm financial Acc ---> Finanacial Acc global setting ---> tax on sale/purchase menu path .

and giving tax condition as u said earlier then i no need to configure CIN.

can u help me in one case .i just want to knw. as i have very less knowledge abt this section and and excise . do i need to maintain excise duty on tax code or in pricing of PO

[BijayKumarBarik · Accepted solution]

Hi,

Did you read all above answer and done simulation process in the system!

Refer my 2nd answer of this thread where all details about CIN given, go on configuring in the system and based on purchasing scenario's,simulate all process by having tax code in purchasing document.

Unless you work in the system,nobody can help you to understand.Refer SCN Rules:

http://scn.sap.com/docs/DOC-19331

Regards,

Biju K

[Former Member]

Hi,

yes . You need to configure CIN (in your words). Actually VAT to be used in PO comes from tax code. So you need to configure tax code in FTXP.Then assign this tax code to Country and TAX procedure.  Then the conditions used in this tax code, st VAT 4% need to be maintained in FT11. then go to your tax procedure and check if this tax condition is at proper place or not. usually VAT is to be calculate on Final totals after excise duties addition to base value. If the taxprocess (TAXINN or TAXINJ) is proper from calculations point of view, use this tax code in PO creation. You can see vat calculation if you give tax code configured as above in PO at item level under invoice tab. Then click on taxes tab and cross check the tax calculations.

[Former Member]

If its a Tax Code maintain it in FTXP and if its a Tax condition record maintain it in MEK1.

/Manoj

[Former Member]

i do want to ask u should i need CIN configuration or frm sales and purchase menu path

[Former Member]

CIN Conditions are maintained in FV11 and not in the path in customizing.

/Manoj