tax in india

[Former Member]

Hi Friends,

Could anybody please provide the details about various taxes in india.

I mean what are the taxes are there in india & how much it is charged.

reply would appreciated.

Thanks

[Lakshmipathi]

Dear Shiv Patil

Please check the link

[Taxation|http://finance.locateindia.com/taxation.html]

thanks

G. Lakshmipathi

[Former Member]

Hi Shiv,

CIN is the most nearest config India can have. Considering tax structure, it will have VAT for sales in same state. Generally VAT will be applicable when POE of the goods is in that State. So if POE is Bangalore then Karntaka sales will be VAT. But if sale is in Chennai and sold from Bangalore POE, then CST will come into picture.

Then we have education cess and service tax on top of these two. Also different states have different rates for VAT/CST/Service tax for different goods and services. Hence while defining the tax condition records we cant rely on only one tax classificaation from material master and customer master. We have to define multiple tax classification to identify the correct tax structure for that state.

In my company we dont have CIN, but we use CATT scripts to upload the India orders.

use below for serevice tax

zpse- service charges

zrep- repairing charges

ztrv-to and fro charges

zloc- local conveyance

then total of this will be value for service tax

then give

zser - servicetax 12.5%

zec3-education cess on s.tax @ 2%

jsts- H.edu cess on s.tax @ 1%

then total of above and below is Grand total

Define above conditon types then do pricing procedure, this is the only thing u have to maintain.

Then maintain account keys defined in T.code : OBCN

then goto OB40 and for the account keys created over there for those assign G/L accounts.

And do all configuratin as normal process. that is order to billing. here service related will be order related billing only there iwll be no delivery.

For CIN the types of taxes will be in generic is as defined below:

a) Excise Duty - 16% of the Sale vale

b) Cess Tax - 2 % of the Excise Duty

c) CST - Central Sales tax - 4 % of the taxable value (Sale value + Excise duty + Cess Tax)

d) LST - Local Sales Tax - 5 % of the taxable value (Sale value + Excise duty + Cess Tax)

e) Surcharge - 12% of LST

point d) & e) will not come in case of point c). Similarly point c) will not come in ase of d) and e).

f) VAT of 12% tax will be applicable accordingly as per the state

g) Total Gross invoice value will be sum of all the above.

For each of the above taxes, standard SAP has defined condition types like JIN1, JIN2, JIN4 etc, which can be included in your pricing procedure accordingly.

Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

[Former Member]

Please read thorugh the following link

http://www.indianembassy.org/newsite//Doing_business_In_India/Fiscal_Taxation_system_in_India.asp

[Former Member]

Thanks for good information.

Gave point to you.

Thanks