Custom taxes in India
Friends,
We have requirement to charge custom taxes on procurement made from overseas. Any functionality to address this in PO and AP?
DJ
There is BOE (Bill of Entry) functionality in India Localization that will help to apply BOE invoices against receipt when the receipts tax lines have tax type like Customs Duty, Additional Customs Duty. You can record the BOE details using BOE Invoices feature in India Local Payables. This will automate creation of a AP Invoice for the Customs Authority. BOE created through BOE invoices can be applied against a receipt by using the ’ Apply BOE’ form.
For further inputs, you may refer to India Localization user manual.
Hope this helps.
Similar Messages
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Routines for determine the customer tax classification in VF02
Hi
i have to find out how the customer tax classification values is coming in VF02.customer tax classification value should be '0'.but in my case it is coming '1'.
i have to find out ,how the calculations has to be done and where should i modify the value.it is an production support issue.
Please guide me .what are the possible ways to fix the issue.
Regards,
KiranI'm assuming that, the country is India and based on its requirement:
Sales tax is a state government revenue. There are two types of sales taxes, Local sales tax & central sales tax. Local sales tax is intra state whereas CST is inter state.
Example of LST : Point of sale i.e. delivering plant & ship to party are within the same state. The rates are defined by the respective state governments.
Example of CST : The Delivering plant & Ship to party geographic locations are 2 different states. At the point of sales from one state, the ST goes to that state govt. & consignment is despatched to the Ship to party. Once that consignment is received at the ship to party state, sales tax will be levied once the sales is registered there. For this case, the LST that is applicable by the Ship to party further will not be applicable in all probability to be captured in SAP.
Stock transfer : This does not attract any sales tax. The consignment is transferred from one D plant to another D plant irrespective of inter/intra state sales. The invoice that is accompanied with the consignment thus shall not have any final value. It's a zero value invoice, but the basic prices needed to be mentioned.
The selling organisations normally needs to register with the sales tax authority of the respective state to have a warehouse or D plant to avoid the double taxation for their dealers/distributors.
Now, the pricing procedure that is there in 4.7 is Factory sale with formula-JFACT, in which the CST condition type is JIN1 & the LST is probably JIN2. There may be surcharge cond types as well which will calculate the amount on either JIN1 or JIN2.
For config :
1.SPRO > S&D > Basic fn. > Pricing > Pricing control > Define & assign Pric. procedure > Maintain Pric proc.
2. The tax rates are normally driven from the Tax classification of Customer & Material access. To do this config, S&D >Basic fn. > Taxes. You need to include the condition type for country IN in 'Define tax determin rule'.
3. Same path : But go to Tax relevancy of master records where you configure the condition type & options of rates that will flow to these masters. One needs to understand here properly as u need to have unique combinations for picking the sales tax rates. I will try to demonstrate the smallest example. Let's say, the LST rates are 2%,4% & 0%. I will have two options for material master here. 1 for taxable & 2 for not taxable.
For customer master, I will have 1-LST 2%, 2-LST4% & 3-LST0%. When I create master records for LST thru VK11 for JIN2, I will chose the access where the combinations of customer & material tax classifications are available. If this access does not exist create it under an access sequence. But normally this is standard. The condition records will look like,
Cust-Tax classi. Material tax claasi. Rate Tax code
1 1 2% A1
2 1 4% A1
3 1 0% A1
Remember, rates are flown from the tax codes. Tax codes can be created thru T code FTXP. This is normally a FI job.
Hope this info helps
Regards
Manthan. -
Where to maintain TAN number in customer master for India
Where to maintain TAN(Tax Deduction and Collection Account Number number) in customer master for India ?
Hello Rohit,
Where to maintain TAN(Tax Deduction and Collection Account Number number) in customer master for India ?
Go to the T-code XD01 or XD02 and you can enter the TAN details in the CIN Details Tab of the Customer Master record.
Or use the transaction J1ID-->Customer Excise details.
Regards,
Sarthak -
How difficult is it to implement indirect sales tax for India?
Dear All,
What is the level of difficulty to implement indirect sales taxes for India? Is this a low, medium, or high level of difficulty implementation?
Does India offer a nationalization package, and is it necessary to install India's nationalization?
Ultimately, I need to get an estimate for the number of people and days of work involved in order to determine the expected cost.
Kind regards,
MarkHi Mark,
The level of difficulty to implement indirect sales taxes for India is high level of difficulty implementation?
Country India Version is along with ECC. No need to implement any other package.
Depend on the requirement it takes 2-3 months of implementation for CIN. And Two consultants are required to configure this implementation. If A consultant has 2-3 years in the CIN Configuration then 1 Consultant is enough. Cost vary from organization to organization.
Regards,
Srinivas Muthyala
sap fi/co consultant -
Customer Tax Classification : Missing entry screen in customer master
Hi All,
Anyone know if any customizing is required to activate the Customer Tax Classiification entry screen in the Customer Master of Sales Area (BillingT Tab)? I could not enter the customer tax classification as the entry screen doesn't appear in the customer master.Hi,
You have to maintain few settings for this
In OVK1 Enter the TAX CATEGORY for the Country
In the OVK3 transaaction code enter the TAX CLASSIFICATION for the Tax category defined in OVK1
after this assignment try to create the customer master , in the Billing tab the tax classification will appear.
regards,
santosh -
Customer A/c# XXX was earlier marked as "Taxable" but now it is marked as "Exempt for tax". So SAP should not calculate any Sales tax for this customer.
But, when I am trying to create Credit/Debit memo's in T.code: VA01 by using
"Create with reference", for Invoice#YYY.
Then SAP is pulling up the exact Sales tax in Credit/Debit memoPerhaps it is pulling the customer tax info from the originating document (VBAK-TAXK1)
If you create one without reference and it works OK, that is definitely what is happening
Drop me some points if that's it !
Bill -
Employer Quarterly Tax Returns (India)
we are facing 1 very crucial issue which we need to finish it up by today EOD. otherwise Company will be penalized every day some amount. plz advise. at the erliest.
Employer Quarterly Tax Returns (India) for 2012-13 FI for Quarter1 we are doing, total we are having 3 entities. 2 entities we were able to finish it up successfully. but remaining entity when we run the Program it gives below Errors please gurus any can advise..
TABLE_NAME pay_magtape_generic.new_formula
APP-PAY-06881: Error ORA-06502: PL/SQL: numeric or value error: character string buffer too small
ORA-06512: at "APPS.PAY_IN_24Q_ER_RETURNS", line 274
ORA-06512: at line 1
ORA-06512: at "SYS.DBMS_SQL", line 1575
ORA-06512: at "APPS.PAY_MAGTAPE_GENERIC", line 383
ORA-06512: at "APPS.PAY_MAGTAPE_GENERIC", line 828
ORA-06512: at line 1
ORA-06512: at "SYS.DBMS_SQL", line 1575
ORA-06512: at "APPS.PAY_MAG_TAPE", line 14
ORA-06512: at line 1
ORA-06512: at line 1
it would be great if we can able to achieve it today.
Regards,
AniPl post details of OS, database and EBS versions.
For all urgent production issues, pl open an SR with Support. This MOS Doc may be relevant
Employer Quarterly Tax Returns (India) Completed In Error [ID 1285050.1]
HTH
Srini -
Hi All,
A Custom Tax Additions Report is coming up with no data found for a specific book type and a period run.
Does any one know, what could be the reason? Has anyone faced something like this before?
Module is 'FA' and its base report I believe is FAS480.rdf
Thanks,
Chiru
Message was edited by:
Megastar_Chirucheck the following blog and the how to document
Fixes Available for Portal Activity Report
http://wiki.sdn.sap.com/wiki/display/EP/HowtoConfigurePortalActivity+Report -
Dear - All
After defined the customer Tax classification in Customer Master Data- why it isnot coming to my sales order header billing view like 1 2 3 4 .
Tell me what is the best Key combination for acess sequence to mantain the sales tax condition record..Also i have created in customer master data tax classification like zvat ,zcst ,zser and ztcs, can u help and tell me the best key combination(fields) for which will creat condition table and also acess sequence.
thanks
sunilHi sunil
If u want to get Customer Taxes into Sales Order ..Then u have to do
1. Customer Tax Classification in Customer Master
2. U have keep this MWST Condition type in Pricing Procedure
3.. U need to create Condition records for MWST Condition type in VK11
Then u can get Customer tax in your sales order.
Any quries revert me back
Regards
Srinivas. -
China - Custom Tax, VAT Tax Handling
Hi SAP friends
I have the problem of Import custom tax and VAT tax for puchasing.
It is Domestic Sales scenario. Need to purchase material from oversea vendor.
Oversea vendor sell mateiral to China company RMB 100 per PC.
Mainland company needs to pay custom for custom tax 20% and the custom tax is non-deductible. Custom tax is 100*(20%) = RMB 20.
Then, Mainland company needs to pay China government VAT tax(17%),
VAT tax is 100(1+custom tax)(VAT tax)-100 = 100(1.2)(1.17) - 100 = 40.4
So, VAT tax amount = Material price * custom tax * VAT tax
In PO, I use ZOA1 custom condition type to input Cutom tax amount for Custom tax and input Tax code for VAT tax.
When good receipt, RMB 120 post to Material stock account. RMB 100 post to GR/IR. RMB20 post to custom account
It still be fine.
When do LIV, RMB 100 clear GR/IR. RMB 17 post to VAT tax account becasue it use RMB 100 as base amount to calculate VAT tax. RMB117 post to AP vendor account.
Actually, mainland company only pays RMB100 to oversea vendor and the Tax amount should be include Custom amount. Corrrect VAT tax amount is 100(1.2)(1.17) - 100 = 40.4 (use RMB120 as base amount to calculate VAT tax), but not only RMB 17 . But, in LIV payment to vendor now is RMB120. It is not fulfill the requirement of mainland company.
Do anyone have experience about China Import purchasing material. And, would share how to settle the payment of vendor and how to make use (Material price + Custom tax amount) as base amount to calculate VAT tax amount?
Thanks a lot for your help!
MagIt may helpful hint before going to configure.....abt the tax codes..
Value Added Tax (VAT) was implemented in China in 1984. Initially, the tax was levied on 24 specified
items. The need for constructing a socialist market economy system in China resulted in the proclamation
of 'The Provisional Regulation of the People's Republic of China on Value Added Tax' on January 1, 1994.
Value Added Tax in China is one of the important sources of fiscal revenues for the government,
especially the central government. The implementation of VAT is done by the State Administration of
Taxation while the customs collects the import VAT.
..******note this point it may helpful*********
The revenue earned from VAT is divided between the central (75%) and local government (25%).
The list of VAT taxable items and the rates in China can be understood from the following:
Coverage of Collection
Rate
Exportation of goods
Edible vegetable and grain duplicates
Agriculture, forestry, aquatic products, products of animal husbandry
Book, magazines, newspapers
Tap water, cooling, heating, hot air supplying, gas, hot water, natural gas, liquefied petroleum gas,
coal/charcoal products for household use
Selected non-metal mineral products, Selected metal mineral products, coal
Chemical fertilizers, feeds, agricultural machinery, agricultural chemicals, plastic converting film for
farming 13%
Crude oil, mine salt and other goods and services not listed above
17%
VAT in China is payable by individuals as well as enterprises who are associated with selling
merchandise, providing services related to processing, repairing and assembling and import of goods.
VAT Taxpayers in China are categorized into two sections, normal taxpayer and small taxpayer, depending
on the turnover of the goods and services on sale and the accounting system condition.
The amount of VAT payable by the normal taxpayer can be calculated by the following:
Output tax payable for the current period u2013 Input tax payable for the current period = Tax payable
The amount of VAT payable by the small taxpayer is as follows:
Sales amount x Applicable rate = Tax payable
(The applicable rate is 4% for commercial sectors and 6% for others)
Certain items and services are exempted from VAT. These include the following:
u2022 Instruments and equipment imported for direct use in scientific research, experiment and education
u2022 the agricultural production materials as ruled, the self-produced primary agricultural products sold by
Agricultural producing units and individuals
u2022 Imported materials and equipment granted, gifted by foreign governments or international organizations
u2022 Contraceptive medicines and devices
u2022 Articles imported directly by organizations for the disabled for exclusive use by the disabled
u2022 Materials imported directly to support the poverty relief and charity cause donated freely by overseas
natural persons, legal persons and other organizations
u2022 The taxable services provided by individual disabled laborers
u2022 Antique books purchased from the public
Certain reforms have been implemented in particular areas of China in 2004 with regard to the VAT.
chk the website http://www.cabc.org.cn/news/2006-1-19/2006119145600.html -
Derivation rule to determine customer tax classification in COPA
Hi Experts,
Please guide me to complete this assignment.
The requirement is to fetch the material tax classification and customer tax classificaion into COPA through derivation rule.
we can fetch material tax classification through table VBRP.
Please help me to derive customer tax classification( KNVI-TAXKD) through derivation.
Customer tax classification data is available in table KNVI.
But when you consider KNVI table through table lookup it is asking customer, country key and tax category. To define this derivation rule we need tax category values in COPA.
We can get customer and country key but not tax category.
How to bring tax category (KNVI-TATYP)
into COPA to define derivation rule to fetch customer tax classification( KNVI-TAXKD).
Please suggest me if any alternative solution to bring customer tax classification data into COPA.
Points will be assigned to usefull answer.
Thanks in advance.
Regards,
Amar.HI,
The Tax related thing are balance sheet items . which can not be considered at CO-PA.
only revenue item will be considered at Co-pa.
Hope this is clear
With regards
krishna -
Customer tax classification determination(VA02/VF02)
Hi
customer tax classification is detetmined in VA02 with value '0', but where as in VF02 the value is '1'.
but we want customer tax classification value '0' in VF02.what would be the root-cause for this problem.
condition type is MWST and tax code : A4.
waiting for your response.
Regards,
KiranHi
Your pricing procedure should have the CTXJ condition and maintain VK11 condition record for CTXJ with 0% value and maintain the relevant Tax Code in that condition record. Based on this tax code the FTXP record will be hit and the tax values maintained there will be determined in the SD document. You need not maintain the VK11 conditon records for your tax conditions JRC1, JRC2 etc.,
Since you have maintained tax records for the JRC conditons in both VK11 and FTXP, the system might be determining the values twice. You can confirm this point by maintaining two different values for the same condition type (say JRC1) in VK11 and FTXP, create a sales order....and post your observations in the forum.
Thanks,
Ravi -
VAT Number link to Customer tax clasification
Dear All,
Give your some inputs on VAT number and Customer tax classifications for MWST determination in sales order,
Please check sales orders in scenrio's
1. VAT number not given in customer master in general data - Sold to party.
SON - 1 where MWST is 0 %, customer tax classification is "0" condition record found - Sale org/plant/destination country/cust tax clas/mat tax clas
2500/1000/FR/0/1 - 0 %
2. VAT number is given in customer master in general data - Sold to party
SON - 2, Where MWST is 19.6 %, customer tax classification is "1" condition record found - Sale org/plant/destination country/cust tax clas/mat tax clas
2500/1000/FR/1/1 - 19.6 %
Where can i check that link between VAT number and customer tax clasification?
Regards
Ramakrishna.PHi
In fact there is no link between VAT number and customer tax classification. See my explanation below
1. Customer tax classfication is used to determine whether the customer should be taxable or not together with tax codes maintained in FTXP. For e-g Cust tax classification 0 means no tax which is why in your first case there was no tax in the sales order. In your second sales order, cust tax classification was "1" which means full tax and that is the reason your second sales order had outout tax 19.6%. Condition records for taxes are maintained like this (please mind that this is only an example, there could be several access sequences maintained as per the business requirement)....Tax classification 1 then tax code say U1 which means 19.6%, Tax classification 0 then tax code A0 which means 0% tax.
2. Now coming to the VAT number. This is generally filled in the customer master control data to print it on the invoices. VAT number is more of a legal procedure that this is checked when there is a movement of goods. So if you have a look at European invoices, you will find both seller's and buyer's VAT numbers on the invoice. Secondly, VAT number also exempts VAT for the buyer if the both the transaction occurs within the EU and only if the buyer produces VAT number while placing the order or may be before invoicing is done.
Hope this helps
Thanks
Chandra Kiran -
Customer tax exemption is not deduction in 4.7 version?
Dear All,
With reference to customer tax exemption, Washing allowances has to be exempted for the employees. I have created separate exemption wage type for washing allowance. In rule i have mentioned INCTX SEXM 3WSH A but it is not deducting in the exemption.
Regards,
SujeshHI,
1. Create a WT entry in V_T7INA9 & V_T7INT9.
2. Use INCTX SEXM /4CT R.
Hope this helps.
-Param -
I am a graphic designer and I need to buy customized iMac with Retina 5K display with the below specifications:
4.0GHz Quad-core Intel Core i7, Turbo Boost up to 4.4GHz
32GB 1600MHz DDR3 SDRAM - 4x8GB
1TB Fusion Drive
AMD Radeon R9 M295X 4GB GDDR5
Apple Magic Mouse
Apple Wireless Keyboard (English) & User's Guide
AppleCare Protection Plan for iMac - Auto-enroll
Accessory Kit
As Indian Apple site or store does not customize, can apple ship this customized iMac to India? Please help, as I as buyer in India is helpless. I don't mind paying extra for shipping but we need to be able to get this facility especially when Apple doesn't customize here.
And when I am the paying the cost, I would rather pay for an upgraded machine as it is for my work.
Please help.Hi Brett,
Thank you for the reply.
But I know apple store for USA does not ship outside the United States, its just that in India, an iMac cannot be customized. So which Apple store in the world customizes and ships to India? That is the big question here.
Because its not right for apple to customise only for certain countries and where other countries are forced to used the base models / products available only in the stores even when we require the higher configured models especially when our lively hood depends on it.
Please help.
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