Direct tax and indirect tax

What is the difference between Direct Taxes and indirect Tax. In which Cases those are both are applicable .
please give to me details
regards
RAM

Hi
a direct tax is one paid directly to the government by the persons (juristic or natural) on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax.
an indirect tax or "collected" tax (such as sales tax or value added tax (VAT)); a "collected" tax is one which is collected by intermediaries who turn over the proceeds to the government and file the related tax return.
assign points if useful

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What r the direct and indirect taxes

hi gurus,
can any one pls give me what r the direct and indirect taxes.
Thanks in advance,
RAVI
Moderator: Please, respect SDN rules. As it's not your first warning, upon next violation your user will be banned

Hi,
the Tax tht we Pay directly to Govt is Direct tax and tax tht we pay indirectly is Indirect tax. Ex. Income tax on salaries is direct tax and Sales Tax on Products is a indirect Tax.
Hope you got clarify on the Both type of Taxes.
Thanks
Goutam
Edited by: Goutam78 on May 27, 2011 3:07 PM

Input Tax and Output Tax calculating wrong figures

Hi,
I have created Input Tax and Output Tax codes in SAP.
Input Tax- 3%
Output Tax- 4%
All the configuration is done as required. But when I am posting the Purchase and Sales Invoice, the tax amount is not calculating correctly.
For example:
Input Tax Calculation should be:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29100
Input Tax A/C............ Dr 900 (@3% on 30000)
Input Tax Calculation in SAP:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29126.21
Input Tax A/C............ Dr 873.79 (@3% on 30000)
The same is happening to Output Tax transactions.
Please advice.

My understanding about the Input Tax and Output Tax was wrong. In the issue reported
Input Tax Calculation should be:
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29100
Input Tax A/C............ Dr 900 (@3% on 30000)---my understanding was wrong.
Input Tax 3% should be charged on Expense amount, in this case Rs 30000. But because in the editing option calculate tax on net amount option was not selected, hence SAP was giving the below entry, which is correct as well.
Vendor A/C.............. Cr 30000-
Expense A/C............ Dr 29126.21
Input Tax A/C............ Dr 873.79 (@3% on 29126.21) which is correct.
Hence, the Vendor amount should be Expense + Input Tax= 30000 * 3%=900 + 30000 (expense) = 30900.
Correct Entry should be:
Vendor A/C...............Cr 30900
Expense A/C............Dr 30000
Input Tax A/C............Dr 900
Resolved. Pankaj has given the correct answer.

SD: Service tax and sales tax

Dear All
My client has 3 plants in different states and in to erection activities. while configuring the service tax and sales tax i have created single G/L accounts for the service tax and sales tax based on tax code.
Now my client is asking how can check the service tax payable and sales tax payable as per plant basis.
With my config all service tax will go to one G/L account , VAT will go to one account . how can we able check plant wise details.
Suggest me the way
Regards
Satya

Hello
As per my experience, the GL Acc for Service Tax & VAT can't be same. Check with your client.
Anyways, as per your requirement for VAT
1. Maintain 3 Tax code corresponding to your Plant. This will help you in different Tax Code differnet GL Acc
Say,
V1 - Output TaxCode AP
V2 - Output TaxCode KA
V3 - Output TaxCode TN
2. In Tcode OB40 - in Rules activate Tax code. By doing this, it will activate TAX CODE & ACCOUNT in account section.
With you can maintain,
V1 - 3888001
V2 - 3888002
V3 - 3888003
3. Maintain access sequence Country/Plant/PlntRegion/TaxCl1Cust/TaxCl1Mat. in Tax Condition Type.
Then maintain condition record (VK11) for your VAT.
Say,
Country - Plant- PlntRegion - TaxCl1Cust - TaxCl1Mat.
IN - 3010 - AP - 01 - 01 - 4 % - V1
IN - 3020 - KA - 01 - 01 - 4 % - V2
IN - 3030 - TN - 01 - 01 - 4 % - V3
Similarly, you can do for Service tax also.
Thanks & Regards
JP

Use Tax and Sales Tax

Hi ,
I want to know exactly what is use tax and Sales Tax. and how it is effects the business process if Use tax or sales tax is used.
Thanks

Sales tax is applicable to Sales within a state. Use tax is applicable on purchase from other state.
It is clearly explained in SAP Library. Follow the link attached below:
http://help.sap.com/saphelp_47x200/helpdata/en/e6/149e36d10e057ee10000009b38f889/frameset.htm
Thanks
Palani

Service Tax and Sales Tax-India

In SAP how we can enter both Service Tax and Sales tax in single invoice. Is there is any option to enter both tax code in a single invoice?

Hi
For certain type of Vendor Invoices, both service tax and VAT is applicable in India. This can be done with the help of your tax procedure, where in you calculate service tax on Base Amount and VAT on the BASE AMOUNT plus Excise, if applicable. You need to create a single tax code like that and maintain the suitable condition records. I guess the standard TAX PROCEDURE TAXINN also takes care of this requirement.
Regards
Sanil

Direct procurement and Indirect Procurement in SAP AFS

Hi,
Can you diffrentiate between Direct procurement and Indirect Procurement in SAP AFS.
thanks
Aki

Hi Aki,
Direct Procurement
Raw Material and Production Goods
Order Qty: Large
Value: Industry specific (Like shirt in apparel industry)
Direct procurement supports the conversion of planned requirements to purchase orders.
Primary Processes-Direct Procurement
1. Determination of the materials and services required.
2. Create requisition.
3. Request for the quotation.
4. Quotation Management.
5. Vendor selection.
6. Create Purchase Order.
7. Goods Receipt and Invoice Receipt.
8. Invoice Verification/ Vendor Payment.
Indirect Procurement
Maintenance, Repair and Operating (MRO) Supplies
Order Qty: Low
Value: Generic (Machine Spare Parts in any industry)
Indirect procurement supports the purchasing of indirect materials and subcontracting.
This process can be dealt with using standard functions such as material requirements planning, purchase requisition, stock transport order, transportation planning and the handling of internal deliveries.
The cross-plant, internal procurement of materials can be carried out within one company code (intercompany) or by using several company codes (cross company).
Primary Processes-Indirect Procurement
1. Requisitioning
2. Purchase Order Management
3. Receiving
4. Financial Settlement
Hope it helps.
Regards,
Anirban Roy

Direct Purchasing and Indirect Purchasing in AP ?

Hi Experts
Please let me know what is direct purcdahsing and Indirect purchasing inlcuding the T codes and what are the implications in both cases on FI?
Thanks in advance and points assigned accordingly.
Meenakshi.N

Dear Meenakshi,
We can relate indirect purchasing & direct purchasing to PO based material procurement & with out PO based procurement resp.
In case of indirect purchasing, a procurement cycle starts from generating the PR -> PO -> Goods receipt -> Invoice verification.
Where as in direct purchasing no PO is generated & invoicing is done directly in FI.
Hope this of help to u.
Regards,
Ajay

Direct Procurement and Indirect Procurement

Please explain the different between direct procurement and Indirect procurement??

Hi,
Direct Procurement
Raw Material and Production Goods
Order Qty: Large
Value: Industry specific (Like shirt in apparel industry)
Direct procurement supports the conversion of planned requirements to purchase orders.
Primary Processes-Direct Procurement
1. Determination of the materials and services required.
2. Create requisition.
3. Request for the quotation.
4. Quotation Management.
5. Vendor selection.
6. Create Purchase Order.
7. Goods Receipt and Invoice Receipt.
8. Invoice Verification/ Vendor Payment.
Indirect Procurement
Maintenance, Repair and Operating (MRO) Supplies
Order Qty: Low
Value: Generic (Machine Spare Parts in any industry)
Indirect procurement supports the purchasing of indirect materials and subcontracting.
This process can be dealt with using standard functions such as material requirements planning, purchase requisition, stock transport order, transportation planning and the handling of internal deliveries.
The cross-plant, internal procurement of materials can be carried out within one company code (intercompany) or by using several company codes (cross company).
Primary Processes-Indirect Procurement
1. Requisitioning
2. Purchase Order Management
3. Receiving
4. Financial Settlement
Hope it helps.
Regards
KK

Direct material and indirect material

please explain the what is direct material and indirect material and its different between them

Hi.
Direct materils: These material are bulkly needed and regularly needed for that orgnization to have their end product. these materials usually raw materials ....
Indirect materials: these materils are needed with direct materlias for the manufacture or to produce end product.
Ex: If your orgn's is cement Industry.
Direct materials: Silica Sand. etc..
Indirect matrials:BAG. Gypisum.....
Hope you are Understand with these example...
Regards
S B H

What is direct PO and indirect PO?

Dear Gurus,
What is direct PO and indirect PO?
Thanks in advance..

Hello,
Direct materials are used directly in the production process and thus have influence on the value of the final good. This material is mostly held in stock and needs to be kept in inventory management.
Indirect material, also known as MRO material, could be office supplies or machine parts, for example. In most cases, indirect material is characterized by high-volume and low-dollar transactions
Ordering a direct material means ordering a product that will be received into stock. Account Assignment information is blank at the time of creating purchase order whereas for Indirect PO, Account Assignment is mentioned as appropriate K or F (Cost center, order, WBS etc.)
Hope this helps.
Ashutosh

What is direct procurement and indirect procurement?

Dear Gurus,
What is What is direct procurement and indirect procurement from purchasing point of view.
Pls briefly explain with examples.
Thanks in advance..

Direct procurement. Direct categories are all goods purchased by the company which directly enter into the production process of that company. For the food industry as an example, ingredients and packaging will be the key direct procurement categories.
Indirect Procurement. Indirect categories are all the goods and services that are bought by the company to enable its activity. This entails a wide scope, including marketing related services (media buying, agencies), IT related services (hardware, software), HR related services (recruitment agencies, training), facilities management and office services (Telecoms, furniture, cleaning, catering, printers), or utilities (gas, electricity, water)...etc
Regards
Lakshminath Gunda

Tax and W Tax tabs uneditable for fb60 transaction

Dear All,
I have a requirement to make the TAX and WITH HOlDING TAX TABS uneditable in FB60 transaction for specific company codes.
Kindly guide, how this can be achieved.
Thanks
Vinda

Hi:
It is not possible to disable them specifically for a company code. However you can disable these using SHD0 or alternatively you can control it via settings in
SPRO....Financial Accounting.....Financial Accounting Global Settings....WHT....Extended WHT ....Calculations....Define WHT for payment postings...Select Tax code and in control data you can them.
For a specific co code it will not be possible.
Regards

Getting direct reporting and indirect reporting employee

Hi,
In one of my development, their is a requirement to have a screen of type Tcode PPMDT.
My screen will be having tab strip for direct and indirect employee and on both tabs org structure will be displayed.
I am using function module RH_STRUC_GET to get the org structure details. I need to know the logic of separating direct reporting employee from indirect reporting employee from the data returned from function module.
Thanks
Vishal Kapoor

Hi,
In one of my development, their is a requirement to have a screen of type Tcode PPMDT.
My screen will be having tab strip for direct and indirect employee and on both tabs org structure will be displayed.
I am using function module RH_STRUC_GET to get the org structure details. I need to know the logic of separating direct reporting employee from indirect reporting employee from the data returned from function module.
Thanks
Vishal Kapoor

Purchase Order with Service Tax and Sales Tax both

Dear Sir,
We have a scenario where we have to make a Purchase Order for buying some Software . In the PO , we need to mention Service-Tax as well as Sales-Tax both . Pl guide us as whether it is possible to have such condition available in SAP , if yes then what procedure need to be followed .
As at present , we can not charge Service Tax in the PO against the Material Purchase . Service Tax can be charged only against the Services being purchased .
Pl guide us .
With Thanks and Regards
B Mittal

Hi
If you are talking about a MM pricing procedure create two condition types by copying a standard ( take RAOO and then change the Plus/minus to " Positive" there by u can include this in your PO print as well.
regards
Mahesh

Direct tax and indirect tax

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