How to create TAX CODE, explanation of TAx %..

Hi guru's
Can anybody explain me , How to create a TAX code(fv11) for below mentioned structure.
16%2%1%VAT 8%DEDUCTIBLE4.5%NON DEDUCTIBLE
.please explain me the 16% stands for what , 2%for what,1% for what…etc
For which type of vendor , and material I want to use this tax code.. and explain what is deductible & non deductible..
URGENt..
Thanks
vicky..

in your tax procedure taxinn
u must have condution tyoe for bed esec higher edcess vat deductable and nondeductable
JMOP     IN: BED setoff %
JEC1     IN Ed Cess Setoff
JSEP     IN:A/P SECess setoff
JVRD     IN VAT Raw Deduc
JVRN     IN VAT Raw Non Deduc
maintain tax persentage in tahat fv11 for that above condition type
JMOP     IN: BED setoff %     16
JEC1     IN Ed Cess Setoff    2
JSEP     IN:A/P SECess setoff  1
JVRD     IN VAT Raw Deduc      8
JVRN     IN VAT Raw Non Deduc  4.5
Deductable means u will get set off against this ie this value will not be added to material cost
and nondeductabe meean that this cost will add to material; cost
go to FV11 put cond type say JMOP
enter
click on plant vendor and material
put plant vendor material number and put persantage 16
in same way do for others
hope issue is solved
reward accordingly
Message was edited by:
        Umakant Bhangale

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