Sales Tax Collection

Dear Experts,
We are using SD, MM, LE & FI modules in Bangladesh. In customer master we are taking tax Category MWST & Tax Classification "0". Now as per Govt. Tax we need to collect sales Tax BDT 400 per sales order and pay the same to tax authority. Now can you please advice me step by step how can I configure this, so that in every Sales order this charge can come automatically without selecting any item category.
Thanks in advance and your suggestion will be highly appreciated.
Best Regards.
Ripon Kumar Paul

Tax we need to collect sales Tax BDT 400 per sales order and pay the same to tax authority.
Just clarify my understanding, you mean to say, BDT 400 is collected from each sales order, irrespective of net value of the sales order and not dependent on material.
or
Turnover tax at the rate of 4% is leviable where annual turnover is less than BDT 2 million
As I know, the standard tax rate for VAT is 15% for all taxable goods and services.
If in case of former, you can have this tax condition type at header condition.
So, make sure in follow SPRO path you maintain customer data only for the tax condition type
IMG - SD - Basic Functions - Tax determination - Maintain taxes only for customer data(TCode OVK3)
Further you might need to have need routine for Alt Base Value.
The coding for routine can have
xkwert = 400
And even you can have default tax code in the logic.
Make sure you don't have access sequence to the tax condition type.
As already suggested, your condition type should have,
maintain
- Calculation type - B (Fixed amount)
- Condition class B (Prices).
Then assign the newly created routine in Alt base value as per your requirement in pricing procedure.
In case of any concern or doubt, do revert back.
Regards
JP

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Tax Collected at source for Scrap sales in India

Hi Experts,
We are implementing the scrap sales process to our client. So we need to configure the "tax collected at source" process. We have configured the following steps as per the OSS Note specified for TCS:
1. Define Withholding Tax key (206C)
2. Define Withholding Tax type
3. Create the access sequence for withholding for TCS in SD
(Copy the existing access sequence J1AW and create the new access sequence)
4. Create condition types corresponding to Tax collected at Source in SD
5. Assign withholding tax types to SD condition types
6. Define withholding tax codes
7. Assign GL accounts for withholding tax types
8. Add TCS conditions in pricing procedure
9. creating non statistical new condition types and added them to the SD pricing procedure.
10.Create the account keys for non statistical condition types and assign them in the pricing procedure.
11. assign the G/L accounts for the new account keys in VKOA.
after this when we try to post the invoice we get the error as "posting keys are missing for the transaction ZTC" (ZTC is our account key).
To solve this error we have made the configuration for this account key in OBCN and then in OB40. So the previous error was resolved.
But after that we are getting the error as tax code is not defined in ZTAXIN procedure.
Please guide us how to resolve this issue and also suggest us how to post the values in to the Withholding tax related GL accounts.
Any help will be greatly appreciated.
Thanks & regards
Nag

Dear Experts,
THanks for your feedback.
Just for your information we are using the calculation procedure ZTAXIN (Copy of TAXINN). In this scenario, for example we are using the Tax code as "A0". This tax code is already assigned in the VK11 against TCS COndition type JTCS as per OSS Note.
But after that also we are facing this issue. Due to this the Accounting entry in SD also not getting posted nor in Withholding tax related GL accounts also.
ALso please suggest us how to get the TCS Certificate
Warm REgards,
Nag

Tax Collected at Source on Scarp Sales

Hi Gurus,
Can anyone help me with configuration and steps for Tax Collected at Source on Scarp Sales
Regards,
Harmees

The config is very much similar to TDS that we do for a vendor.
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P O I N T S
Cheers!

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I see that I can add a single state tax code to a single product, but I need each of our 56 products to be available in all 50 states, all of which have a different rate.
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I have not been able to find any way to set up the Installment Plan configuration to do such a thing. The Terms of Payment refer to the total Invoice amount.
Has anyone here be able to accomplish such configuration (without doing custom coding in a User Exit)?
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I have already set up the installment plan in OBB9 with 6 entries (1 - 6) for my IP Payment Term of IPM1. I have the percentages setup as 16.67 for each of the installments and the last set at 16.65 (equaling 100%).
The problem with Sales Tax and Freight is that you can not simply assign an arbitrary percentage to the 1st installment (for example make the 1st installment 25% and break up the remaining 5 installments fromt he other 75%).
We need to make sure that the first Installment from the customer is for the Sales Tax, the Freight, and exactly 1/6 of the material cost (if it is a 6 month payment plan).
I have activated User Exit EXIT_SAPLV60B_007 to intercept table generation of the installment plan that is sent to Accounting to fix this problem. Now the Accounting document connected with the customer invoice is correct. My next step is to fix the SmartForm print of the Installment Plan on the customer's Invoice.

Need to change sales tax from point of sale to point of delivery

Hi all,
Recently the tax laws were changed such that sales tax is to be collected based on where the product will be delivered to (rather then where the product was sold from).
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Now we need to shift that so that a sales can still be made from a division/sales office, but the collected tax is based on where the product will be delivered to.
I'm sure there is a way to set this up, but I'm at a loss as to where to start.
One of teh options the customer suggested was to have a sales area set up with all the cities and tax codes in it. Then assign that sales area to each of the sales offices. Is this possible? Or do you have to have a separate sales area for each sales office?
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Thanks in advance for your thoughts!
Laurie

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Laurie

Calculation of surcharge on sales tax

hello everyone
how do we calculate SC on sales tax amount
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sales tax say 10%                  10
surcharge say 2% on 10          2
amount to be collected           112

HI,
Calculation of Surcharge use the conditionstype (JIP4)
Reg
Madhu M

Sales tax on online orders

I am unclear on the sales tax situation for online orders of iPads.
Will I be charged sales tax if I order an iPad thru the Apple online store?
If online orders are sales tax free why are there so may people lining up at stores to buy iPads (and other products for that matter) which will end up more expensive?

OzLK wrote:
I am unclear on the sales tax situation for online orders of iPads.
Will I be charged sales tax if I order an iPad thru the Apple online store?
If online orders are sales tax free why are there so may people lining up at stores to buy iPads (and other products for that matter) which will end up more expensive?
Whether or not Apple (or any online merchant) collects and remits sales tax depends to a large extent on whether they have a retail presence in the state (in this case, if there are Apple Stores there). Another factor is whether the company does enough online business there that the state chooses to expend the resources to collect sales taxes even without a retail presence -Amazon.com, for instance, collects sales tax for sales in Tennessee because they do tons of business here and because many of their distributors and shippers use warehouses here which Tennessee has indicated a willingness to seize in lieu of the tax dollars. Consequently Amazon caved in and now collects taxes at the time of sale. Apple already has retail stores here so they collected taxes on my order at the time I placed it.

Sales report: Profit center wise includes net, gross and sales tax URGENT

Helllo Friends,
Please help me on the below report
Client requirement is: Sales report which includes the below
1. Profit center
2. Net sales
3. Sales tax
4. Gross sales
5. Period
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Thanks for your help in advance
Narasim

Hi,
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1. Customer
2. Billinng Document
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4. Billing Type
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Finalize if the client would also like to see the all the discounts, freights, rebate (if any) , taxes (separetly) , exchange rates (exports) and any other condition types, this will save all the modifications in the future.
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Apple iTunes overcharging on sales tax.

I reside in Tennessee where sales tax is 9.25%. I am being charged an extra 2 cents or so in tax on an average album purchase.
Here is the most recent example. I bought Ryan Adam's iTunes Session album at the price of $7.99.
Here's the math:
$7.99 X 1.0925 = $8.729, or, rounded up, $8.73.
iTunes charged me $8.75. Why? It's an extra 2 cents and is an overcharge, no matter the small amount. I've looked at my account and this has happened on every iTunes purchase for at least 5 months. I didn't check back any farther, as obviously something is wrong, unless there is an additional tax I am not aware of.
Can anyone explain this? I don't want to think the worst about Apple, but it's hard not to calculate that 2 cents multiplied by millions is a lot of money. Hopefully, there's another explanation.

I recently noticed the overcharge on Memphis sales tax recently when I bought books as gifts. I contacted customer service and got the "check with your state for the rate" answer. I work in sales tax and know the rate...I have made MANY online purchases that were taxed correctly. It's not that much $$ for one customer, but if you put it all together it would be material. AND if they remit the "correct" amount and COLLECT the "incorrect" amount, which is the way most tax programs work (sales x rate), they may be making a little extra $$ on collecting a few cents on transactions. Frustrating.

Why when I preordered the new Iphone was the tax estimated at plus minus $55 it sould have been about $18. I was told it was based on the full $649 value of the phone, but that's not right. Sales tax is on the purchase price.

Why when I recently preordered the new $199 I phone was the sales tax estimated at +- $55? It should have been +- $18. The supervisor said the tax was on the $649 value, but that's not right as sales tax is charged on the sales amount. What is this charge for?

Complain to your elected officials, they're the one's that write the tax code. I know that in CA and RI, sales tax is collected on the unbundled price(full) of not just the iPhone, but any cell phone.

Integration with Avalara Sales tax system

We want to integrate Avalara Sales tax system with Adobe business catalyst. Is there any SDK available for integrating the Avalara Sales tax with Adobe site catalyst shopping cart and payment gateways. What is the technology platform used for the SDK i.e JAVA, PHP, .NET etc. Please let us know so that we can start estimating the efforts and budget.

Sadly, you can't integrate an external tax calculation system such as
Avalara to retrieve the tax rates and apply them to an order in real time
when collecting the postcode in BC.

India Tax Collection at source as per SAP note issue

Has anyone configured TCS as per SAP note 1168591?
Actually the note speaks about creating withholding tax types for Invoice posting and then the config proceeds with the same. However, as per the law TCS liability is created on advance received or sales whichever is earlier. I have mapped the entire process. But the issue is that Payable account is getting debitted and the offsetting a/c getting creditted. Double TCS is being (debitted)deducted. At time of payment and at time of Sales invoice. We normally receive advance and only then proceed with the sales. How to go ahead? How to pay off from debit a/c? How to close the offsetting accounts?
SAP note does not seem to be complete.
Qick response would be well appreciated.
Regards/

Hi Magnesh,
If you are using the CXS TDS addon, please assign the TDS paid account (i.e. Tax collected by others) in the setup
Administration / Setup/ Financials / G/L Accounts Determination / Sales Tab/ Tax Tab/ TDS Payment A/C
This will solve your problem.
Regards,
Murali

ITunes charges incorrect sales tax

Does iTunes and Apple in general charge you the wrong tax rate? They do for me!
Apple does not have a sales transaction system which recognizes correct sales tax rates. In my case they lump me into a city for sales tax purposes but I live in an unincorporated area (which does have a unique zip+4 number) but they charge me the city sales tax rate. At least when I purchase hardware from Apple to be delivered to our home the phone sales people will adjust the sale price accordingly since they cannot modify the sales tax. But with iTunes there is no hope. I have gotten some response in the past from Apple but nothing ever happens. Now Apple does not even respond. Thus I've given up buying music from Apple.
Apple management has decided they don't want to treat their customers fairly, at least with respect to billing them properly through iTunes.
Note that car dealers and any business that delivers to our house knows the correct sales tax to charege.
If you have this same issue please write to Apple. Perhaps one day they will implement a proper transaction system.

I recently noticed the overcharge on Memphis sales tax recently when I bought books as gifts. I contacted customer service and got the "check with your state for the rate" answer. I work in sales tax and know the rate...I have made MANY online purchases that were taxed correctly. It's not that much $$ for one customer, but if you put it all together it would be material. AND if they remit the "correct" amount and COLLECT the "incorrect" amount, which is the way most tax programs work (sales x rate), they may be making a little extra $$ on collecting a few cents on transactions. Frustrating.

Certificate for Tax collection at source - CIN

Hi SAP Gurus,
Please let me know procedure for config / user steps for Certificate for Tax collection at source upon sale of scrap.
Regards
Dwijendra

You have to implement the following all notes for up to TCS certificate printing, you can find the configuration document in notes
1168591
1224778
1223591
1291522
1314594
1293847
you can get the configuration and process document from following link
https://docs.google.com/fileview?id=0B2LTD27fUjxxODU3YWQ4ZGUtMzA0YS00ZWY1LTkwOGYtYmY1NmNkNGI0MmQx&hl=en
Edited by: Sai Krishna Vallurupalli on Dec 1, 2009 2:24 PM

Sales Tax Collection

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