Service Tax 10.3% + Vat 5 Tax code

Hi Expert,
I have to make PO for Licenses Purchase which include two Tax component.
Service Tax 10.3% & Vat 5%.
Service Tax is Applicable on Basic
Vat Is applicable on Basis + Service Tax
Service Tax & Vat both are refundable
In our system we don't have Tax Code for this, Please help me with step how to create the Tax Code.
Scenario
     Nos     = 100
     Rate     = 200
     Basis = 20000
Service Tax 10.30% =      2060
Total      =      22060
Vat      5%     = 1103
Final Amt      = 23163
Regards,
GHS

Hi
It is possible to have the scenario in place. The Service Tax would be calculated @ 10.3%. You configure the service tax for india as per SAP Note 921634. There after total this up in a sub step. There after, calculate Excise Duty on Base Amounts and total them up. On this base, calculate VAT, CST, Additional VAT and Surcharge on VAT.
Regards
Sanil Bhandari

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Hi Amit,
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[http://help.sap.com/saphelp_47x200/helpdata/en/a3/1f2f38e4c1f605e10000009b38f8cf/frameset.htm]
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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.
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It 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

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hses 1% 5
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Hi,
This might be helpful
Link:[Tax Break up|https://websmp208.sap-ag.de/~sapdownload/011000358700004326202006E/HowToTaxBreakup_2004_2B_IN.pdf]
*S-User ID is needed for access

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Hi All,
I have some queation about how to configure the Mexico VAT tax in SAP system.
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Tax Code
Definition
See Tax Codes [Extern].
Use
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Tax code Tax rate (%)
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Tax code Tax rate (%)
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A1 10
A2 15
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Hi SAP Guru's
I am running Report S_ALR_87012357 for VAT Tax report, but the report is displaying the Tax base amount twice on the report. I have observed that, if there is more then one tax code used in the document level (exp: V0, V1) then its displaying the tax base amount repeating the line items, once with the amount and once with the amount and tax value.
please guide me whats wrong with the report or there any issue in document level.
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Hi
Suggest you to ask the help of the ABAPER & Debug the report S_ALR_87012357
Please also check field HWBAS(Tax Base Amount in Local Currency) in Table BSET (Tax Data Document Segment)
Regards
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Edited by: Praveen Chirakkel on Apr 20, 2011 6:13 AM

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from FI , SD point of view (The result is how the accounting entries should happend regarding Taxes)
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Thanking You,
Meera.

Dear,
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However, statutory requirements state:
An advance payment, or deposit, is a proportion of the total selling price that a customer pays before you supply them with goods or services. If you ask for an advance payment, the tax point is whichever of the following happens first:
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It would appear that SAP is not meeting the requirement here. Why doesn't SAP include tax on the downpayment process

Hello,
I don't see how the VAT invoice for down payment is handled in this process.
Could you please explain?
In European countries (since 2004 in France, for example), there is an obligation for suppliers to issue VAT invoices for down payments.
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Assuming that SAP handles the down payment correctly for both cases (goods and services) indicating the right VAT due on the down payment request document, and that DPR document is shared between buyer nad supplier, I imagine that the DPR document could be translated into a VAT invoice, let's say by an e-invoicing provider.
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No tax item exists for tax code O0 in a G/L account item.

while posting the credit memo for sales return accounting document is not created. its shows the error as No tax item exists for tax code O0 in a G/L account item.
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Dear Venkatesh,
1.First check that material wether that is relevent for taxes or not.
Check wether Tax indicator set or not in the material master Sales org data1 or 2
2.Check condition record exists for that material or not
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Murali.
Edited by: Murali Mohan.T on Feb 13, 2008 10:42 AM

Add tax item for a tax code in a G/L account item

How do we add a tax item for a tax code in a G/L account item. Basically we get an error when we release the billing document to accounting like
"Tax statement item missing for tax code"
Diagnosis
No tax item exists for tax code O0 in a G/L account item...
Appreciate any feedback.
- Prakash

Dear Prakash,
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2. Tax percentage maintained in FTXP if tax procedure in formula based & percentage assigned in FV12 if procedure is condition based against the identified condition type
3. GL asignement in OB40 for auto posting against the account keys.
Hope this will solve ur problem.
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Ajay

How to create VAT tax condition in Purchase order

Hi Experts,
My client has a requirement to put VAT (Value added tax) as condition in the PO. There shall be two different condition one for VAT deductable and the other for VAT non deductable.
The VAT deductable should have its impact at the time of MIRO as recoverable condition type.
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MG

Hi Moharghosh,
Go to - Spro->Financial Accounting (New)->Financial Accounting Global Settings (New)->Tax on Sales/Purchases->Basic Settings->Check Calculation Procedure->Define Condition Types
here define two condition types for VAT Deductible and VAT Non deductible.
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Please make sure that you assign the exact transaction event key under Account Key field in Tax Procedure against VAT Dedu. and VAT non Dedu..
For VAT Non Deductible - You can use NVV.
For VAT Deductible you can create your own transaction event key in the below path - Spro->Financial Accounting (New)->Financial Accounting Global Settings (New)->Tax on Sales/Purchases->Basic Settings->Check and Change Settings for Tax Processing
Hope this will help you.
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Taxes percentage are frequently change in Indian business and create new input tax codes for updating the same changes in PO.
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Thanks in advance.
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Shatrughan Singh

Hi,
Tax code creation required or not-Depends on which access sequence (JST1 or MWST ) used in your tax procedure.
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VAT Tax determination- question about "Requirement" for Table-Is mandatory?

Hi everybody,
I am having problems to determine the appropriate VAT tax percent in some cases in Mexico.
In Mexico for billing at the border with other countries the VAT tax percent is 11% and for billing inside the country the VAT tax percent is 16%. For determine the VAT tax percent the sequence access is MWST and is assigned to the condition type MWST. For cover the border cases we create a table 989 with the fields: Distribution Channel/Plant and VK11 is fill out with this information. With these parameters is possible to determine successfully the VAT percent of 11% at border sales point.
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I do not know if the problem is the requirement number 7- Domestic Business, but if I change for the requirement 8- Export Business then the opposite is occurring. For US customers the VAT tax percent is determinate successfully and for MX customers not, because the fields of the u201Crequirement u201Care not filled.
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OK I think I understand but here is where I am at now. I originally created a regulation that requires a license when shipping to certain countries out of the EU. I set the regulation as an Export reg did all the necessary config and was able to assign licenses automatically where needed.
Has I was testing the solution I could not find sales docs or deliveries for some of the materials and finally found out they are being moved on NB PO's.
So I changed the reg to include imports etc., classified with import control class etc. but I am seeing a couple things that don't make sense and tells me my config isn't quite right.
I finally do see that the system at least recognizes the new legal reg in the screening now. before this it had not. But it is still telling me it can't find any relevant country.
The other thing the document itself only shows under Display Existing Export Documents even though in the log it says it's an import document and when I go to the Import log there is no data.
Before I realized there was a note to change the Import to export on transfer I assigned the PO types to export orders and I am thinking that's why they are showing in the export list but I woul have tought that it would say it's an export doc which it doesn't.
Any ideas?

VAT tax rate question --invoices

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I have figured it out that there were was extra record with Active_flag = 'N'
Cheers

Service Tax 10.3% + Vat 5 Tax code

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