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

Similar Messages

  • 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
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    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.
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    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
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    JP

  • 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.
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    Sanil

  • 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.
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  • Excise tax and sales tax

    Please give indian taxation and exice information

    Hi
    Pl see following links......
    Taxes:--http://siadipp.nic.in/publicat/invpub/taxation.htm
                http://www.cbec.gov.in/excise/cx-manual/manual/index1.htm

  • Excise invoice and sale tax  applicable  in consignment process

    Hi,
    How excise invoice and sale tax  applicable  in consignment process in below stages--
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    Hi,
    You have to pass JV for 50 picked up items through J1IS. For this you have to create new subtransaction type type and accordingly maintain the G/L in the tax on goods movement settings for acoount determination node.
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  • Excise and Sales Tax/VAT related notes.

    Hi,,
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    Hi Pratap,
    For free goods you have to pay excise duty, that is why i recommend you to follow a new pricing procedure, where the Price Condition type is statistical(to calculate excise) and give payer as self if the excise duty you would  not get from customer,\
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    revert if you require any clarrification.
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  • Tax amount and sales tax code fields not visible in tcode MIR4

    Hi,
    A workflow has been cretaed for cretaing the invoices. Here in SRM invoice, the tax code and Sales tax code fields are not visible in tcode MIR4 though data has been passed while creating it.
    When i am checking the "calculate tax" check box, am able to see these two fields on the MIR4 page.
    Am not able to find the reason for this behaviour. As its working fine for other invoices. This is the case with only SRM invoice.
    Kindly provide your inputs.
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    Regards,
    Razia Shaheen.

    Hello,
    What you are saying is that the Invoice coming from SRM (Via Idoc i supose) is not bringing the tax code? is that it?
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  • 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:
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    Expense A/C............ Dr 29100
    Input Tax A/C............ Dr 900 (@3% on 30000)
    Input Tax Calculation in SAP:
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    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.

  • 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
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    Helllo Friends,
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    4. Gross sales
    5. Period
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  • Sales tax and Labor Tax

    Hello Friends
    We are on ECC6.0
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    Closing ticket no suggestions given

  • TDS and Sales Taxes are Possible with out implementing SD & MM??

    Dear Members,
    Is it possible to generate TDS forms and calculation of Sales Taxes without having MM and SD Modules??
    Under GL we have the options for Taxes in Easy Access Screen..so i hope soo..
    If such things are available pls guide me ..we r in need of this.
    regards,
    shashi

    dear aakash,
    can u explain it detallyy..
    and how to configure it.??
    regards,
    shashi.

  • 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

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