VAT - Deductible and Non Deductible

Hello Experts,
How does the SAP treat VAT Condition if it is deductible and if non deductible.
Also how does the system load the values of certain conditions to the materials (Stock), what is the factor responsible for the same.
Waht are the accounting entries that are passed during MIRO ( ref to various prcing conditions.)
Best Regards,
Bhasker

Hi ,
You can use JVRD condition type for deductable and JVRN for Non deductable.
If u use JVRN, at the time of GR it will be added to ur material cost. and in MIRO also the same postings as CST.

Similar Messages

  • Deductible and non-deductible tax in CIN???

    Hi experts
    Can anybody explain me about deductible and non-deductible tax  in CIN.
    Explain me with clear example from purchasing with excise duty point of view .
    With some example of duty with some amount .
    Thanks
    SAP-MM

    Hi,
    Deductable Tax :- It is not part of your inventory...You have give Separate G/L in T code OB40.
    Non Deducatable Tax :-  Part of yout inventory. No Separate G/L.
    Supppose PO 10 Qty @ 10  = 100 Rs
    Tax 4% Vat = 4
    Total 104.
    Now In Case of Dedutable at Time of GR , GR/IR      100 Cr
                                                                        Stock       100 Dr
    At time of Excise Posting
                                        Cenvat Account        4  Dr.
                                        Cenvat Clearing           4   Cr.
    Non Deducatable        GR/IR         104 Cr
                                        Stock         104 Dr
    The Following Conditions Falls in both Category as
    Deduct able tax:-
              JMOP    - IN BED Settoff %
              JEC1     - A/P Edu. Cess Settoff
              JSEP     - IN A/P H Ecess Setoff
              JVRD   - A/P VAT RM Deductable
    SETOFF Must Be Maintained:-
    JMX1 --     IN: A/P BED setoff
    JEX1 ---      Ecess Setoff Sta
    JHX1     IN: A/P SECess SOTot
    Non Deductable Tax:-
                             JMIP    - IN BED Inventory
                             JEC2   - A/P Ecess Inventory
                             JSEI   - IN A/P H Cess Inventory
                            JIPC  - IN C Sales Tax INV
                             JVRN u2013 A/P VAT RM Non-Ded.
    Condition For CVD in CIN :-
                             JCV1    - IN CVD e.g. 14%
                             JECV   - IN CVD Prim Edu e.g. 2%
                             J1CV  - IN CVD Sec Edu e.g. 1 %
    Hope Help U !
    Regards,
    Pardeep malik

  • Deductible and non-deductible tax components

    Hi
    How to make condition type in tax procedure deductible and non-deductible ?
    Regards
    UMAPATHY.M

    Hello Umapathy,
    This is not the Tax procedure condition which decide, if it is deductable or non-deductable value. It is tax code which you define in TCode "FTXP".
    You should select the correct condition while creating the Tax code.
    Hope this information will help you.
    Cheers,
    Manish Jindal

  • Taxes: Deductible and non-deductible

    All SAP Gurus,
    What is the difference between Deductible and non-deductible taxes?
    Regards,

    hi
    In case of some materials, the tax paid on purchase of  items can be availed back from the goverment, This is called deductible tax. Here tax portion is not loaded to material inventory, It is posted to a separete GL account as per the config and later stage it will be cleared-off by finance
    In case of non-deductible tax, the tax amount will be loaded to material inventory. Here company can not claim this amount back from govt.
    regarding configuration, u have to define a new account key in case of deductible tax and assign gl accounts
    in case of non-deductible tax u can use SAP standard key NVV
    regards
    kunal

  • Difference between Deductible and Non Deductible tax

    Hi All,
    Could you please explain me the difference between deductible tax and non deductible tax and when to which type of tax. Also please kindly explain with an example.
    I know that this would consume some valuable time of urs, but please kindly explain me this.
    Thanks in advance
    DSK.

    Hi
    In some countries, u can take credit for tax paid i.e. Tax vatable/deductible - in this case the tax amount is debited to a asset gl account and then later set off with ur tax payable
    and for some taxes it might be non-vatable/non deductible - in which case the same would then be added to the inventory/expense
    The settings for this would be done under tax conditions in MM
    Thank You,

  • Deductible and Non Deductible Amount tax codes.

    Dear MM Gurus,
    Since I have a little doubt even though if you are busy I had to disturb you, by asking this. Please make your time to give me some clarification.
    01     EDECSHECS(DED) +VAT 4% - (Ded)
    02     EDECSHECS( DED) +VAT 12.5% - (Ded)
    03     EDECSHECS(DED) +VAT 4% - (Non Ded)
    04     EDECSHECS(DED) +VAT 12.5% - (Non Ded)
    05     EDECSHECS(DED) +CST 2%
    06     EDECSHECS(DED) +CST 4%
    07     Zero ED + VAT 4% - (Ded)
    08     Zero ED + VAT 4% - (NON Ded)
    09     Zero ED + VAT 12.5% - (Ded)
    10     Zero ED + VAT 12.5% - (NON Ded)
    11     Zero ED + CST 2%
    12     Zero ED + CST 4%
    13     EDECSHECS(NON DED)+VAT 4% -( Non Ded)
    14     EDECSHECS(NON DED)+VAT 12.5% -( Non Ded)
    15     EDECSHECS+VAT 4% - Cap Ded
    16     EDECSHECS+VAT 12.5% - Cap Ded
    17     Zero ED + VAT 4% - CAP(Non  Ded)
    18            Zero ED + VAT 12.5% - (CAP Ded)
    Suppose Tax codes are 01 and 02 where Excise duties are Deductible :
    And 13 and 14  which are Non-Deductible.
    Supppose if I use 01 and 02 which are deductible , I would maintain the condition record and GR is made and if MIRO is posted ModVat amounts would go to Modvat clearing Account.
    But for which ModVat is not available , do I need to maintain the separate condition like we maintain in FV11.   When the effect of Non Deductible Amount will come ?
    If I maintain the condition records for the above where the modvat is not available  then there would be no difference between Ded and Nondeductible.
    Because if I maintain the condition records for both ded and non ded both will be same.
    Where and at what stage will I get the difference between the ?
    Because My report requirement is
    They want the Landed cost based on Modvat credit and VAT credit available or not.
    Suppose :   Base Amt :               100
                      EDECSSECS:     14.42
                      Freight       :                20
                                      Total Value amounts to   134.42
    If Modvat credit is available : 134.42-14.42=120 ( for Tax Codes 01& 02)
    If Modvat credit is available  : 120.0+14.42 =  134.42 ( for Tax codes 13 &14)
    I am struck. Even though I saw by testing but I am little bit confused.
    Please let me in brief in reply so that I could do this report with your guidance.
    Thanks &  Regards,
    Girish.C.M.

    Ok

  • Deductible and Non deductible Taxes

    Hi all,
    As there are two types are taxes  1. Deductible taxes 2. Non deductible taxes.
    If i am right we calculate the deductible taxes using the tax calculation taxes.
    But if the tax is non deductible  how we handle it. Means do we maintain the Non Ded- tax condition types directly in the pricing procedure.
    Or by some other way they are captured  to NAVS/.NAVM condition types.If so how?

    Hi Sherya
    Dedcutible Tax - where you can take the cenvat credit.
    Non Deductible Tax - the tax amount will be get loaded into the stock account.
    Duty which you can not claim i mean values which are against Non deductible conditions flows in to NAVS /NAVM condition type e.g. CST which you can not claim so this CST value will flow into NAVS Condition type.So In pricing schema it will help you to get the total amount in the PO.
    To flow the value into the NAVS/NAVM you have to define the value in subtotal column of Pricing procedure  against these condition type
    i think that is 5 or 6 just check it out
    I hope this will get you clear
    Thanks

  • Dedutible and non deductible tax cin

    Hi,
    Can any one explain me what are the deductible and non deductible taxes in case of vat .
    how we can configure these settings.
    regards
    veknkat

    In case of some materials, the VAT paid on purchase of these items can be availed back from the goverment,  This is called deductible tax.  Here VAT portion is not loaded to material inventory,  It is posted to a separete GL account as per the config and later stage it will be cleared-off by finance
    In case of non-deductible VAT, the VAT amount will be loaded to material inventory.  Here company can not claim this amount back from govt.
    regarding configuration, u have to define a new account key in case of deductible tax and assign gl accounts
    in case of non-deductible tax u can use SAP standard key NVV
    hope this clarifies ur doubt
    award points

  • Total Tax and Non-Deductible column in Tax report

    Hi all,
    My client is using AU/NZ localization.  We need to customise a Tax report based on existing Tax Report in Financal Report-> Accounting> Tax> Tax Report.
    Does anyone know where to pull the information for colum "Total Tax" and "Non-Deductible"?
    When I look at table CSI4, CSV4, ATX1, VRT1, OVTR, they are all empty.  In addition, I can't find these information in JDT1 as well.
    Appreciate your advice.

    Shwu -
    You cannot pull the tax informatin and non-taxable dollars for a single BP - it would all need to be calculated from invoices and credit memos (at least that is the direction we took).
    You can (i.e. for customers) use calculations and sums with the OINV and INV1 tables - they both have the field of VatSum, I believe.  OINV has DocTotal and INV1 has LineTotal that you can use.  Getting the right calculation with those sums depends a lot on how your customer has determined tax for the BPs (i.e. freight is/is not taxable, discounts, various taxing entities, etc...).
    I do not have the exact SQL in front of me, but I remember something like the following being the key calculation...
    OINV.DocTotal minus the sum of INV1.LineTotals and minus the sum of INV1.VatSums = Non-Taxable  (with my customer it ended up being a lot of freight appearing as non-taxable).  So $1,014.00 (DocTotal) minus $1,000.00 (sum of LineTotal) = $14.00 then $14 minus $9.00 (sum of LineVatSum) = $5.00 as Non-taxable.
    If you want to have the taxing entities to show, then it is a matter of joining in other tables (OSTA, etc...)
    Try writing some SQL in the Demo System SAP provides first - just to get an idea of how it can go...
    Good Luck - that is about as far as I can take you - Zal

  • Non-deductible tax configuration

    Hello,
    How to configure non-deductible cost? Is it something we can configure with certain percentages.
    I did search other threads regarding this issue and found below solution.
    1. Open Administration -> Setup -> Financial -> Tax -> Tax Type
    2. Double Click on the row 'tax @4%' which opens, "Define Values for Tax Attribute Window:"
    3. In this window, in 'Non Deductible %' give 100.
    4. Save and Close this window.
    But not sure which path or transaction code I can use to do above settings. 
    Best Regards,
    Tapan
    Best Regards

    Hi Ravi,
    Thanks for your valuable help.
    If we assign same GL account in account key VST (input tax) and NAV (non-deductible input tax) , then how can we specify the deductible and non deductible amount in Balance Sheet.
    I have test below scenario.
    Tax code K4 - 19% as Input Tax and 40% as non-deductible input tax.
    So I got below entry.
    Vendor - 1000 Cr
    Inventory                  628.93 Dr
    Vat (GL a/c X)          119.50 Dr
    Vat (GL a/c X)             251.57 Dr
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    Regards,
    Tapan

  • CST and VAT amount (non deductible taxe) is debiting in the purchase price

    Hi
    I am facing some problem in migo FI documents
    MY client is maintaining standard price for raw materials
    While doing GR in MIGO CST and VAT ,both are non deductible taxes, is debiting in purchase price variance and crediting in GR/IR
    The above said taxes are not debiting in raw material account now
    I had already done all the settings in OBCN like tick mark, posting indicator and 3 Distribute to relevant expense/revenue items etc.,
    but still the taxes are debiting in variance account. We are maintaining pricing procedure as TAXINJ
    plz give your suggestions how to solve the problem.

    Hi
    If you have maintained a Standard proce control in the material master, the non deductible taxes will not post into the material account, you need to maintain a moving average price control for the material to get the non deductible taxes posted.
    Price variance account is trigerred due the reason as sytem is trying to post it on to the material and you maintained it as standard price, so sytem cannot add to the material, so it posts the amount in PP account.
    Change price control from S to V, you r issue will be solved
    Thanks & Regards
    Kishore

  • CST and VAT  amount (non deductible) is debiting in the purchase price

    Hi
              1)     We are maintaining standard price as price index
              2)     Pricing procedure as TAXINJ
              3)     While GR the CST and VAT  amount (non deductible) is debiting in the purchase price      
                     variance, and credit in the GR/IR
              4)     Which has to debit in the raw material account
              5)     Is there is any notes for the this
              6)     or any other solution plz send your reply

    HI..
    it is not done in OBq3
    See in OBQ3..you define Pricing procedure.against pricing Procudure you will give the account Key against the condition type in the Pricing Procedure.
    For this Account Key ..you Define it as Detuctable or not in OBCN.
    so it determines whether to add to raw material account or not..
    but see in early post which is also valid even if you have define the sdame in OBCN.
    Hope so it helps
    Regards
    Anjanna

  • TAX value is not triggerring in JVCD, JVRN(VAT non deductible)

    Hi All,
    Tax values are not triggering in JVCD, JVRN even though the non deductible key NVV assigned to it, and but in OB40 NVV key is not there, and calculation type 371 is assigned to it in taxinn procedure
    kindly suggest me the possible reasons..
    regards,
    sanju

    Hi,
    For VAT ,not required to have  calculation type 371 to assigned  in tax procedure for VAT condition types  JVCD, JVRN.
    As VAT to be inventorised, then assignment of  "NVV" acounting key in tax procedure is correct. If  VAT treat as offsetting entry, then need to have an  accounting key (  accounting key can be created in  OBCN) & assigned to VAT condition types  JVCD, JVRN and then assign  G/L account to  accounting key  in OB40.
    NOTE: But why you have two  condition types  JVCD, JVRN for VAT  inventorised,(non deductible)
    Regards,
    Biju K

  • Now to configure Non Deductible VAT in SAP

    Dear Friends,
    I have one specific requirement for non deductible VAT. In this case the VAT amount should be posted to Inventory and credit to VAT payable account to create the liability. We have created the separate tax code and assigned with NVV with Non deductible check mark and posting Indicator 3. But this is not creating any additional accounting entry to crediting the VAP payable account,
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    Your valuable comments are welcome
    Regards,
    Devendran Dhanapal,
    08080265922

    Hi Murali,
    Thank you for your reply. I have included the NVV in the tax proceedure. But I didn't understand the role of VST here. Why should be activate the VST for non deductible. Already I have activated the NVV but not for VST and also the post indicator in VST shows 2. Is this VST plays any role in Non deductible tax??
    Sorry to ask this question, It may seems to be stupid to you.
    Thanks & Regards,
    Devendran

  • VAT and Budgeting - Deductible VAT

    Hi all,
    My customer needs to budget amounts with VAT (deductible+non deductible).
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    Setting deductible tax as non-deductible in tax settings could be the easiest solution, but this does not meet my customer's requirement.
    Would it be enough to solve this requirement  not giving a separate G/L for the deductible VAT?
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