Vat deduction from unregistered dealer purchase

[Former Member]

Dear All,

We have a following requirement:-

We are purchasing stores item from unregistered dealer(vendor) Say Rs.100/- . In PO tax type only Gross value is Rs.100/-

GR entry:-  Inventory A/c Dr    100

                 GR/IR       A/c Cr          100

At the time of IR-Invoice Verification following entry is required:-

GR/IR A/c    Dr 100/-

Vendor A/c  Cr   90/-

Vat Payable Cr   10/-

I think by creating a Wht Tax Code for Vat can be best SAP practice.

If any other idea may please be shared if possible in MM module.

Regards,

Alok

[Former Member]

This can be achieved with proper tax code in MIRO and check the entries in simulation before posting , tax which includes VAT

[former_member192897]

What is the tax procedure assigned to your country code. TAXINN or TAXINJ? 

[gtiruvail]

Hello Alok,

If you want to have this set up, then you need to configure taxcodes and assign it to India tax code procedure.  Generally, how it will be done is in one taxcode they will map following important conditions types.

Excise

Education Cess

Secondary Edu Cess

VAT

Surcharge on VAT

Then while creating a PO, assign this particular taxcode there.Hope it helps. Please let me know if you have already created tax procedure for India.