I have an excisable material and the freight charge (FRA2) for this material.Tax procedure is TAXINN.
My issue is - during MIRO the excise duty is calculated on the material as well as on the freight charges. My client does not want excise duty to be calculated on freight charges.
Do I have to look the config for pricing schema or anything else.
Need your advice...
As per taxation , on Freight there will be always Service Tax, so create a Service Tax code and assign in MIRO with Planned Delivery Cost. If your vendor is same for material as well as Frt, if possible create a new vendor code for Frt as service vendor.