VAT Calculating on (Service tax + Base Price)

[former_member211706]

Dear Friends,

We are using Tax Procedure TAXINJ

This requirement is for IT Service  Vendor charging Service tax Service Tax@ 12.36% on Basic and  Vat is calculating @5%(on Service Tax + Base price).

Simple calculation

Base value	1000
Service tax	120
Education cess	3.6
Vat	56.18	(1000+120+3.60)
Total payable	1179.78

Now problem in VAT Calculation which  is required to Calculate on Base Price, But now on Service tax + Base price)

Please Suggest

Thank you in advance

Regards

Pulak

[Former Member]

Hi Pulak,

Check SPRO--->Fin acctg--->Global settings--->Tax on sales/purchases--->Basic settings--->Check calculation procedure. There check your tax procedure(TAXINJ) and for the VAT condition type.

There you could have give given base value wrongly. Update it appropriately.

Hope it solves.

Regards,

G.Sethuraman

[former_member211706]

Hi sethu,

My question is can we calculate vat over (base price+ service tax)because in my taxinj procedure no condition type for that.

Regards

Pulak

[Former Member]

Hi Pulak,

If you are assigning it for the first time then how did you manage for vat transactions till now.

Anyway If you havent assigned vat condition type in taxinj, then assign JIP1 and JIP2 in your pricing procedure taxinj in the node which i already have mentioned.

Regards,

G.Sethuraman

[former_member211706]

Hi Sethu,

Vat is calculating over the base price not the service tax price. But in this case vat is calculate base price as well as service tax.

Regards

Pulak

[Former Member]

Hi Pulak,

Create a new condition type vide SPRO--->Fin acctg--->Global settings--->Basic settings--->Check calculation procedure, then assign the base value as Gross+Service tax by adding empty line for sub total in pricing procedure TAXINJ.

Then update the relevant tax code in FTXP.

Test it in the quality client and transport it into production.

Regards,

G.Sethuraman

[msshihab1987]

Hi Friend

System will calculate the tax on the basis of the Condition that you have mentioned in the Tax calculation procedure. So please check the Tax procedure and assign the field from where you wanted to calculate the VAT amount

Please check the attachment, Here i have specified that system should calculate the value from Steps 275 in that case system will calculate the value including service tax.

If i am giving 100 system will calculate on base value, You can choose which ever value you need.

[former_member211706]

Thank you Shihab,

But i didn't find the condition in tax procedure taxinj. Do you have any SAP document in this case.

Please suggest.

[msshihab1987]

Hi Friend,

Firs let us know where exactly you are checking this, Test System or in Real system.

TAXINJ is actually based on formula based not a condition based , if you are in test sysem it is better to copy TAXINN procedure and create new one and assign the tax procedure to country . Once you have copied the tax procedure you can easily change the condition based on your own requirement.

[former_member211706]

Dear Shihab,

I am not able to copy taxinn procedure because i am in Real system.

Regards

Pulak