To define a tax exception
This functionality is specific for India.
You can define tax exceptions when the derived tax code is
incorrect. A tax exception is a set of transaction details for which you define
a tax code, a tax country and the business partner's tax country , in addition
to the values that result from the standard tax code or tax country derivation.
You can use tax code exceptions to set up tax handling at state
level.
Example if you want to use a specific tax code for purchase transactions between a
specific ship-from state and ship-to state and terms of delivery, you can
define a tax exception.
To define a tax exception, take the following steps:
- Define one or several financial company sets in the Company Sets (tctax0170m000) session.
Include financial companies to the company set in the Companies by Company Set (tctax0171m000) session. Ensure that each financial
company belongs only to one financial company set.
Create a company set that contains only one company to
define the tax exceptions for a single financial company.
-
Define the tax exceptions for the financial company set in
one of the following ways:
- Use the Tax Exceptions by Country (tctax1100m000) session for individual countries. Define
ship-from state and ship-to state codes.
- In the Tax Parameters (tctax0100m000) session, select Exceptions by Country in the first Search Order field.
- Use the Test Tax Model (tctax8100m000) session to test the resultant tax code and tax country
in various situations, and make the necessary adjustments.
- Use Tax Exceptions by Country (tctax1100m000) session to
define exempt tax codes for purchase and sales transactions.