12.

TAXATION
12.1 Taxes on Sales & Purchases
The following are the Taxes, which the company is paying on Sales and Purchases
Sales:
Output Tax: Excise duty payable,
Customs Duty payable,
Cess payable,
SH Cess payable,
VAT payable,
CST payable,
Purchases: Input Tax: Excise duty paid,
Customs Duty Paid,
Cess paid,
VAT paid,
CST paid.
Tax on sales and purchases are procedure-based taxation in FI component.
Condition Types:

Condition Types
CS01
CS02
CS03
CS04
CS05
Note: CS Input Tax,
CL Output Tax
CS06
CL01
CL02
CL03
CL04
CL05
CL06

STEEL
C H AR M I N AR

Account Keys:

C AS T I N G S

Description
Excise Duty Paid
Education Cess Paid
SH Education Cess Paid
VAT Paid
T Code: OBQ1
CST Paid
Customs Duty Paid
Excise Duty Payable
Education Cess Payable
SH Education Cess
VAT Payable
CST Payable
30
Customs Duty Payable

Not
Posting
Deductible Indicato
Excise line
Dutyitem.
Paid
Input Tax
2
NOTE:CS1
- 2 - Separate
3 - Distribute
CS2
to relevant
Education
expense
Cess Paid
/ revenueInput
T Code:
Tax OBCN
2
item. CS3
SH Education Cess Paid Input Tax
2
CS4
VAT Paid
Input Tax
2
CS5
CST Paid
Input Tax
2
Tax Procedure:
CS6
Customs Duty Paid
Input Tax
2
A
calculation
procedure
is
defined
for
each
country
INDIA,
containing
the
CL1
Excise Duty Payable
Output Tax
2
specifications
CL2
Education Cess Payable Output Tax
2
required
to
calculate
and
post
tax
on
sales/purchases.
Calculation
procedure
contains tax
CL3
SH Education Cess
Output Tax
2
types, CL4
VAT Payable
Output Tax
2
which CL5
are called CST
condition
types
in
the
procedure.
Payable
Output Tax
2
The system
defaultsDuty
condition
types Output
when you
CL6
Customs
Payable
Taxdefine a tax code.
2 The condition type
(such as input or output tax) specifies the base amount on which the tax is calculated and
the
account key that is used to post the tax. The specifications necessary for calculating and
posting
tax have been defined for the condition type and account key.
Tax Procedure CSCL
A/c Key

Step
10
100
110
120
130
140
150
200
210
220
230
240
250

Description

Conditi
on Type
BASB
CS01
CS02
CS03
CS04
CS05
CS06
CL01
CL02
CL03
CL04
CL05
CL06
STEEL

Type

Description
Excise Duty Paid Input Tax
Education Cess Paid- Input Tax
SH Education Cess Paid- Input
VAT paid-Input Tax
CST Paid Input Tax
Customs Duty Paid- Input Tax
Excise Duty Payable-Output
Education Cess Payable-Output
31
SH E Cess Payable-Output Tax
VAT Payable-Output Tax
CST Payable Output Tax
Customs
C A S T I N G SDuty Payable Output

From
10
100
100
10
10
10
10
200
200
10
10
10

To

100
100
120
120

200
200
220
220

Account
Key
CS1
CS2
CS3
CS4
CS5
CS6
CL1
CL2
CL3
CL4
CL5
CL6

C H AR M I N AR

T Code: OBQ3.
Tax procedure CSCL is assigned to country India.

T Code: OBBG
Tax Codes
The tax code represents a tax category, which must be taken into consideration when
making a tax return to the tax authorities. Tax codes are unique per country.
The tax rate calculation rules and further features are stored in a table for each tax code.

Tax Code
I0
Maintain tax codes
I1
I2
Rates of Tax
I3
I4
O0
O1
O2
O3
O4

Description
Input Tax Exempted
Customs Duty
Excise + Cess + VAT
Excise + Cess + CST
Customs + Excise +
Output Tax Exempted
Customs Duty
Excise + Cess + VAT
Excise + Cess + CST
Customs + Excise +

Tax Type
T Code: FTXP
V
V
V
V
V
A
A
A
A
A

12.2 Withholding Tax

Tax Tax Act 1961, TDS
Rateisofdeducted
Tax
As per the Income
on service related payments under
Customs
Duty
8
the
Excise Duty
16
following categories.
Education Cess
2
SH
Education
Cess
1
Salaries,
VAT
12.5
Dividends,
CST
3
Interest payments,
Contract payments,
Rent,
Professional & Technical fees
Quarterly Returns are submitted to the Tax Department
At the Year End, TDS certificates are issued to the concerned parties from whom the TDS is
made.

32

STEEL
C H AR M I N AR

C AS T I N G S

When customer makes TDS, it is not accounted until receipt of

certificate. Up to that time it is
shown as outstanding against certificate.
In the year-end TDS certificates are obtained from the
customers.
Withholding Tax types and Withholding Tax codes are
maintained for each category of
Withholding Tax.
Withholding tax types
01:
02:
03:
04:
05:
06:

TDS on Payment posting

Surcharge on TDS
Cess on TDS
Higher Education Cess on TDS
Cess on Surcharge
Higher Education Cess on Surcharge

Withholding tax codes

Remittance challans are created in
T
C
o
d
e
:
J
1
I
N
C
H
L
N
Withholding Tax certificates are created in
T Code: J1INCERT