| # Tax in Projects Tax calculation in Projects (on the sales side) depends on the tax method specified for the project. The following tax methods can be used for a project: Identification This method is used when the project has identifiable work breakdown structure/elements. VAT is applied on the material component and the service tax is applied on the service component. An aggregate tax code is defined for each element or activity in the project structure, that is modelled to meet the above requirement. Composition VAT is applied on the total contract amount. The service tax is applied on the fixed percentage of the service component in the contract amount. An aggregate tax code is defined for each business partner in the project. Project Estimation You can define a tax calculation method for each estimate version. The tax details are provided on the cost side and the sales side. The estimate lines show the claimable and non-claimable taxes. Bid and Bid lines also include the sales tax amount. Project Budget All the budget lines include tax amounts on the sales and cost side. Landed cost amount in the budget lines includes the non-claimable taxes. Landed cost amount is considered in the budget cost analysis and the control data. Monitoring and performance of the project is based on the landed cost. Project Costs and Commitments The landed cost amount posted in the costs and commitments includes non-claimable taxes. Project Invoicing You can use VAT and Service Tax codes during invoicing . |