| # 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. Define Tax Exceptions by Country Set (tctax1101m000). Use the Tax Exceptions by Country Set (tctax1101m000) session when the tax exception applies to several countries. First, in the Country Sets (tctax0120m000) session, define tax country sets and in the Countries by Country Set (tctax0121m000) session, add countries to the tax country set. Next, run the Tax Exceptions by Country Set (tctax1101m000) session to define the tax exceptions for the country set. 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. Related topics To set up tax exemptions To test the tax model Indian Sales Tax and VAT - overview |