I'm assuming that, the country is India and based on its requirement:
Sales tax is a state government revenue. There are two types of sales taxes,
Local sales tax & central sales tax. Local sales tax is intra state whereas CST
is inter state.
Example of LST : Point of sale i.e. delivering plant & ship to party are
within the same state. The rates are defined by the respective state
governments.
Example of CST : The Delivering plant & Ship to party geographic locations
are 2 different states. At the point of sales from one state, the ST goes to
that state govt. & consignment is despatched to the Ship to party. Once that
consignment is received at the ship to party state, sales tax will be levied
once the sales is registered there. For this case, the LST that is applicable by
the Ship to party further will not be applicable in all probability to be
captured in SAP.
Stock transfer : This does not attract any sales tax. The consignment is
transferred from one D plant to another D plant irrespective of inter/intra
state sales. The invoice that is accompanied with the consignment thus shall not
have any final value. It's a zero value invoice, but the basic prices needed to
be mentioned.
The selling organisations normally needs to register with the sales tax
authority of the respective state to have a warehouse or D plant to avoid the
double taxation for their dealers/distributors.
Now, the pricing procedure that is there in 4.7 is Factory sale with formula-JFACT,
in which the CST condition type is JIN1 & the LST is probably JIN2. There may be
surcharge cond types as well which will calculate the amount on either JIN1 or
JIN2.
2. The tax rates are normally driven from the Tax classification of Customer
& Material access. To do this config, S&D >Basic fn. > Taxes. You need to
include the condition type for country IN in 'Define tax determin rule'.
3. Same path : But go to Tax relevancy of master records where you configure
the condition type & options of rates that will flow to these masters. One needs
to understand here properly as u need to have unique combinations for picking
the sales tax rates. I will try to demonstrate the smallest example. Let's say,
the LST rates are 2%,4% & 0%. I will have two options for material master here.
1 for taxable & 2 for not taxable.
For customer master, I will have 1-LST 2%, 2-LST4% & 3-LST0%. When I create
master records for LST thru VK11 for JIN2, I will chose the access where the
combinations of customer & material tax classifications are available. If this
access does not exist create it under an access sequence. But normally this is
standard. The condition records will look like,
Cust-Tax classi. Material tax claasi. Rate Tax code
1 1
2% A1
2 1
4% A1
3 1
0% A1
Remember, rates are flown from the tax codes. Tax codes can be created thru T
code FTXP. This is normally a FI job.
