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When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique. The standard system comes with two tax calculation procedures:

-          TAXINN -  IN; India taxes new 

-          TAXINJ  - Sales Tax India

In Tax code, the Tax type level is nothing but steps in Tax procedure maintain for the country.

Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.

TAXINN:

1. It is Condition Based Tax procedure.

2. Tax Code is required to be maintained in Condition Record, & if Tax Code is not found in Condition Record, Sales Cycle will go upto billing, but not release to accounting. Hence even a single Tax code may suffice the requirement for different Tax rate.

3. Tax condition record is maintain through TCode FV11.

4. It only supports condition-based excise determination.

TAXINJ:

1. It is Formula Based Tax procedure.

2. It was most commonly used upto initial phase of R/3 4.7, but the latter implementations were with TAXINN.

3. Tax Code plays a vital role, as the Tax Rate are maintained in Tax Code in TCode FTXP..

4. It is complex compared to TAXINN 

5. It can supports both condition-based excise determination and formula-based excise determination.

6. For Example, code for 362 routine for Condition formula for alternative calculation type