Tax Code selected not assigned to company code

Hi SRM Gurus,

We are doing an SRM 7.0 (ECS) rollout for India. While trying to create a describe requirement shopping cart, I get the following error 'Select a different tax code. Tax code selected not assigned to Company Code XXXX'.

I have done the following:

i) Defined the Tax calculation happens in R/3 (ECC 6.0)

ii) Defined a tax code in R/3. Run a cycle in R/3 with this tax code. Tax code works perfectly in ECC.

iii) Created a local tax code in SRM and mapped it to R/3 tax code in back-end.

iv) Defaulted the tax code using prod cat.

Can anyone who has faced this earlier point me in the right direction?

Many thanks in advance.

Regards