Service Tax on Freight & Excise duty on Service

Hi.
In Sales Order From Factory,
1)The Service tax on Freight is paid by customer. ie. one condition type exist that is Service tax on Freight,
Since it is service tax, it should hit RG23A part1
2)Also "Education cess" and "Higher Education Cess" are applicable on service tax paid.
we cant enter Education cess"(JECS) and "Higher Education Cess"(JA1X) twice in Sales Order. one to calculatate on Basic and one to calculate on Service tax.
also if i create 2 diff. condition type JECS and JEC1 , JA1X and JA1Y, how to configure that in CIN "Specify G/L Accounts per Excise Transaction" which supports only one conditon type.
Reg,
Amol

Hi Amol,
Unlike excise duty, service tax cannot be mentioned in Specify G/L Accounts per Excise transacion as the excise invoice are created for excise duties billing document
Also service tax will not be displayed in RG23A1 i believe it will be only for goods, correct me if i am wrong
Thanks,
Ramesh

Similar Messages

Service Tax on Freight & Excise duty on Service tax

Hi.
In Sales Order From Factory,
1)The Service tax on Freight is paid by customer. ie. one condition type exist that is Service tax on Freight,
Since it is service tax, it should hit RG23A part1
2)Also "Education cess" and "Higher Education Cess" are applicable on service tax paid.
we cant enter Education cess"(JECS) and "Higher Education Cess"(JA1X) twice in Sales Order. one to calculatate on Basic and one to calculate on Service tax.
also if i create 2 diff. condition type JECS and JEC1 , JA1X and JA1Y, how to configure that in CIN "Specify G/L Accounts per Excise Transaction" which supports only one conditon type.
Reg,
Amol

Hi
You can copy and create new condition types and use them for calculating Ecess and Shcess for service tax.
sap sd cin config
Kiran

Export Sale without Tax and Without Excise duty

Hi Experts
The Scenario is like this
The material has no tax and no excise duty (e.g Books)
how to configure this Export sale scenario for Books
Thanks in advance

Dear
For creating Export sales scenario, create Export sales org ZEXP, create distribution channel might be EX, do the required plant etc assignment to Sales org-distribution channel.Create seperate sales order , delivery and billing type and maintain required copy control between them. Create export customer, custommer pricing procedure02 in customer master sales area data-sales, document pricing procedure "N" in VOV8 & vofa.
If u are following taxinn, then you may copy jinexp for pricing prosedure. Pricing procedure must contain condition types for frieght and insurance. Then assign the procedure to sales area.
Please maintain account determination in vkoa with sales org customer account grp, material account grp, account key. Assign separate GLs according to the requirement
pls revert for any further query
Thanks
Chandra
Edited by: Chandra Mukherjee on Dec 15, 2009 10:05 AM
Edited by: Chandra Mukherjee on Dec 15, 2009 10:13 AM

Maintain tax rate for excise duty

Hi,
Where do to maitain the tax rate for Excise duty?
Say for example for Excise duty for 2009.
Regards,
Vidya

Let your requirement be more clear. You want to know , how to create tax codes and the maintain % rates OR something else.
Please clarify.
With Regards
Sagar

Excise Duty/Tax - CIN Doubts - Suggestions Please

Hi,
Please give solutions for this...
1. Service Tax payment or credit is required in three types ( i.e BAS, TIC, GTA). Where as in SAP it is in single type.
2. How SAP will address the entries for ineligible credit on Service Tax, Vat and Excise Duty?
3. In Excise there are two invoices (i.e Commercial Invoice and Excise Invoice). In some cases, Commercial invoice is in one name and Excise invoice is in another name. The accounting of such type of invoices are not addressed.
4. Commercial invoice Received in single invoice where as the corresponding excise invoices are more than one bill. How this will be addressed?
5. In case of Dealer invoice Excise duty may not be 10.3%. It will vary. This also to be taken in to consideration.
6. Duty amount should be rounded off
7. In case of any shortage of materials or price difference how the debit note are to be generated?
With Regards
Anbu

I would like to correct that BED is not always 16% and depends on the chapter
For education cess and higher education cess the rate depends on whether the product was manufacture after certain cut-off dates
for higher education cess this cutoff is 1st march 2007
Reward if useful

TAXINN SD For Excise Duty where to maintain TAX CODE in condition record?

is Tax code necessary for excise determination in TAXINN in SD Scenario? While maintaining condition record ( JEXP) for Excise access sequence JEXC doesnu2019t has Tax Code field Whereas for Sale Tax determination ( JCST/JLST) access sequence JLST /CST which has Tax code field . (In TAXINN we create Dummy tax code (blank))
is it true whatever I have written ? If yes then what is use of tax code where it triggers in FI Posting? Why we use only for Sale Tax not for Excise duty?
If u go to SAP Std condition type & access sequence provide for CIN in SD (TAXINN) While maintaining condition record ( JEXP) for Excise. Access sequence JEXC doesnu2019t has Tax Code field . do u think we should modify that create field for Tax code ..... Pl check in system & answer the question .......I hope u understand what i want to ask.

Hi,
As per my knowledge, Excise is not Tax its a Duty....
Excise gets added to your base price and the tax is calculated on the whole amount and not only the basic price.
Say if u r manufacturing a material and u r under excise regulations, then without paying excise duty you can't move the goods out of your premises, Here even before you sell the material to a customer the excise duty is paid from you. But when u will be selling the material to a customer, the customer is charged the excise duty which gets added to the net value and then the sales tax is calculated.
If u see a sale order condition tab page, there are two fields
1. Net Value 2. Tax
Net value is the value which includes the excise duty and the tax is only the CST/LST/VAT.
Regards

Excise Duty in Australia

In June 2006, the tax rules around excise duty changed so that certain products became excisable.
The requirement is the following:
1. For specific products, if they are purchased within Australia, we have to pay an additional tax called excise duty.
2. The tax is calculated based on the quantity of product received and we have to pay $381.43 AUD per 100KLT received.
3. We pay this amount to the vendor, but we can then claim it back from the tax department.
Has anyone done this ?? Can it be done without the India Version?

Hi,
India Version of Excise Duty deals with maintaining of Excise Registers, Utilization and other legal requisites. But tax calculation is common as all taxes.
If you don't have any things like registers maintainance etc., it looks similar to VAT. So just copy a condition type of VAT and include in tax procedure as per the calculation required. You told that you have to pay $381.43 AUD per 100KLT received. What is this 100KLT, is it a example or for all products where excise duty applicable it has to be calculated based on KLT. Can you elaborate on the procedures of claiming back the excise duty from tax department.
regards,
Mallik

CIN: Excise Duty (JMOD) & ECESS (JECS)

Hi Gurus
Need yr expertise...
Question 1:
Do we need to maintain the 100% for JMOD in VK19 (application TX) or VK11? Reason is if I maintained 100% for JMOD in VK19 (application TX), it is working fine as the excise will be pick up from J1ID and in the SO, the excise duty will be added in the net value. But if I maintain 100% for JMOD in VK11, excise duty will be also pick up from J1ID but the excise duty is added in net value and tax in SO. Which is correct? As far as I understand excise duty should not be added in tax in SO..
Question 2:
JECS is not picking up from J1ID.. I have maintained exactly like JMOD meaning 100% for JECS in FI.. In SO it is showing as 100% but if I maintained 2% than it is showing as 2% in SO.. Why it is not picking up from J1ID?
Pls advise on the above..
Rgds..Vinz

Hi Vinz.
Please find the answers for your questions below:
Q.1 Do we need to maintain the 100% for JMOD in VK19 (application TX) or VK11?
Ans: Maintain 100% for JMOD in VK19 (application TX) only. No need to maintain any condition record for JMOD in VK11.
Q.2 Explanation of Net value and Tax value
Vinz. See, JMOD being condition from FI Side fetches the condition record via tax code (100%) and then takes 100% of what is maintained in J1ID.
Excise Duty is getting added to Tax Value because condition record has been maintained for JMOD (application TX ) and you have not made JMOD as statistical in your tax procedure.
Excise Duty is also getting added to Net Value because of SD Side condition JEX2 whose condition record has been maintained in application V (via VK11) which is Of Course not a statistical condition.
That is the reason it is coming in Net Value(Due to JEX2) as well as Tax Value(Due to JMOD not marked as statistical in Tax procedure)
Q.3 Which is correct? As far as I understand excise duty should not be added in tax in SO..
Ans: Correct.
Total Central Tax to be marked as statistical in the tax procedure
TAXINJ , so mark JMOD as statistical in Tax procedure.
Q.4 JECS is not picking up from J1ID..
Ans : Plz check following :
1. Formula 366 has been assigned to JECS in Tax procedure as well as pricing procedure and Formula 353 (if factory sale ) or Formula 356 (if depot sale) has been assigned to JECX in Pricing procedure. And Formula 366, 353 and 356 contains the changes required for Edu. Cess
2. Conditon record for JECX has been maintained in VK11 as 100%.
3. Check you have maintained 2% in J1ID for column ECS%.
Hope this sorts out your issues. Please come again if you have any doubts.
Plz reward if found useful.
Regards,
Gaurav Raghav.

Excise Duty amount is not properly accounted

Hi
SAP EXPERTS
The Invoice has been made.
When they stimulate in accounts the EXCISE DUTY Portion was not posted in their respective places instead it is shown in VAT Collected Column.
Guide me in this regards.
Regards,
Anand

Check your tax code for excise duty and VAT and also see what G/L Account is assigned against these tax codes. Probably, the root cause could be here.
thanks
G. Lakshmipathi

Regarding Excise Duty with MIRO

Dear SAP Gurus
I have one quirey -Please kindly help .
I have created PO and I have not mentioned tax code of Excise duty .(Because intially I am not aware the taxes on the particular material).
After recieving the material from Vendor only I will come to know the values of taxes not in percetile.
So , after doing the GR , with reference to GR document, using J1IEX Transaction I am capturing
the Excise using EWPO transaction key.
but while doing MIRO for the vendor , I am not able to get this values .
How to get this requirement , is there any exit availeble for the same for getting the same in MIRO.
because , the client does not want to change the PO after reciept of material.
This is essentially required for me ..pls let me know
rgds
SAP123

during the time of MIRO you need to feed correct tax code , i.e the tax code having condition records of all involve duties(any %age) but correct sales tax rate.
hope it helps
regards
Avinash

Excise duty should calculate , but inventorised ??

Hi experts
Can anybody expalin me , how to do the configuration for my requirements.
I have taxcode : V1- ED 8% + Ecess 2% + SEcess 1%+ VAT4%.
For above tax code , the excise duty value should be shown percentages wise in PO , but it should get inventorised while posting GR (MIGO).
How exactly configuration has to be done ??
Thanks
SAP-MM

Hi,
I am not getting what exactaly u want .....?
Taxes can be treates in two types in SAP MM :-
1. Deductable(Not Inventories)
2. Non Deductable(Inventorised)
1. Deducatble tax :- Taxes can be calculate at the time of GR if processed by CIN process. and you can get these taxes to post different GL at the time of MIRO. Only material cost be showm at time of GR.
Deduct able tax:-
          JMOP    - IN BED Settoff %
          JEC1     - A/P Edu. Cess Settoff
          JSEP     - IN A/P H Ecess Setoff
          JVRD   - A/P VAT RM Deductable
2. Non deducatable :- Taxes will be added to material at time of GR. Separate clearing acct for taxes is not possible.
Non Deductable Tax:-
                         JMIP    - IN BED Inventory
                         JEC2   - A/P Ecess Inventory
                         JSEI   - IN A/P H Cess Inventory
                        JIPC - IN C Sales Tax INV
                         JVRN u2013 A/P VAT RM Non-Ded.
Hope help u !
Regards,
Pardeep Malik

Excise Duty In Service Documents

Hello,
In India, Excise Duty is levied on certain items. In SAP Business One we can define separate tax codes - for excise - and these are selectable only when the item and warehouse is excisable.
But while creating Service Type Documents - it allows to select any type of tax code. Excise tax codes also. This creates a problem, in case a user selects an excise tax code for a service type document, let us say, Goods Receipt PO, they can not process it further.
The GRPO will get added without any problem. But an Incoming Excise Invoice cannot be created. It shows error that services cannot be excised.
An AP Invoice / Goods Return cannot be created either, because they require an Incoming Excise Invoice.
Otherwise also, since services cannot be excised, so when the document type is service, it should not show Excise Tax Codes. This is something which should be looked into. Such things allow novice users to create wrong documents and get stucked unnecessarily.
Regards,
Rahul Jain

Hello Rahul,
You are right. But that is not the ideal way. I can in fact filter out the tax codes - by applying a filter on the respective CFL. And I have done that. But this is not the ideal solution.
Regards,
Rahul Jain

Scenario - Service Tax on Freight

Hi All,
How I can map below scenario -
Basic Price - 1000.00
VAT 4 % - 40.00 - Tax code
Freight - 100.00 - Condition Type
Service Tax on Freight - 25.00 - Not to be inventoried on Material
PO Value - 1165.00
Currently we are not adding service tax component in PO. How to add the same.
If I go Through condition type, service tax will get inventoried on material.
Please suggest.
Regards,
Rakesh

Hello,
Basic Price - 1000.00
VAT 4 % - 40.00 - Tax code
Freight - 100.00 - Condition Type
Service Tax on Freight - 25.00 - Not to be inventoried on Material
PO Value - 1165.00
Create One account key and acrrual for condition "Service Tax on Freight" and assign that one Pricing procedure. then system will not inventorised that value.
If Basic Value of the PO is --1000 .
VAT 4% on Basic price means --40INR (is it invenotrised?)
Freight ---100 INR
Service tax on Freight--25
Then Sytem will show at the time of GR(accounting entries)
BSX----1165+
WRX---1000-
Fright--100+
Freight--100-
Service on Freight---25+
Service on Freight---25-
Regards
Mahesh Naik

Calculating Service Tax on Freight Charge

Dear All,
           My client procures a material on which it pays freight charges to freight vendor .And service tax is calculated on freight only .Immediate payment is done to the freight vendor .And service tax is paid on freight .
           What I have achieved until now is I am able to get condition type for freight and I am able to assign vendor number is that condition type detail .
           But how I will calculate service tax on freight . In my view service tax should be fetched from tax procedure . In tax procedure service tax is calculating the value from gross price BASB .
           And BASB is fetched through routine 362 .
           Please anybody let me know how I will overcome the situation .
Regards
Abhijit Das

Hi
Go to transaction code FTXP and select the country for which you need to create a tax code. This country is automatically linked to the Tax Procedure which has been set up in the menu path [IMG - Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure.
Enter in the field tax code. This must be a 2-digit alphanumeric code like S1
Tax percentage can be maintained in two ways & that depends upon the Tax procedure that has been followed i.e. if tax procedure is formula based then percentage can be maintained in FTXP only, where as if the procedure is condition based then percentage has to be maintained under the identified condition type.
Once done GL accounts has to be assigned under OB40 for automatic posting of tax amounts.
Its better if you can get it configured by FI consultant
Edited by: Basab Bose on Mar 2, 2009 9:29 AM

Service tax on freight

Hi Experts,
We have shipment document and cost calculation in place for inbound material.
Now we have one requirement that at the time of GR the following entry should be posted;
Inventory Dr
GR/IR Cr
Freight Clg Cr
Service tax on Freight Cr-particular GL
Now the freight cost is coming from shipment document and FI posting is getting done at the time of GR.
How this service tax part can be taken care of by loading to inevtory and crediting a GL also calculated upon a freight value.
How pricing procedure in shipment document and purchasing can be linked
Regards

Hi
The service tax will be captured to seperate g/l account at the time of invoice posting. if u want to inventorize than do it through debit entries.
if u want in the pricing procedure than create one more condition type and give the from and to that of the frieght condition so that i will calculate from the frieght value and assign an account key and the account key will determine the g/l account.
hope this will help u.
Regards
Santosh Kumar

Service Tax on Freight & Excise duty on Service

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