Exempted vendor Service Tax Issue

Hi ,
One our vendor having exemptions from service tax . The scenario is follows
If total amount of invoice is 100000 Rs then in normal case service tax payable is 10.33 % = 10330 Rs and Total value is 110330 Rs .
Now for this particular vendor if amount is 100000 Rs then he has to charge service tax on 35 % of amount that means 10.33 % on 35000 Rs so Tax = 3615 Rs and total Invoice amount will be 100000 + 3615= 103615 Rs.
Each time calculating it manually and booking the invoice is not possible . How can I configure such scenarios . Is there any standard settings available for the same
Regards
Bhushan

Hai,
create the new service tax code with required percentage and use the same .

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Service tax issue

Hi,
My client is posting some vendor invoices through FB60. When they are posting in FB60, TDS is getting calculated automatically for that particular vendor. Entry is showing like this
Itm PK Account Account short text Assignment Tx Amount
1 31 201009 Intertek Testing Ser 887.00-
2 40 170113 Exp Freight unplannd 1,000.00
3 50 111106 TDS Payable - Prof 113.00-
Now the problem is service tax. Service tax is 12.36%. Invoice amount 1000 include service tax also. Now they are posting service tax manually. The entry should be like this
Itm PK Account Account short text Assignment Tx Amount
1 31 201009 Intertek Testing Ser 887.00-
2 40 170113 Exp Freight unplannd 889.00
3 40 104501 Service Tax Credit 111.00
4 50 111106 TDS Payable - Prof 113.00-
Now the service tax Rs 111/- Should be calculated automatically by the system. what changes I have to made. please suggest me. Advance thanks.
Jay

Dear amit,
My issue is service tax should be calculated on expense account and that amount should be debited along with expense account. Vendor account and TDS accounts should be credited. If I assign the new tax type to vendor master this amont also will be credited. I want the entry should be like this
Itm PK Account Account short text Assignment Tx Amount
1 31 201009 Intertek Testing Ser 887.00-
2 40 170113 Exp Freight unplannd 889.00
3 40 104501 Service Tax Credit 111.00
4 50 111106 TDS Payable - Prof 113.00-
If it is possible in way u suggested, plz explain briefly how to proceed.
Regards
Jay

Service Tax Issue on Transportation

In INDIA when we receive the invoice from transporters we have to calculate the service tax on the 25% of the invoice amount and the TDS as per the rates applicable entry should automatically be like this when we will use the service tax code eg
Invoice amount is 25000
Vendor Cr rs 22167
Transportation charges Dr 25000
TDS payable basic       Cr 2500
Surcharge                    Cr 250
ECS                            Cr 55
HECS                          Cr 28
Service tax                   Dr 643 (p&l a/c)
Service tax`payable       Cr 643(B/Sheet a/c)
Now the issue is when i use the tax code in SAP it posts a different transcation like
Vendor Cr rs 22167
Transportation charges Dr 24357
TDS payable basic       Cr 2500
Surcharge                    Cr 250
ECS                            Cr 55
HECS                          Cr 28
Service tax provision     Dr 643
Please let me know where i am doing wrong
Please revert
Sunil Kumar

Dear ,
this are the steps for calculating Service tax for Transportation (GTA)
Create new entries with GTA as the Official withholding tax key name
Create withholding tax type using the path
Create withholding tax code using the path
Note: when u create tax code u should select '3' for posting indicater under postings
Assign the withholding tax type to the company code using the path
Maintain G/L accounts for the debit entries using the path
if u have any quarry please get back tome......
Regards
radha

Vendor service tax at the time of down payment

Hi sap Guru's
Service Tax payable on Vendor Advances at the time of down payment.
Requirement: New tax code X5 need to create with CST@5% on 80% of Bill value and service Tax @12.36% on 70% of Bill value. While calculating the CST amount, system should take the base value by excluding the service tax amount.
I had created the requirement and at the time of posting in F-43
The service tax calculating.
But when i am posting in F-48 the tax is not calculating. What is the reason
For down payment f-48 i need to make any configuration, or need to maintain anywhere the tax code x5
Please advice me why at the time of down payment F-48 the tax is not picking.
Thanks & Regards,
Ramesh

Thanks you very much for your reply sudhir,
If i select ,"Posting without tax allowed" check box why the system is not going to calculate the tax
And in recon account should i maintain G067. or any else.
Thanks,
Ramesh

IMport of service -service tax issue

Hi all,
we have a situation for import of service foreign vendor.....where service tax accounting entry should be like this at the time of MIRO....
vendor a/c cr-100
expense a/c dr-100
service tax rec dr-10%-50
service tax rec dr-2%-5
service tax rec dr-1%-1
service tax pay cr-10%-50
service tax pay cr-10%-5
service tax pay cr-10%-1
Tax procedure used is TAXINN.......

Hi
Do one thing remove second & third(ie Ecess & S&H ) conditions as negative and keep it in Blank . But caluculation has to be calculated % from Negative Service tax Amount. for Ex like below
001 BASE Amount
100 JSER Ser Tax                       001     001
101 JESS Ser Tax Ed Cess         100    100       2%
102 JSES Seconday Ed Cess     100    100      0.01%
Negative Conditions
200 Zser Ser Tax                     001
201 ZEss Ser ED Cess             200   200     2%
202 ZSES   Secon Ed Cess       200 200      0.01
May be it's works for you.

Vendor service tax

Hi
SAP GURU'S
I configured all service tax settings And posting the invoice as down payment
But the service tax is not calculating, normal entry coming like as below
Spl Customer A/c DR
    To Bank
The tax code is showing but tax not calculating.
I tried in f-43 invoice in this the tax is calculating. For reconciliation A/c i selected only tax category *.
Why at the time of down payment is not calculating service tax
Kindly anyone advice me.

Hi Subba Reddy thanks for your reply
i selected posting indicator "2"(Separate line item).
this entry for F-43
    PK BusA Acct                               INR   Amount        Tax amnt
001 31 0020 0000010191 vedor                     200,000.00-
002 40 0020 0001020003 inventory rm - I          200,000.00                 T7
003 40       0001250033 SerTax Acc Input-Ad      18,000.00                 T7
004 50       0001250036 Service Tax Payable       18,000.00-                T7
005 40       0001250034 SerTax Ses Input-Ad        360.00                    T7
006 40       0001250035 SerTax H Ses-Adv            180.00                  T7
007 50       0001250037 ST CESS Payable              360.00-                 T7
008 50       0001250038 ST HECESS Payable           180.00-                T7
The same entry i am trying for down payment f-48
at the time serivce tax is not picking
the entry is coming like below
Spl Customer A/c DR
    To Bank
i want as above entry
please suggest me.

How to create a Catalog (Product/Service) & TAX issues

SRM Guru's
Product Ver: SRM 5.0 : ECC 6.0 ( No CCM or Service Master )
TAX S/w: Vertex ( O )
As of now: We are planning to implement a vanilla SRM-ECC (in ext. classic). We are into Indirect procurement w/limit orders.
Catalog:
I want to create a Catalog ( UNSPSC or 1 level company catalog),
 1. Can this be created in ECC (with out Products ) and replicated to SRM (EBP)
 2. How to go about creating it ?
 3. Can it be done with out CCM, if so how
 4. How to replicate it ? ( no CCM or middleware )
 5. Can i create it in EBP ? if so, plse say how..
TAX:
Vertex mentioned that, Tax codes will be mapped to services, in our case, since we dont have Services except a free form text describing what service is provided ( eg: "Payroll Service" ), what can be done ?
In a normal scenario, i can imagine having Service Master with all "Services", but in our situation, how can we use catalog to map to TAX codes. ?
PS: If you could, please describe/break down the relationship between
 Catalog -- Category Id -- Product -- Services/Materials
regards.,
-Rupesh

Hi
To create internal catalog there are three possibilities
1. CCM Catalog developed by SAP.
2. SRM-MDM Catalog taken over by SAP.
3. Requisite Catalog other catalog provider.
Check these links ->
http://help.sap.com/saphelp_ccm20/helpdata/en/index.htm
https://websmp101.sap-ag.de/ibc-srm here check SRM-MDM Catalog.
http://www.requisite.com/solutions/index.cfm?pageID=productpac_bugseye
Re: Catalog Mgmt
Other related links ->
Create Internal Catalog
Re: Create Internal Catalog
CCM Create catalog link
Re: creating a catalog
Catalog ID does not exist
Re: SRM Contract Catalog - Creation
CCM SRM product catalog
Re: Product Catalog to CCM
Managing Catalog content in SRM
http://help.sap.com/saphelp_srm50/helpdata/en/0a/f9353e39011a38e10000000a114084/frameset.htm
http://help.sap.com/saphelp_srm50/helpdata/en/ba/7a50415e216e24e10000000a155106/frameset.htm
P.S: All tables for CCM (Catalog tables and CCM) start with "/CCM/" ,so you can search on that using SE11 transaction.
MDM-SRM Catalog
Re: MDM SRM - Catalog - External Catalog - Punchout
Punchout catalog
Punchout catalog
Loading Product Data into Catalog using CSV files
Loading Product Data into Catalog using CSV2.0 file
Contract catalog
Re: Contract catalog
Hope this will definitely help. Do let me know.
Regards
- Atul

Service Tax Code Creation?

Hi,
While raising A/R Invoice I have to charge service charges of Rs. 100000/- in which 67% is exempted from Service tax. In this circumstances how i have to create Service tax set up.
Ex. Service Charges -
1,00,000
Less : Abatement 67%----
67000
          Balance 33% -
33000
          Service Tax @ 12.36%on 33000                  4,079
Invoice Total Should be                                      1,04,079
Pl. help me in this regard for setting up the service tax code.
Thank & Regards
Sampath Devuneri

sampath,
Pl follow the below link for defining tax code
use s-user id to login,
https://websmp208.sap-ag.de/~form/sapnet?_SHORTKEY=01100035870000680297&_SCENARIO=01100035870000000183&_ADDINC=011000358700002837782005E&
There is a document in pdf
Localization in 2005B for India
Jeyakanthan

Service tax MM

Hi Team,
There are 2 places we can see service taxes.
1.In FI - TAXINN we can config these service conditions.
2.EXTERNAL SERVICE MANAGEMENT - Service conditions.
Can any one explain when to use which and why ?

Service tax is not specific for the FI & MM ,service tax is the tax leived on a specific service which we have procured for the manufactering or non manufacturing process. For manufacturing process service procured we will get the benefit on the particular service tax , only after the bill is paid to the vendor or service provider.
If service is captured through service PO than MM is involved all the procudure of Service PO, Service entry sheet & Invoice verification , Payment to vendor , service tax utilization .
If service is for GTA than directly JV can be passed in FI.
If required more specification, give me your excat dought in service tax.
Regards
Iqbal

While making vendor clearing through F-44, service tax is also coming

Hi Expert,
I have an issue related to vendor clearing,
1. I have make an advance payment following transaction took place :
29 Vishal Ltd                     10000
40 Service tax input               100
40 Excess on service tax        20
40 HSec on service tax             2
            50 To ICICI Bank                     10122
2.   But when I am clearing the Vendor through F-44 the value is showing me value of 10122, instead of 10000, why this is happening can you give an idea.
Thanks in advance
Rahul

Hi Also refer Oss notes:
Note 75750 - F5100: Entry E 3 '' is missing in table T021T
Cause and prerequisites
Customizing error:
The user usually logs on to the R/3 System in a language other than English. For the language English, the user has not maintained any line layout variants under 'Financial accounting editing options: Document entry' (Transaction: FB00).
Solution
After you have logged on in English, maintain the 'financial accounting editing option: ...' by means of Transaction FB00.
Maintain the line layout variants for:
- Document entry
- Open items
- Line items
Hope this helps.
Pls assign points as way to say thanks

Service Tax registration verification for Vendor

Dear All,
We have a requirement :
Say Vendor is registered to take input for 4 service categories, but invoice is received for any other category or say the 5th category for which we are not authorized to take service tax input. Than in such case system should check for service tax registration and system should not allow to post invoice(with reference to purchase order or without purchase order) for the the non registered service tax.
Kindly let me know how to fulfill the business requirement.
Regards
Vikas Sehra

Dear Mukthar,
Thanks for the revert.
We are also working for a similar validation. But in this case we have to create 125 tax codes as per the service categories.
Issue:
1. Is this the best practice to create so many tax codes.
2. Is there any alternative which can help us to create 125 tax codes.
Regards,
Vikas

Service Order+Service tax with Consumption of material(Vatable) from vendor

Dear All ,
           We have a service scenario at my client . My client is sending some material for service work.The vendor during service work adds some conponents(vatable) and sends it back to client .
           What I suggest is to create a Material with material type non stock NLAG . Then create a service PO with 2 lines . First with cost centre/service assignment and with tax code service tax. Second with this non stock line item with tax code VAT .
           I am making it nonstock as this is consumed immediately at vendor end .
          Is this the right approach to do it ?
          Anybody kindly Reply .
Regards
Abhijit Das

This issue is closed

S_P00_07000134: Processing tax exempt vendors

Good Morning Gurus-
I have a situation when executing S_P00_07000134 it is processing Tax Exempt vendors. How can this happen?
Thank you!

Good Morning Again-
I just realized that it is reporting vendors that we use recipient type 07 for 'non' taxable. Obviously this is a config issue. Where in the config do we prohibit printing when a vendor is non taxable by recipient type? The Tax Code is blank.
Thank you!

Input credit on Service tax after making payment to vendors

Dear Friends,
Vendor invoice has been entered with Input service tax and payment has been made to the vendor. After making the payment, it is only clearing the vendor balance and not the input service tax G/L accounts entered on the invoice.
We tried to implement deferred tax functionality (RFUMSV50 program), but here most of the input tax codes are based on the combination of Service tax with VAT. Hence we couldnt proceed further as deferred tax functionality is not applicable for VAT portion and applicable only for Service Tax here as it is a service based industry. In short, the requirement is Input credit can be taken for Service Tax only after making payment to the vendor.
Could you please let me know is there any mechanism where we can identify whether vendor invoice has been paid or not from the Input Service Tax GL accounts (either in FBL3N or FAGLL03 tcode). Based on that if the document is cleared, then my client will only take all the cleared documents' input service tax amounts and will set off with the output service tax.
Regards,
Dwarak.

HI,
Kindly go through the SAP note no.921634 & do the configuration accordingly.
Regards
Anuj

Additonal service tax amount to be paid to vendor

HI All,
The scenario is like this :-
We have prepared a Service Purchase Order for which service entry sheet, invoice verification and payment has been processed in the system with service tax @ 2.06% in june 2008.
But due to change in the service tax rate, the vendor has made an additional demand of service tax @ 4.12% on the SES process earlier. Hence we have to pay him a difference amount of service tax.
Can anyone suggest how to process this in MM.
Thanks in advance.

HI, i think 2 possible ways are there.
1. Post the difference amount to service tax G/L Dr & vendor CR throgh FI JV posting and do vendor payment. or
2. create Credit memo for privious miro and Cancel the Previous service entry sheet and do the fresh SES & MIRO after changing the values in PO.
Subrahmanyam

Exempted vendor Service Tax Issue

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