Import PO freight Service Tax

Hi,
In import PO for domestic freight condition type i select the freight vendor. But for MIRO when i selct the tax code for Service tax I need two base amounts one one for calculating tax and other not relevant.Please tell me how to amend the tax procedure or pricing for accomodating two base amounts BSAB.

Hi Tej,
You r right, but tell me in Freight LIV. how can i specify or demarcate which value is for service tax calcualtion. suppose i mention 1000 inr freight in PO freight condition for a freight vendor. At miro when i select tax code it is applied to total value. But requirement is to apply tax say 10% on say 700 only. How do we tackle this. Please guide.

Similar Messages

Freight service tax

Even if the condition type relating to freight service tax is not in the pricing procedure, it keeps coming whenever sales order is created. Does it have anything related to tax code?

Dear Debmalya
Yes if the said condition type is maintained in Pricing Procedure PR0000 and this PR0000 should have been assigned to your PR00 in V/06, then the supplement condition will flow in sale order.
thanks
G. Lakshmipathi

Service Tax Effects to be checked in case of Booking of IMPORT INVOICE

Dear All
Please suggest the process for following :-
Events
     At time of Booking of Invoice for Import of Service
                              Item      Nature
               Normal Accounting Document
                    Dr     Expenses Ledger     P&L     Expenses
                    Cr     Party Account     Bsheet     Liability
                    Cr      TDS On Fees      Bsheet     Liability
               Service Tax Document
                    Dr     Service Tax (Accrued)      Bsheet     Assets
                    Dr     Cess on Service Tax (Accrued)      Bsheet     Assets
                    Dr     SHE Cess Service Tax (Accrued)      Bsheet     Assets
                    Cr     Service Tax Payable (Interim) A/c     Bsheet     Liability
                    Cr     Cess on Service Tax Payable (Interim) A/c     Bsheet     Liability
                    Cr     SHE Cess on Service Tax Payable (Interim) A/c     Bsheet     Liability
     At time of Making Payment of above Invoiced in Full & Final
               Normal Accounting Document
                    Dr     Party Account     Bsheet     Liability
                    Cr     Bank Account     Bsheet     Assets
               Service Tax Document
                    Dr      Service Tax Payable (Interim) A/c     Bsheet     Assets
                    Dr      Cess on Service Tax Payable (Interim) A/c     Bsheet     Assets
                    Dr      SHE Cess on Service Tax Payable (Interim) A/c     Bsheet     Assets
                    Cr     Service Tax Payable A/c     Bsheet     Liability
                    Cr     Cess on Service Tax Payable A/c     Bsheet     Liability
                    Cr     SHE Cess on Service Tax Payable A/c     Bsheet     Liability
               Payment of Service Tax
                    Dr      Service Tax Payable A/c     Bsheet     Liability
                    Dr      Cess on Service Tax Payable A/c     Bsheet     Liability
                    Dr      SHE Cess on Service Tax Payable A/c     Bsheet     Liability
                    Cr     Bank A/c     Bsheet     Assets
               After Payment of Service Tax , the following document shall post into system
                    Dr     Service Tax Receivable      Bsheet     Assets
                    Dr     Cess on Service Tax Receivable      Bsheet     Assets
                    Dr     SHE Cess Service Tax Receivable     Bsheet     Assets
                    Cr     Service Tax (Accrued)      Bsheet     Assets
                    Cr     Cess on Service Tax (Accrued)      Bsheet     Assets
                    Cr     SHE Cess Service Tax (Accrued)      Bsheet     Assets
     At time of Utilisation of Service Tax Credit agianst Cenvat Liability
               As per Cenvat Document
                    Dr      Cenvat Payable A/c      Bsheet     Liability
                    Dr      Cenvat Cess Payable A/c     Bsheet     Liability
                    Dr      Cenvat SHE Cess Payable A/c     Bsheet     Liability
                    Cr     Service Tax Receivable A/c     Bsheet     Assets
                    Cr     Cess Service Tax Receivable A/c     Bsheet     Assets
                    Cr     SHE Cess Service Tax Receivable A/c     Bsheet     Assets

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

Service tax and cess on freight for inventorised items

Hi all,
There is a scenario where service tax and cess is charged on freight line items in a PO for inventorised material. This had been incorporated in pricing procedure accordingly. But while doing a MIGO it is found that the service tax and cess are charged on the materials. This should not be charged to the material rather at the time of MIRO it has to be posted to a receivable account.
Can anyone suggest what configuration is required for this.
thanks in advance
asbin

Hi Ponraj,
i would like to know the solution in detailed. As Per my client requirement, i have separated VAT amount and posting into separated G/L account. but my problem is i have to pay tax on freight amount to government. The taxes on the freight will be different. since 25% from the freight amount is taxable. so 25% from the freight amount i have to consider and on that i have to charge 2% E.Cess and 1% secondary higher E.cess.
how could i configure this issue in SAP?
please help me on this issue.
regards
Appu

Clearing agent service tax in import po

Hi,
How to map Customs clearing agent service tax in import po?
for ex:
clearing agent service charge - Rs.2000
service tax 10% - Rs.200
E CESS 2% on ST - Rs.4
SHE CESS 1% on ST - Rs.2
Kindly give your suggestions
Regards,
Ramesh Kumar. V

Few questions,
1. will this agent service charge is going to inventorised or get added to your material value
2. which business scenario of import has service charge attached to it?
3. Service tax->whom will you pay this tax to the material vendor or your service agent vendor? I think it would be the service agent.
If the service agent charges are not going to add to your material then you will have to create a service PO line item seperate from the the material PO line item. Thereafter you can map this scenario as normal define service agent charges as delivery charges in service PO line item 2 and mainatin a Tax code in the system for service tax using FTXP and maintain the condition record for the same in FV11 (if TAXINN) or mainatin the tax % value in tax code FTXP (for TAXINJ).
BR

Pricing , freight conditon type, import procedure in pricing , taxes

I understood the pricing , but what with some exercises from where get this?
How many conditon type will be used in MM ?
<b>pricing , freight conditon type, import procedure in pricing , taxes</b>
which conditon types used ? what make the settings in freight conditons ?

Hi PV
You can go for Alt calc type ,there we can write, the requirement what we need and that has to be put in the subtotal table
Reward if useful
Regards
Srianth

Miro service tax amount is calculating wrongly for particular materials for import PO

Dear All,
I have created import PO with three vendors like foreign vendor, customs duty vendor & Clearing Agent vendor.
After creating PO with all conditions the PO is posted and MIGO is done.
While doing MIRO there is no problem for foreign vendor and customs duty vendor (there is no service tax applicable for both)
While doing MIRO for Clearing agent vendor, we have to calculate service tax for 12.36 %.
The service tax is properly maintained in the system and its calculating correctly for all other PO's except this PO.
This particular PO has 32 materials.the values are flowing correctly from PO to MIRO but while calculating service tax the tax value is higher than the exact value.
When we do MIRO for same clearing agent with different material the service tax is calculating correctly. But if we use particular materials with same clearing agent vendor the tax amount is not calculating correctly
For example:
for Item 10
The value is 1062.72 & 12.36 to be calculated on this value.
The actual tax value is 131.35 but in MIRO its showing as 171.90. The same problem is happening with all other 31 materials.
The Info record is not maintained for all the materials. On what basis should we check for the above issue. Kindly help with your valuable inputs.
Kindly refer the screenshot.
Thanks & Regards
Subbu

Hi Ajith,
Please find the screenshot below
But for same vendor with different material in another PO the tax is calculating correctly
9050* 12.36 = 1118. 58
For this the tax is exactly calculating as 1118.58
Regards
Subbu.

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

Service tax on Import

Hi All,
We have purchased an imported raw material which is Excisable. The Clearing Agent has charged some thing for clearing on which service tax is applied.
Now, I have to Inventories the raw material purchased along with service charges by clearing agent?
Please help me?
Regards,
Abhishek
Edited by: Abhishek A on Oct 31, 2008 6:01 AM
Edited by: Abhishek A on Oct 31, 2008 6:49 AM
Edited by: Abhishek A on Nov 6, 2008 10:37 AM
Edited by: Abhishek A on Nov 12, 2008 11:17 AM

Hi Abi
you have to make the JE for the clearing expenses along with service tax. The clearing expenses along with tax amount will goes to landed cost calculation for item cost determination.
regards
asupathy

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.

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

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

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

Journal Entry for Service Tax Non-Deductible.

Dear Experts,
I have created an A/P Invoice for a Service item with Service Tax Non-Deductible(100%). For that we got the journal entry as below.
Journal Entry
Edu. Cess on Service Tax Payable Dr.                   00
HCess on ST Payable Dr.                                        00
Service Tax Payable (Non-Deductible) Dr.              00
Inbound Freight and Carriage Dr.                       10000
Service Tax Payable (Non-Deductible) Dr.            258
                Vendor A/c                                                     10258.
But my client is asking for the credit figure to be splited to Vendor A/c - 10000 and Service Tax Payable (Non-Deductible) A/c - 258.
He wants the Service Tax amount not to be credited to the Vendor A/c; but to be kept in the Service Tax Payable account.
Is this correct and possible? Please advice.
Regards,
Anandh.
Edited by: anandharajaa on Apr 8, 2011 7:32 AM

Hi
I never seen this kind of scenario....
If your involving any tax in Document then it will Cr. or Dr. to respective vendor or customer and it is the logic too , they have to pay for that... IF they are not payable then will your company pay for that to Govt. It will be lose to company only....
So in Straight the way you need is wrong according to me, May be i don't know your are current scenario might be like this... if it so pls explain further ....
Giridharan V

Import PO freight Service Tax

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