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

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Service tax calculation for payments made and posting as noted items in FI

Hi all,
I have requirement to calculate service tax on customer payments made in construction company while booking a flat in building.
here we need to calculate service tax on noted items in FICO.depending on work completed and amount received we have to calculate service tax applicable for those payment made.as,I am new in this construction sector having confusion in calculation of amount.can anyone guide me through this.
Thanks in advance.
Harshada
Edited by: Harshada.up on Dec 9, 2010 6:35 AM
Moderator message: "spec dumping", please work yourself first on your requirement, obtain local help if necessary, e.g. get back to the author of your requirement.
Edited by: Thomas Zloch on Dec 9, 2010 10:53 AM

Hi Srinivas,
Can you please tell me how the service tax will get calculated in rental conditions?
I've made the following configuration settings:
Step1: RE-Fx>> Accounting>> Automatically Generated Accounting Documents>> Summarize Documents:
Under this node>> Set Item Summarization "Active" for the particular co. code.
Step 2: Defined service tax under "Tax Type" for country INDIA
Step3: Under the IMG node:
RE-Fx>> Accounting>> Integration FI-GL, FI-AR, FI-AP>> Assign Tax Code:
I've maintained Service Tax (tax type) to the country IN.
Also in the contract under posting parameters tab; i've maintained the Tax Type as Service Tax.
In conditions tab also, when I'm simulating the condition, I'm getting the correct entries, (as shown in the screen shot):
Condition Amount: 20,0000 INR
Net Cnd Crrncy: 20,000 INR (for the month of July)
Tax Cnd Crrncy: 2472 INR.
However, when I'm doing RERAPP; i'm unable to post the condition. Getting the 2 errors (screen shot attached):
1) Tax code S2 does not exist in company code E500
2) Taxes by item is activated; consequently, transfer by item is mandatory
Kindly pl. assist where I'm going worng or any configuration missing due to which I'm unable to execute RERAPP for a condition (with service tax calcultaion) for a commercial lease in contract.
Thanks
Shantanu Kar

Service Tax on advance payment received

Hi friends,
Out client is collecting the service tax on advance payment received from the customers and depositing the same with the department. Could you please let me know how we can adjust automatically the same when he is raising the actual invoice against customer.
Regards
Koteswara Rao

Closed

Utilization of Cenvat Credit from Service Tax Payable.

Hi,
Please guide me whether the process i am following is correct or not. And if it is correct, please help with what additional steps i might be required to perform inorder to resolve the issue.
Case: We are a Company where we donot manufacture and sell items. But we do provide services to our customers. Hence we would like to take the Cenvat input credit from the materials that we buy for our requirements and would like to utilize the Service tax that we would have to pay to Government (On our service contracts with customers).
During the process our RG23A Part-I, Part-II, RG23C Part-I, Part-II have been updated properly. Service tax entries for A/P and A/R have been posted successfully. And the next i am trying to do is utilize Service tax credit (AR) with Cenvat credit available from RG23A, and RG23C by using Transaction code: J2iUN.
I am using the option pay Service tax from Cenvat Cr.
Issue:
When i try to simulate after selecting the utilization from Basic excise duty, education cess and higher education cess i am able to see the entry that i require. But when i try to post the entry system is giving the following error message.
Balancing field " Profit center " in line item 001 not filled. Message ID: GLT2201.
The simulated entry is:
Sales tax payable A/c Dr
Education Cess payable A/c Dr
Secondary Higher Education Cess Payable A/c Dr
Cenvat Basic Excise Duty A/c Cr
Cenvat Education Cess A/c Cr
Cenvat Hig Sec Education Cess A/c Cr
Our Company code is active for Document Splitting with Profit center as a mandatory field.
Looking forward.
Thanks and Regards,
Purna.

Dear,
As per your description its look like you have follow standard procedure.
Only thing is that when you do J2IUN, Input Business Area on Selection screen to avoid profit center error.
Let me know if you still getting any error.
Regards,
Rajesh koladiya
Edited by: Rajesh Koladiya on May 7, 2010 5:09 PM

Service Tax On Down Payment and Tax Payment Wizard

Hi All,
We would like to make a down payment and apply service tax to it.
Once i create a AP Down payment invoice with the service tax, make an outgoing payment against it, create AP Invoice and adjust the down payment, now after following this procedure, when i run the tax payment wizard, the service credit available becomes zero.
It works well in case of partial payment but not 100% advance. Has anyone faced this issue??
How can this be resolved?
Thanks,
Joseph

Hi Rahul,
Exactly! The system doesnt consider the tax on DP when we check through Tax Payment Wizard.
I guess this is a missing functionality? What do you think? Because there may be a chance that the service tax may get deducted at down payment! What is your take on this?
Looking for valuable responses from other experts too!
Thanks,
Joseph

Service tax calculation on payments

hai sap gurus.
my client has nine company codes and in every company they want to calculate service tax at the time of receiving payment from customer.i think this is not possible with f-28.can any one suggest me the solution for this trouble some problem.
thanks in advance.
R A J I N I

Service Tax is NOT Income Tax. So, you would not calculate Service Tax downpayments. Service tax is applicable only on Service rendered and does not concern whether it is paid. (Though, if you want to avail Service tax credit, you'll have to pay for the service, which is mandatory as per the Indian Tax laws).
So, Service Tax is only calculated from the Invoice. As long as no invoice is raised, no Service tax is payable / deductable.
The above is true for India and most countries. You have not mentioned which country are you working with. If such a scenario is appropriate in your country, you'll have to consult your country version documentation.
Ravi.

Service Tax on Down payment is also getting cleared when clearing Customer

Hi,
when i pass down payment the entry is as follows
Bank A/c Dr              10000
Customer A/c Cr        9000 (Special GL)
Service Tax A/c Cr    1000
When i clear the down payment against invoice the entry is as follows
Customer A/c   Dr 9000   (Special GL)
Service Tax A/c Dr 1000
Customer A/c Cr    10000
But i should clear only 9000 not 10000. and service tax also should not get reversed when clearing doc.
And could not find any specific configuration in resolving the above issue.
Please provide any help on resolving the above issue.
Thanks and Regards,
G VINOD

Hi Asheesh,
Thanks for promot reply.
The link which u have assigned is all about WHT (TDS) not relating to Service tax.
Both are different. and i too have checked the same.
But still not able to resolve the issue.
Please provide the inputs.
Thanks and Regards,
G VINOD

Validation for bank while making payment to Vendors

Hi All,
We want the system to validate the bank balance while making payment to Vedors via f-53,f-58,f110 or any other payment transaction,
Eg;
Available Balance in Bank ; 25,000/-
Payment to vendor must be restricted to max of 25000/- or less than 25000/-
The system must allow us to make payment more that the available bank balance(less the minimum balance that has to been maintained at bank).
Where & How can i capture this requirement in the system.
Appreciate your responce in time and your patience too
Regards

Dear Raghu,
Thanks for your reply.
Our requirement is not the minimun bank balance.
Our requirement is that the system must not allow us to run any payment beyond the available amount in the bank account.
for eg : if we have 10 lacs as on day in our bank account,we must be in the position to make payment to vendor to max extend of 10 lacs only not more than that.
At present the system not having any control in this.....
How can i do it in OB28...bcoz we have 5 account.1.Main Bank,2.Chq Incoming,3.Chq Outgoing,4.Cash With drawal & 5.Cash Deposit.
Can you let me know how can we bring this in the system to validate the out going payment.
Regards

App not received even after making payment

My Black berry I'd is -amarjitsatia
I purchased one pro version of "JUnk call blocker professionl" wide order no 11391270 Dt-24 July 2012
I have still not received my order,inspite of my various mails to the vendor"S4BB Ltd"
The app shown under my I'd is still the demo version with limited access whereas I have paid for the Pro version,neither I have received any update from the vendor,I have tried with the vendor and the reply is that the app store support would be dealing with this
Kindly look into the matter and oblige

Bhai for all that I know your problem may have been an internet connection time out. I'm nit sure what a perfect solution would be but you should try checking once if the app is still available on the app store. If it's there then try downloading the trial version of the app, and then put the license code when they ask ask for the upgrade.

Service tax settoff with excise

Dear Sir,
MY company is a manufacturing company, where it pays the service tax &the invoice value to the vendor in total, now while doing stock transport order, the excise amount which needs to be paid have to be adjusted with the service tax collected on payment to vendor, pls tell me how to settoff service tax with excise
pls help asap.
with regards
suman

Hi suman,
This forum area is for issues or questions relating to the "SAPGui". This is not the correct area to post your question.
Cheers
Shaun

Service Tax credit in SAP B1

As per new rules from Govt (India), companies can now avail credit on Service Tax at the time of booking an AP invoice. However, to the best of our knowledge SAP B1 (upto version 8.81) does not have this functionality. It expects an outgoing payment to be made before it can show the credit in the Tax Payment Wizard. We request experts to advise on how to handle the scenario of availing credit on Service Tax based on AP invoice booked.

Hi,
Because it is a new legal requirement, you need to find a way to log the requirement ASAP to SAP so that R&D team can put it on a priority list.
Thanks,
Gordon

Cenvat Credit taken based on service tax registration

Hi Gurus,
My client is in the service industry ( oil exploration work for ONGC)
Now when client procure the material, he paid the excise duty and take the CENVAT credit against service tax.They does not maintain the excise register like RG23A & RG23C.
They required one report for take the cenvat and wants the entries of excise duty into separate GL instead of loaded into material.
SO CIN setteings are required are not.
pls suggest me what i do in that case.
As i think no setting required for excise CIN module cause client does not registered with Excise and treat excise condition into separate GL as VAT and CST.
Regards,
Dinesh

HI Nukala Padmaja,
Thanks for your help.
Could you tell me which service tax gl accounts should be entered there. We usually have 3 gl accounts i.e.
1. Service tax
2. Education Cess on ser. tax
3. ECS on service tax
and there are options for 6 GL accounts of service tax:
3 gl accounts for ser tax account &
3 gl accounts for ser tax payable
so i am confused where to entered that gl accounts.
Awaiting for your valuable suggestion.
Thanks and Regards,
Nilesh Joshi.

Tax code S2 may only contain one assignment line-Input Service tax

There is one interim service tax input code (for normal services) - S1. Final service tax code S2 is created assigned to S1 as target tax code.
Entry passed:
Exp A/c.. Dr 500000
Service Tax Basic (deferred) 50000
Service Tax ECS (deferred) 1000
Service Tax SHEC (deferred) 500
To Vendor A/c 551500
But when i execute the program i can see three line items (for basic, interim and SHEC)
But when i run the session, it gives error:
Tax code S2 may only contain one assignment line.
I AM UNABLE TO UNDERSTAND, WHY ITS GIVING ERROR FOR Input SERVICE TAX TRANSFER
But for output Service tax Interim-I1 and final Service tax code-T1- means in case of customer, the deffered tax transfer cycle is working fine.......
regards

Hello Pari,
Could you please share the solution?
I am facing same error.
While executing programme RFUMSV50 system is generating batch but no postings are taking place while processing the same.
however while executing RFUMSV25 system is generating batch inputs and while executing the programme it gives me similar error that you have faced. i.e Tax code 8S may only contain one assignment line.
Please tell me the solution.
Rahul Kulkarni.

Service Tax Detail while recording a purchase invoice from T-Code F-43

Dear Sir,
I am passing a Professional Fees Invoice, where in service tax is being charged, through T-Code F-43
Kindly let me know the following.
1. Where do I store the vendor's service tax registration detail?
2. Where do I store the service category under which the service tax is being charged?
Regards & Thanks in anticipation
Chirag Shah
Edited by: CHIRAG SHAH on Dec 29, 2011 8:25 AM

Dear expert
1. Where do I store the vendor's service tax registration detail?
ans: vendor master inside CIN detail-
CIN details not coming in Vendor master
T:CODE:OMT3E
or
Go to SPRO > Logistics General > Tax on Goods Movement > India > MasterData > Assign Users to Material Master Screen Sequence for Excise Duty.Select User Screen reference and add the user name- after it will comes to vendor master there you can add details
2.Where do I store the service category under which the service tax is being charged?
service tax - access seq
Service Tax Liability - India - w.e.f 01 July 2011 Changing to Accrual
Regards
Ajeesh.s

Input credit on Service tax after making payment to vendors

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