Input tax credit service tax
Hi Gurus
As everyone knows service tax credit can be taken only when it is paid to vendor. How this problem is solved in SAP. I mean when i make payment to vendor the entry for service tax entry should be passed.
Useful answer will be assign with points.
Regards
NNS
hi,
We had similar problem in our company. We have developed a zreport which gives the information of vendor invoices that are paidt. Based on the report, we are manually transferring the amounts from input service tax clearing account to Service tax credit account.
Regards
Rajanikanth
Similar Messages
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Creation of Tax Code - Service Tax + VAT
Hi,
I want to create new tax code
Service Tax - 4.12% + VAT 5%.
The steps i followed is in FTXP,
1. Against JSRN given value - 4.12
2. Against JVRN given value - 5%
But it gives me error. Define tax code at level 510.
I want to create new tax code SV which includes Service Tax + VAT.
Kindly let me know the proper way to do it and where i am going wrong.
Regards
ManishaHi,
My problem is not yet solved.
I want Service Tax - 4.12% + VAT-5% under one Tax code SV.
I repeat I have created tax code SV
In FV11,
for JSRN i give tax code SV and value 4.12% for Service Tax but for JVRN when i give tax code SV and value 5% it gives me error :
'Tax indicator SV has percentage rate 4.12%'.
Kindly let me know proper solution, i have checked settings are all proper as per your replies.
Just let me know how do i create the two taxes JSRN and JVRN under one tax code SV because SV accepts only one fixed value.
Regards
Manisha -
Input tax, output tax, VAT & service tax,
Dear all,
I have configured tax on sales & purchase.
My client wants the following combination.
Service Tax , input tax,output tax, with VAT & without VAT. I have also configured. Can anyone tell what are the GL accounts that have to be assigned in OB40 under what transaction. for example MWS, VST, etc.?
i will assign good points.
Thanks in advance,
Regards,
A.Anandarajan.> Dear all,
>
> I have configured tax on sales & purchase.
>
> My client wants the following combination.
>
> Service Tax , input tax,output tax, with VAT &
> without VAT. I have also configured. Can anyone tell
> what are the GL accounts that have to be assigned in
> OB40 under what transaction. for example MWS, VST,
> etc.?
> <b>Hi for the input and out tax-service tax VAT accounts u need to define a GL account which should be a BS account and on the GL account settings (FS00)
enter * in the tax category so that it will accept all taxes. Check for the actkey (MWS, VST etc ) and assign proper GL accounts defined in the above step in OB40.</b>> i will assign good points.
>
> Thanks in advance,
>
> Regards,
>
> A.Anandarajan. -
Deffered Tax Transfer - Service Tax Advance payment
Hi,
I have created two Tax codes for service tax S1 and S2 for interim and final. While receiving the advance payment I am using the final service tax code S2 and while posting the invoice i am using the interim service tax code S1. I am clearing the advance against invoice using the T.code F-39. When I am running the derrered tax transfer S_AC0_52000644 the system is not picking this partly paid (adjusted the advance) invoice. Both the tax codes are having more than one tax rate like base rate, edu.cess and H. edu.cess. I also created another tax codes I1 and I2 with one tax rate for all base rate, edu.cess and H edu.cess and while doing the above transactions the system is picking the document.
Could you please let me know what is the reason the system is not picking the document in the first case.
Advance thanks for your help and Regards
Koteswara Rao Padartihi...
please dont use a deffered tax code for down payments...
Raghav -
Asset PO with Installation charges and service tax?
Hi Sap guru's,
I searched for this topic but could not find answer. I want to create a Asset PO which had Installation charges (with Service tax). Now I want to incorporate the installation charges with its service tax to the asset account. I tries many ways but could not find the solution. Please, help me <removed by moderator>
Thanks,
Karteek.
Message was edited by: Jürgen LHi,
You needs two tax codes!
You PO contains 2 line items, so create 1st line item with a tax code(S1) of 5% non-credit tax and 2nd line item with another tax code(S2) of 12.36% non-credit service tax.
Both tax code S1 and S2 should have created with service tax condition with different tax percentage 5% and 13.62 % respectively where the same service tax condition type should assigned to NVV key in your tax procedure.
Regards,
Biju K -
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 AssetsHI, 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 Effects to be checked in case of Raising of Sales Service
Dear All,
Kindly advise me the configuration process for the following transactions :
Events
At time of Booking of Invoice for Sale of Service
Item Nature
Normal Accounting Document
Cr Sales Service P&L Income
Dr Customer A/c 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 Receipt of Payment from Customers
Normal Accounting Document
Cr Customer A/c Bsheet Assets
Dr Bank Account Bsheet Assets
Dr TDS (BasicSurCess+SHE Cess) Bsheet Assets
Service Tax Document (Proportionate to Amount Received)
Dr Service Tax Payable (Interim) A/c Bsheet Liability
Dr Cess on Service Tax Payable (Interim) A/c Bsheet Liability
Dr SHE Cess on Service Tax Payable (Interim) A/c Bsheet Liability
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 AssetsHI, 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 -
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.
JayDear 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 -
Hi
As per service tax rules, service tax needs to be paid to government only when th amount is received from customer. So at the time of booking invoice, credit must go to service tax interim account and not service tax payable account. Similarly in case of advance, we need to pay service tax once the amount is received even though invoice is not billed to customer.
Let me know how to handle this.Dear
As per my understanding, when an invoice is created the entry is
Customer A/c Dr xxxx
Income A/c Cr xxxx
Service Tax A/c Cr xxxx
Now you want to assign Service Tax Clearing Account in the above entry. Upto that stage it is OK. Then when you receive Service Tax amount from Customer naturally you give credit to Customer Account since billing is already done for service tax and here you cannot give credit to clearing account. Then by assigning/giving above clearing account does not serve our purpose.
In my view it is better not to debit Customer at all at the first instance with service tax amount.
So when you receive service tax amount, directly you can give credit to Service Tax payable account from where you can pay to the authorities.
Regards -
Dear all
I want complete CIN cycle for service tax which will cover following
1. Service PO with tax code for service line item level ( what config required for the same )
2. what is Importance of the tax code in service entry sheet
3.CENVAT Creadit handling for service tax
4.Service tax report based on Service Number or service group in (FBL3N) &
5.What are other report avaiable for services & service Tax
in Addition to above we are also having one plant which is not register for excise but we are having
service tax registration for the same what will be the setting in CIN for that Plant & what about excise
group for the same plant
Please explane this also
ThanksHi
Service tax
Use SAP standard Service Tax condition as "JSRT" or "JSER" and copy these conditions as "JEC3" (A/P ECS for ST) and "JSEC" (A/P SECess for ST). Use OBQ1 to createcondition tpes.Mainbtain Access Sequence as "MWST" for the condition types.
And for the conditions maintain
Cond. class D Taxes
Calculation type A Percentage
Cond. category D Tax
And then assign it in tax Procedure Taxinn in OBQ3 with the account keys for the same..
Use OBCN to create account keys.
Assign g/l accounts in OB40 for the A/c Keys
And then create Tax Code in FTXP for Service Tax.
Enter tx code in PO
During MIRO accountign will be
Vendor A/c - Cr
GR/IR Clearing - Dr
Service Tax A/c - Dr
Ed Cess on ST A/c - Dr
Sec. Ed Cess on ST A/c - Dr
And then utilize the Service Tax Values by specifying these GL Accounts in selection screen of J2IUN
Under u201CCross utilization b/w Service tax and CENVATu201D Tab
u2022 Service tax credit account -
u2022 ECESS on ser tax account -
u2022 SECess on ser tax account -
And utilize the CENVAT from Service Tax Accounts.
Also chk Check help.sap.com for more help
Reg
Raja -
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 DasThis issue is closed
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Service Tax - Key Combination to Maintain Condition Record
Dear Experts,
Can anybody please explain which Key Combination is to be selected while maintaining Condition record for Service Tax ( 0% service tax and Service tax 12.5 + ECS).
I have created two tax codes - S1 and S0. please explain the procedure to maintain condition record for Service Tax.
Thanks in Advance.HI,
TAXINN is condition based. The functionality does not work with tax codes, tax codes are for informative purpose..
JMX1 can be maintained in FV11 with the help of a key combination.
When you create this condition with respect to vendor/material combination then when a PO is made with these 2 combination the system gets the percentage / value from the condition record and calculates the price.
Thanks & Regards,
Kiran -
Service tax Utilization under plant
Hi Experts,
I have one Utilization problem regarding Service.
Here I have one company Code under which six regions and one mfg plant.
Service tax is paying to suppliers from regions and the same is passing to Plant for utilization against Cenvat.
The above case how will I do the configuration and what are all the G/L account required.
Thanks&Regards,
BramhaHi,
First check have you maintain the service tax G/L accounts in
PATH : SPRO > IMG > Logistic General > Tax on goods movement > India > Service Tax > Assign Service Tax Accounts
then maintain the number ranges for below three object with SNRO
1: J_1ISERCRD
Note: No. range use when we pay CENVAT from cenvat & service tax CR on J2IUN
2: J_1ISEREXT
3: J_1ISERPAY
Note: No. range use when we pay Service tax from cenvat & service tax CR on J2IUN
make the above settings and again try the utilization.
regards,
zafar -
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 DasHi
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 -
Profit Center to be updated in Service Tax GL's as per Project Profit Cente
Hello Experts
We are facing a problem please if any1 can help?
In case of Billing Document with Service Tax Code, Service Tax line items require Profit Center field.
If we maintain Default Profit Center in FAGL3KEH, then system picks only that Profit Center against Service TAx GL's.
But for each Projects there is Profit Centers & also 1 Plant assigned in Project System.
Now for all Profit Center's there are only 3 Service TAx GL's(Main GL, Education Cess & S & HS ECess).
In FAGL3KEH, we cannot maintain same GL's for different Profit Centers.
Client Requirement is that, In Service TAx GL's line items in Journal Entry Profit Center to be updated as per Profit Center of Project.
So where can we do such settings?
Can Profit Center field be updated in an entry based on Project chosen for entering Billing?Hi,
Are you generating the billing docuemnt aginst the Project/WBS element. if so please delete the default account assignment to service tax accounts. it will read the Profit center from Revenue line item int he delivery document.
Regards
Murali
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