New Service tax mapping effective from April 2011

HI Experts,
Service tax rule has changed wef from 1st April, 2011 on
foreign exchange related transactions. The Notification No 26/2011
Below given are the slabs for calculating the new service tax
Gross amount of currency exchanged % of
service tax on transaction value
Upto Rs.1,00,000/-
0.1% or Rs.25
whichever is higher
From 1,00,000-10,00,000/-
100 and 0.05% on amount between
1,00,000 & 10,00,000/-
Amount exceeding 10,00,000/-
Rs.550 and 0.01% on amount exceeding
Can any one help for mapping this senario or any body implemented the same
Thanks in Advance
Regards,
Ram

Hi,
Note 1435105 - Master note for Indian Budget 2010 for Logistics (MM & SD) - this was the master note for impementing the service tax.
But now as service tax regulations have changed we need not configure the old service tax postings i.e postings to interim service tax accounts.
As and when the service is invoiced directly it can be booked to Service Tax Payable/Receivable accounts, previously the postings were made to Service Tax Payable/Receivable Interim Accounts. Later the amounts of the interim accounts were transferred when the invoice is paid.
Note 1571186 - Changes to Service Tax from Indian Union Budget 2011-2012 - please find the latest note on this.
In the above note there is zip file attached which expalins about the changes to be done and about the old postings.
thanks & regards,
shashi kanth.

Similar Messages

New Service Tax code ( FTXP)

Hi All
As you all are aware that service tax rate has changed from 12.36% to 10.3% my client is using TAXINN , i have to creat new service tax code that i will do from copy from one service tax to another , but my concern is that i shoul have to maintain condition record for this tax code or the earlier conditon work for the new tax code
Thanks & Regards
Amit Kumar

Hi Amith
I am new to the TAXINN procedure. I am trying to configure the new service tax code but not getting thru. Can you please share the detailed steps for creation of new service tax code.
However, I am giving below the the steps which I have done :
1) FTXP where new code is created
2) OB40 - GL is assigned
Do i need to work on FV11 ? Or did I miss anything ?
Please guide me the further steps to be configured. My requirment is very critical and needs to be configured immediately.
Thanks
Gemini

New Service tax code creation

Dear Sir,
I want create a new service tax code with 1021 % & i want to assign the g/l codes.
So advice the t.codes & procedure.
Regards,
Prasanna

Hi,
1) Check what is the claculation procedure assigned to your country -
SPRO>>Financial Accounting (New)>>Financial Accounting Basic Settings (New)>>Tax on Sales/Purchases>>Basic Settings>>Assign Country to Calculation Procedure
2) Check wether condition types and account key for Service tax, Cess and HCess has been maitained for the Procedure -
SPRO>>Financial Accounting (New)>>Financial Accounting Basic Settings (New)>>Tax on Sales/Purchases>>Basic Settings>>Check Calculation Procedure - Define procedures.
3) If the Condition types are not maintained, create them and include them in the procedure (you can take help of a SD or MM consultant who knows how to define a pricing procedure).
4)Define your account keys if not already maintained -
SPRO>>Financial Accounting (New)>>Financial Accounting Basic Settings (New)>>Tax on Sales/Purchases>>Basic Settings>>Check and Change Settings for Tax Processing.
Here, you will give the description, tax type as input or output as per your requirement and posting indicator as 2.
5) Assign accounts -
SPRO>>Financial Accounting (New)>>Financial Accounting Basic Settings (New)>>Tax on Sales/Purchases>>Posting>>Define Tax Accounts
Here you can maintain the GL account by double clicking ont the account key created in the earlier step.
Posting key - 40 and 50, and maintain the GL account by selecting the Accounts tab.
6) Use transaction code FTXP or the path
SPRO>>Financial Accounting (New)>>Financial Accounting Basic Settings (New)>>Tax on Sales/Purchases>>Calculation>>Define Tax Codes for Sales and Purchases
and enter country and the ID for the tax code you want to create , Give the description and mention if it is input or output tax.
In the next screen, enter the rates against the relevant condition types.
Please revert in case of any clarification.
Thanks and Regards,
Anit

Service Tax for transfer from Interim to final account

Dear Guru's,
We are following the TAXINN Procedure. we are at SAP ERP ECC 6.00 version.
As per the Note 921634 they specified the defered tax code and target tax code. and the program RFUMSV50 for transferring the service tax from the interim account to the final account.
When we executing the program RFUMSV50 the layout is displayed by the system but the data is not displayed by the system.
Please suggest me in the following situations
1. First of all, whether this Note is applicable to the TAXINN condition procedure or not.
2. If Yes, do we need to maintain the following customising setting at company code level as per the note 921634
   - Maintain the deferred tax rule.
   - Assign deferrred tax rule to company code
   - Create a tax codes like deferred taxcode and target tax code.
3. If not is there any other note for TAXINN for transferring the interim account to the final account
Thanks for your cooperation.
Thanks and Regards,

These are all Part Of FI MM Integration, Discuss with your Finance Team.
Some of the Integration points are below
1. The complete Purchase cycle upto payments
2. Posting made during the purchase cycle and how the integration takes place with FI & CO, including the OBYC settings
3. The Tax procedure for input & output tax and how the same is used in MM
4. The configuration and use of Excise, if you are in india and how the processes are mapped in SAP
5. The Service Tax Configuration, including GTA and the configuration
6. How to utilize service tax credit in excise and the process for mapping service tax through deffered tax configuration
7. Stock Keeping Accounts for stock

T CODE MIRO- Service tax mapping

I am making an entry through miro . this is a normal invoice entry. where i select expense account. vendor account credit and expense account debit.
With this i am selecting a tax code which has service tax the component are as follow
service tax 10%
education cess on above 2%
Secondary and higher educ cess 1%
the three accounts are defined as expense account by us , but while passing the entry i select a particular cost center in the expense line item. the above three accounts are autopost which are picked up when the entry is simulated. the profit center picked up by the above three gl account is based on business area and profit center mapping, but the cost center put in the expense line item is different which picks up different profit center.
we have a mapping of Business area to profit center , our requirement is while passing the entry the cost center put in the expense line item should be picked up by the above three service tax line items also which are automatically generated on simulation.
Is there any solution on this.
Your solution will be adequately rewarded.
Regards
Prashant Zinge

thanks

CIN: How to transfer service tax credit from interim a/c to final a/c.

Hi,
When a service vendor raises an invoice on our company we post the vendor invoice.At that time the service tax paid goes to the interim service tax a/c.
When we make payment to the vendor the Service tax credit balance is transfered from interim a/c to final service tax a/c. The final service tax a/c is then used for utilization of service tax to be paid for output services.
The transfer of service tax credit from interim a/c to final a/c happens when i run the report S_AC0_52000644(Deferred tax transfer), but from April 2011 this is not happening?
Any idea on why the service tax credit from interim a/c is not getting transferd to final servic tax a/c?
When i run the report it shows list contains no items?

Dear Sanjay,
I have a few doubts in Service tax.
1. while posting the service tax got Dr and when i'm giving the payment to vendor in the service tax amount no change. you said when you do the payment the service tax amount transfer from interim account to Main a/c. can you give me the solution what i have done mistake and what i need to do till to rectify it?
2. when i'm running program S_AC0_52000644 system saying for selected company code no deferred tax. what is the problem ?
3. how can i clear the service tax open item witch is posted Dr at the time of invoice? what is the process ?
can you please give me the solutions i have strucked at this stage in service tax. please help to come out from this problem.
Thanks & Regards,
sreehari.

Service Tax Payable Transfer - Incorrect Amounts

Dear all
I am facing the following issue while using S_AC0_52000644 - Tax Reports -> General -> Deferred Tax -> Deferred Tax Transfer (New) for transfer of Service Tax(Output) from Interim to Payable accounts -
The accounting entry that is generated at the time of Billing document is as below -
Customer                        110,300.00
Domestic Sales                          100,000.00-
Output Service Tax Interim Basic     10,000.00-
Output Service Tax ECS Interim     200.00-
Output Service Tax H & ECS Interim     100.00-
Hence, ideally the service tax that should be transferred from Interim to Final Payable should be Rs 10000, Rs 200 and Rs 100. However, when i execute the transfer program, the amounts that are getting transferred are not correct, the base amount gets changed. In the present case for e.g for Output Service Tax Interim Basic, the base amount is displayed as 109,510.22 and the tax amount as 10,142.65.
We are using TAXINJ and have maintained the 2 tax codes i.e deferred and final. The tax rates are maintained at the tax code level in FTXP and the rates are 10%, 2% and 1%.
Any help on this issue will be highly appreciated.
Thanks
Hrishi

Hi:
        Please see the OSS Note 921634 - Service tax India: Transfer from Interim to Final account to rectify the issue. There seems an issue with your routine assignment and activation in VOFM (ask SD Guy). Also check in FTXP if this tax code has more than one line item. If there are then deactivate the one not required. Another way to avoid this issue is to go to FS00 and in the control tab, select indicator "posting without tax code allowed" ..
Regards
Edited by: Atif Farooq on Sep 30, 2011 7:16 PM

Service Tax credit posting not happening at the time of Service Entry sheet

Hi
I am accepting (releasing) service entry sheet of some services. Entry was posted:
Service Expense A/c.. Dr
To SR / IR A/c...
As per new service tax law, we can take credit at the time of accrual of services i.e. at the time of accepting service entry sheet. But the service tax posting is not done at the time of expense booking (see above entry). Service tax posting is done at the time of MIRO (invoice verification).
Entry Requirement:
Service Expense A/c.. Dr
Ser Tax Basic A/c... Dr
Ser Tax EC A/c... Dr
Ser Tax SHEC A/c... Dr
        To SR / IR A/c...
Please help how to take credit at the time of posting service entry sheet itself.
Edited by: Meenu_ND on Aug 5, 2011 1:39 PM

HI All,
I hope what he (Meenu_ND) menctioned int he first thread was correct. Service Tax Credit you can avail at the time of Invoice Booking or the Payment and not at the time of Service Etnry Relise. Please check once.
Regards

Service Tax credit entry not happening at the time of Service Entry sheet

Hi
I am accepting (releasing) service entry sheet of some services. Entry was posted:
Service Expense A/c.. Dr
    To SR / IR A/c...
As per new service tax law, we can take credit at the time of accrual of services i.e. at the time of accepting service entry sheet. But the service tax posting is not done at the time of expense booking (see above entry). Service tax posting is done at the time of MIRO (invoice verification).
Entry requirement:
Service Expense A/c.. Dr
Ser Tax Basic A/c... Dr
Ser Tax EC A/c... Dr
Ser Tax SHEC A/c... Dr
        To SR / IR A/c...
Please help how to take credit at the time of posting service entry sheet itself.
Edited by: Meenu_ND on Aug 5, 2011 1:38 PM

HI All,
I hope what he (Meenu_ND) menctioned int he first thread was correct. Service Tax Credit you can avail at the time of Invoice Booking or the Payment and not at the time of Service Etnry Relise. Please check once.
Regards

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 .

Avail service tax and its Eces,SECESS?

hii all,
Can some body explain me about the service tax scenrio with ecess and secess.
how to avail the service tax ,ecess on service tax and secess on service tax.
Explaination in detailed way is appreciable.
thanks

Service tax
Background: As per legal requirement, service tax credit can be only availed on the payment to the vendor either full or partial payment.
In the case of sales, service tax is liable to pay to government only on the receipt of sales proceeds for services.
The Approach adopted here is that while booking the liability, Service tax amount will be kept in a u201Ctransit u201Caccount (e.g. service tax on hold Account). Periodically a program will be run which will transfer the Amount from: u201Con Holdu201D account to Service Tax Receivable Account.
Mapping of above scenario in the SAP environment using following SAP Notes
921634 Service tax India: Transfer from Interim to Final Account
For ERP 6.0 use additional notes 1073292, 1073447 & 1076653.
Support Pack level: 10
Please check that notes 785561 and 817486 are implemented in your system or an appropriate SP is installed.
u will get the details in SAP note 921634
and for credit
when u do J2IUN
on the first screen down u will have to put
service tax final gl account
ecess of final st gl account
hecess on ST final Gl account
hope this helps

Service Tax Problem

1. We are on ECC 6.0.
I am doing configuration of service tax as per SAP notes 779512 and 921634 -Transfer of service tax from interim to final account automated.
Notes tells:
In releases higher than ERP2005 it is necessary to check that the following BTEs are active
00001025 FI-TAX CREATE_DEFTAX_ITEM
00001030 FI-TAX SET_DEFTAX_ITEM
00001040 FI-TAX CREATE_DEFTAX_ITEM_REVERS
00001050 FI-TAX CREATE_DEFTAX_ITEM_MR1M
You can use the following transaction:
FIBF->Settings->P/S Modules-> ... of an SAP Application
Do I have to give IN as country or keep it blank the country column?
2. When I am executing report RFUMSV50, nothing is displayed in the output. What is the issue?
3. If i execute the report RFUMSV50 for batch session, in sm35 no session is created. When I first time ran, then batch was created. i have not changed anything in settings. After that I posted 5 end to end cases from po to payment. now if i run report no batch session is created
where is the problem?

Hi Vivek,
     I agree with u,,
     I had followed the same procedure as u mentioned and got the calculation as follows:
     Transport charges = Rs. 200/-
     Service Tax 3% = Rs 6/-
     Vendor A/c = Rs.201.76/-
               (transportation charges = Rs.200/- Service Tax = Rs.6/- TDS = Rs.4.24)
     TDS (on Rs.206@ 2.06%) = Rs. 4.24
but my client requirement is ,,, he want to deduct the service tax = Rs.6/- from Vendor A/c ,, client want to pay this service tax Rs.6/- to Govt on behalf of Vendor ,,,,
    so finally what they require is :
    Transport charges = Rs.200/-
    Service Tax 3% = Rs. 6/-
    Vendor A/c = Rs. 190.01
      (transportation charges = Rs.200/- Service Tax = Rs.6/- TDS = Rs. 3.99)
    TDS (on Rs. [email protected]% = Rs.3.99
    how it is possible,,, is there any option for doing this? help me out,, its urgent,
regards,
urendra

Service Tax program

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

Diference between Service tax and GTA service tax

Hi,
Kindly tell me what is the difference between service tax and GTA service tax and their accounting entries in SAP ?
With Regards,
Samrat

Hi,
Service Tax is charged by the service vendor and you pay the service tax to the vendor along with his payment. Once you pay the service tax, it is the liability of the vendor to pay the service tax amount collected from you to the Government.
GTA is Goods Transport Authority. When you receive any service from any transport vendor, he will not charge service tax from you though it attracts service tax. It is your liability to pay the service tax to Government for the services received from the transport vendor.
In case of normal service tax it is treated as input tax and credit for the same is taken (similar to excise). But, in case of GTA you have to create the liability at the time of receiving the service and make the payment directly to the Government.
Regards
Ramakrishna

Service tax code

Hi All,
I want to create the new service tax code as per below mention calculation.
Material cost = 100
Cost on which service tax need to ba calculated = 33% of 100= 33
So my service tax will be 10.3 on Rs 33 which is Rs. 3.4
VAT should be calculated on material cost + Service tax = 100 + 3.4 + 103.4 which will be 5.16
Please help me to create such kind of tax code.
Regards,
Nandkishore Nachane

Nandkishornachane wrote:
Hi All,
>
> I want to create the new service tax code as per below mention calculation.
>
> Material cost = 100
>
> Cost on which service tax need to ba calculated = 33% of 100= 33
>
> So my service tax will be 10.3 on Rs 33 which is Rs. 3.4
>
> VAT should be calculated on material cost + Service tax = 100 + 3.4 + 103.4 which will be 5.16
>
> Please help me to create such kind of tax code.
>
> Regards,
> Nandkishore Nachane
Hi,
F or this you have to create tax code in ftxp as s1.
in that code you have to given the description as service tax+vat
and use the all conditiontypes which are nneded for your calculation use all condition types in your procedure in ob40
and given the percentages for your condition types in fv11.
after that use this tax code at the time of p.o creation.
Thanking you.

New Service tax mapping effective from April 2011

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