Servce tax and cess on freight

Dear gurus,
let me know is there any configuration for the provision of service tax & cess on freight.where we maintain .
regards
ravikanth

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

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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

PO tax and cess

hi gurus,
I'm trying to print tax and its associated cess for a Purchase Order for an indian company.
Plz send me the code for it as my fuctional consultant is on holiday.
Best solutions will be rewarded.
Thanks n rgards,
vinay.

Hi Vinay ,
Ecee + TDS for PO maintained @TAX code level ? get the Condition numer from EKKO/PO and get tax details from KONV /KONP.
Please ref. my postings on the same issue.
Regards
Prabhu

A/R Installment Payments with Sales Taxes and Freight in 1st payment

Our sales dept. wants to offer our customers Installment Payment plans (6, 12, 24 mths) for product sales which is easy enough to set up using Payment Terms and the Installment Payment flag.
But our Accounting Dept wants to collect the Sales Taxes and Freight "up front" in the first payment.
We do not want to use Milestone billing since Accounting wants to recognize the revenue of the sale during the month of the sale ... so a single Invoice to the customer with the Payment Plan printed on the invoice is the option they want done.
I have not been able to find any way to set up the Installment Plan configuration to do such a thing. The Terms of Payment refer to the total Invoice amount.
Has anyone here be able to accomplish such configuration (without doing custom coding in a User Exit)?
Example: $60,000 item, %5,000 tax, $100 frieght = $65,100 total invoice. (6 month payment plan)
   Payment #1 = $15,100
   Payment #2 = $10,000
   Payment #3 = $10,000
   Payment #4 = $10,000
   Payment #5 = $10,000
   Payment #6 = $10,000

I have already set up the installment plan in OBB9 with 6 entries (1 - 6) for my IP Payment Term of IPM1. I have the percentages setup as 16.67 for each of the installments and the last set at 16.65 (equaling 100%).
The problem with Sales Tax and Freight is that you can not simply assign an arbitrary percentage to the 1st installment (for example make the 1st installment 25% and break up the remaining 5 installments fromt he other 75%).
We need to make sure that the first Installment from the customer is for the Sales Tax, the Freight, and exactly 1/6 of the material cost (if it is a 6 month payment plan).
I have activated User Exit EXIT_SAPLV60B_007 to intercept table generation of the installment plan that is sent to Accounting to fix this problem. Now the Accounting document connected with the customer invoice is correct. My next step is to fix the SmartForm print of the Installment Plan on the customer's Invoice.

Tax Jurisdiction report: Taxable freight

Dear All, I have a question for Tax Jurisdiction report: Taxable freight column. What's that for? I saw it in 2007 and 8.8. But i don't know how to make it. I tried to add freight to each line but I got a 0 on Freight 1 Tax (FC).
Thanks in advance.
Regards,
Yuka

Hi,
As per the online help(F1)
Taxable Freight in Tax Jurisdiction Report is "Amount of the freight that is subject to tax"
Please check whether the freight code which is defined by the users is subjected to be applicable for tax as well or not.
Check the same in the Demo Database.
Kind Regards,
Jitin
SAP Business One Forum Team

F-48 TDS on Base Amount Excluding Service Tax+Edu Cess+H.ecess (194J)

Hi Expert,
We want at the time Advance Payment against PO. thru T.Code F-48, when i go to give the amount after Deduct TDS 10% on Professional System calculate all three Item i.e Service Tax 10%, Educational Cess 2% on Service Tax, and Secondary & Higher secondary Cess 1% .
The total Amount Rs. 1826/- Including Three Component Base amount Rs.1625/-.
We want system Calculate on Base Amount i.e 1625 of 10% = 162.50, but system calculate on Gross total i.e Rs.1826 and Tax 182.60.
Kindly Help me to simulate the Transaction.
Kind regards
Pranav Kr. Gupta
SAP FICO Consultant

Hello Pranav,
Select radio button as Net amount instead of gross amount in mentioned customization.
SPRO > Financial accouting New > Withholding tax > Extended withholdign tax > Calcualtion > Withholding tax type > Define withholding tax type for invoice. Double click on relavent TDS type & change gross as net and check impact,which we are using since notification annouced by Income tax department.
Regards
Mani Kumar

Reg. Tax and VAT calculation in a PO.

Dear Experts
We want to maintain both tax and vat for a po, if we use both the VAT didn't calculated in PO,manual excise and other cess are calculated. Pls help me how to maintain both in a PO.
Thanks
Rajakumar.K

Hi,
1- Pls check in FV12 combination for tax and vat condition types.. is it maintained on same logic i,e tax code or mat./plant/vendor... should have same combination..
2- check the both condition types date have correct validation date.
3- maintain the tax and vat condition types rates in ME11or MEK1

How the system picks BED,SED and CESS

Hi Gurus,
I want to know how the system picks the BED,SED and CESS while doing the J1IIN. Actuvally i maintained the condition records in VK11. But upto Billing document all the excise duties are coming right. But in J1IIN these values are not coming. Is there any place to mention the BED ,AED, SED other than VK11?
Reegards,
jyothi.

Hi Friend,
Please check all these settings and find out what are you missing,
IMG > Logistics - General > Tax On Goods Movement > India > Basic Settings > Determination of Excise Duty >
Condition-Based Excise Determination
When you enter a purchasing document, for example, a purchase order, the R/3 System automatically calculates the applicable excise duties using the condition technique.
Features : The standard system comes with two tax calculation procedures. TAXINN is only supports condition-based excise determination, whereas TAXINJ supports condition-based excise determination and formula-based excise determination. Both tax procedures contain condition types that cover all of the excise duties and sales taxes applicable.
Since the exact rates of excise duty can vary on a large number of factors, such as which vendor you purchase a material from, or which chapter ID the vendor stocks the material under, you create condition records for every sort of excise duty.
When you come to enter a purchasing document, the system applies the excise duty at the rates you have entered in the condition records.
Customizing : Make the settings in Customizing Basic -> India -> for Logistics General, by choosing Taxes on Goods Movements Account -> Excise Duties Using Condition Technique and -> Settings Determination.
These activities include one activity where you define a tax code for condition-based excise determination.
Master Data - Create condition records for all excise duties that apply, and enter the tax code for condition-based excise determination in each.
Day-to-Day Activities - When you enter a purchase order or other purchasing document, enter the tax code for condition-based excise determination in each line item. The system then calculates the excise duties using the condition records you have created.
When the ordered materials arrive, you post the goods receipt and the excise invoice. The system posts the excise duty to the appropriate accounts for deductible input taxes when you enter the excise invoice.
Creating Condition Records for Excise Duty
1. In the command field, enter FV11 and choose .
2. Enter the condition type that you want to create a condition record for and choose .
The Key Combination dialog box appears.
3. Select the combination of objects that you want to create the condition record for. On the dialog box, Control Code means "chapter ID." So, for example, to create a condition record for a tax that applies to a combination of country, plant, and chapter ID, select Country/Plant/Control Code.
4. Choose .
5. Enter data as required. - In the Tax Code field, enter the dummy tax code that you have defined.
6. Save the condition record.
Formula-Based Excise Determination - When you execute a business transaction involving materials that are subject to excise duty, the system automatically calculates the duty for you.
In order for the system to be able to determine which rate of excise duty to apply, you must have maintained all the data on the Excise Rate Maintenance screen, which you can Master Data®access from the SAP Easy Access screen by choosing Indirect Taxes Excise Rate Maintenance.
You maintain the following types of data:
- Plant master data
You assign each of your plants an excise duty indicator. You can use the same indicator for all the plants with the same excise status from a legal point of view, such as all those that are in an exempt zone. See also the information about manufacturers that are only entitled to deduct a certain portion of the duty (see Partial CENVAT Credit).
- Vendor master data
For each of your vendors with the same excise status from a legal perspective, you define an excise duty indicator. You must also specify the vendor type for example, whether the vendor is a manufacturer, a depot, or a first-stage dealer. You must also stipulate if the vendor qualifies as a small-scale industry. For each permutation of plant indicator and vendor indicator, you then create a final excise duty indicator.
- Customer master data
Similarly, you assign the same excise duty indicator to each of your customers that share the same legal excise status.
Again, for each permutation of plant indicator and customer indicator, you then create a final excise duty indicator.
- Material master data
Each material is assigned a chapter ID.
- Excise tax rate
For every chapter ID and final excise duty indicator, you maintain the rate of excise duty.
If your business only qualifies for partial CENVAT credit, you must customize your system accordingly.
Let us consider an example to illustrate how the system determines which rate of excise duty to apply to a material. Assume you are posting a sale of ball bearings to a customer. The system automatically determines the rate of excise duty as follows:
1. Looks up the customer master data to see what status you have assigned the customer.
Let's assume you've assigned the customer status 3.
2. Looks up the plant master data to see what status you have assigned the plant. Similarly, your plant has status 2.
3. The system looks up the table under Excise Indicator for Plant and Customer to see what the final excise duty indicator is for customer status 3 and plant status 2: It is 7.
4. The system determines the chapter ID of the ball bearing for the plant.
Lets assume the chapter ID at plant for the ball bearings is 1000.01.
5. Finally, the system looks up the table under Excise Tax Rate to see what rate of duty applies to chapter ID 1000.01 under
status 7.
Define Tax Code for Purchasing Documents - In this IMG activity, you define a tax code for the purposes of calculating excise duty when you enter purchasing documents. Only carry out this activity if you use condition-based excise
determination.
- Create a new tax code, and set the tax code type to V (input tax). Do not make any other settings for it.
- Assign Tax Code to Company Codes
In this IMG activity, assign the tax code for purchasing documents to the company codes where it will be used.
Only carry out this activity if you use condition-based excise determination.
Classify Condition Types - In this IMG activity, you specify which condition types you use for which sort of tax. Note that this only applies to condition types that you use with the new excise determination method. The system uses this information when you create a document from another one. For example, when you enter an incoming excise invoice from a
purchase order, or when you create an outgoing excise invoice from a sales order, the system determines the various excise duties in the excise invoice using the information that you have entered here. In addition, when you create a purchasing document, the system only uses the condition types that you enter here.
- For taxes on purchases, use the condition types contained in the tax procedure.
- For taxes on sales, use the condition types contained in the pricing procedures.
The standard system comes with sample settings for the tax calculation procedures and pricing procedures.
Use these settings as a basis for your own.
IMG > Logistics - General > Tax On Goods Movement > India > Account Determination
Define G/L Accounts for Taxes - In this IMG activity, you specify which G/L accounts you will use to record which taxes.
Requirements - You have set up G/L accounts for each of the processing keys listed below.
- Assign an account to each of the following posting keys. The accounts for VS1, VS2, and VS3 are used as clearing accounts during excise invoice verification.
- VS1 (basic excise duty)
- VS2 (additional excise duty)
- VS3 (special excise duty)
- VS5 (sales tax setoff)
- MWS (central sales tax)
- MW3 (local sales tax)
- ESA (service tax)
- ESE (service tax expense)

Tax and pricing procedure

hi sapers
what is meanning of requirement and alternating condition base value in pricing and tax procedure.thanks

hi,
this used for SD/MM
Requirement:
It is a routine that is written by an ABAP consultant according to the business requirement.
By defining Requirement in condition technique we can restrict the access of condition type.
To understand the concept, we will take the example of the Rebates. Rebates are to be included during the billing document processing and not in the sales document processing. As rebates are given on the delivered quantity and not on the ordered quantity (in case of cut-off period for rebates).
For rebates we use the condition types BO01 to BO05, and in the Requirement column we give the value 24 which is "Only in Billing Document".
This Requirement will ensure that these condition types will appear only during the billing document processing.
If new Requirements are to be defined we follow the procedure given below.
Go to T.Code: VOFM. - Maintain Requirements & Formulas
Click on the "Requirements" in the top menu and then click on "pricing".
We have a list of requirements, we can ask ABAP consultant to create new requirement based on the client requests.
And we assign the application type like V - Sales/Distribution etc.
AltCBV - Alternative formula for condition base value:
Formula for determining the condition basis as an alternative to the standard.
It is again a Routine that is written by ABAP Consultant.
It is used as a basis to calculate value of the condition type instead of using it from the "FROM" column.
Ex.: Freight - KF00.
Freight is calculated based on weight, volume etc. and not on the base price. In pricing there is no entry of weight from which the value can be referred like we do for discounts using base price. We have to get the value from the Material master.
In this column we can mention the value as 12 - Gross Weight or 13 - Net Weight.
During pricing, the system will consider the value that is mentioned in this column and determine the freight based on this value.
Suppose we have Net weight: 100 kgs and Gross Weight: 150 kgs. And if we mention 13 in this column then the Freight condition KF00 will be calculated using the weight as 100 kgs.

Total Tax and Non-Deductible column in Tax report

Hi all,
My client is using AU/NZ localization. We need to customise a Tax report based on existing Tax Report in Financal Report-> Accounting> Tax> Tax Report.
Does anyone know where to pull the information for colum "Total Tax" and "Non-Deductible"?
When I look at table CSI4, CSV4, ATX1, VRT1, OVTR, they are all empty. In addition, I can't find these information in JDT1 as well.
Appreciate your advice.

Shwu -
You cannot pull the tax informatin and non-taxable dollars for a single BP - it would all need to be calculated from invoices and credit memos (at least that is the direction we took).
You can (i.e. for customers) use calculations and sums with the OINV and INV1 tables - they both have the field of VatSum, I believe. OINV has DocTotal and INV1 has LineTotal that you can use. Getting the right calculation with those sums depends a lot on how your customer has determined tax for the BPs (i.e. freight is/is not taxable, discounts, various taxing entities, etc...).
I do not have the exact SQL in front of me, but I remember something like the following being the key calculation...
OINV.DocTotal minus the sum of INV1.LineTotals and minus the sum of INV1.VatSums = Non-Taxable (with my customer it ended up being a lot of freight appearing as non-taxable). So $1,014.00 (DocTotal) minus $1,000.00 (sum of LineTotal) = $14.00 then $14 minus $9.00 (sum of LineVatSum) = $5.00 as Non-taxable.
If you want to have the taxing entities to show, then it is a matter of joining in other tables (OSTA, etc...)
Try writing some SQL in the Demo System SAP provides first - just to get an idea of how it can go...
Good Luck - that is about as far as I can take you - Zal

Condition type for NCCD and Cess

We are using TAXINJ Tax Procedure.
One Vendor is Charging NCCD(1%) and CESS(0.125%) .So in Tax Procedure we want to Include NCCD and Cess.
Is there any SAP Standard Condition type as available or we can create our own condition type.
Regards
Sathish

If both Condition types are Quantity basis then you can Create New Condition types by Referring FRA1 & FRC1 Condition types.
Else Create New Condition types called ZCCH for Clearing Charges by giving the Following inputs:
Condition class A
Calculation Type A
Condition Category B
Plus/Minus A
Also in Control data Check Accruals option and in Scales tab give Scale Value as 2 if want.
Create New Condition types called ZLNC for Landing Charges by giving the Following inputs:
Condition class A
Calculation Type A
Plus/Minus A
Uncheck Accruals options and save.
Regards,
Ashok

Reg. TAX and VAT configuration

Dear Experts
In PO creation I have to maintain both VAT and CESS,and I have configured but only one is calculated that is VAT only calculated
CESS is not calculated showing 0.00,but can use any one either VAT or CESS,it is working, at a time both are not calculated.
Pls help me what is the configuration missed.
Thanks in advance
Rajakumar.K
Moderator: This thread has been locked due to crossposting.
Please do not post the same question in different forums.

Hi,
1- Pls check in FV12 combination for tax and vat condition types.. is it maintained on same logic i,e tax code or mat./plant/vendor... should have same combination..
2- check the both condition types date have correct validation date.
3- maintain the tax and vat condition types rates in ME11or MEK1

Servcie Tax registration Number

HI Friends,
We have following scenario while implementaion.Two Location
1.Dehli - Production + Service provider.having seperate service Tax registration number.
2.Mumbai - Only Service Provider Having seperation Servcie tax regi. Number.
Our issue is whether we have to define these 2 location as seperate plant or we have to define 1 Plant for these 2 location.?
Regards,
Chetan

Dear Chetan
Since no manufacturing activity is involved in Mumbai location, you can consider it as Sales Depot and Delhi as a plant.
thanks
G. Lakshmipathi

Excise and cess values disabled after saving excise invoice.

Hi,
We have a scenario where we do export under ARE1 form . My issue is as below.
The values BED, ECS, and SECess are now getting captured duting creation of excise invoice J1iin but they turn to 0.00 once i save the excise invoice.
we have created a bond and want to utilize against the bond unable to utilize .
I am able to generate ARE1 also but with zero values which is of no use.
So the exact issue is that table J_1IEXCHDR is not getting updated.
Also i need a confirmation whether during export the values of excise and cess shall be available in both excise invoice and ARE1. Has anyone worked on similar scenario.
Vivek

Hi Vivek,
If the excise values are becoming 0.00 during j1IIN.
You can use the userexit J_1I7_USEREXIT_DUTY_IN_EXPORT and pass the field
SUPPRESS_CALCULATION value as 'X'. This problem will be solved.
Brinda

My account 2yr contract ends in Nov 29th 2014, however, i want an iphone. Should i buy it paying it in full 750 dollars or just pay 299 tax and make another 2 yr contract? The reason im asking is im leaving US by May 2015. How much EFT will cost by Ma

My account 2yr contract ends in Nov 29th 2014, however, i want an iphone.
Should i buy it paying it in full 750 dollars or just pay 299+tax and make another 2 yr contract?
The reason im asking is im leaving US by May 2015. How much EFT will cost by May 2015? Do I have to return the device as well? or i can keep the device?

kiyoungtack1,
You have asked a great question! It is your choice how you would like to go about purchasing the iPhone. Do you currently have an iPhone? If so you can trade in your current iPhone and put it towards the purchase of the new iPhone 6 or 6 Plus at full retail pricing. http://bit.ly/GGnDDC Have you checked to see if you are eligible for Early Edge? If you would like us to investigate further into which option would be the most cost efficient to you please private message me so we can review further.
LindseyT_VZW
Follow us on Twitter @VZWSupport

Servce tax and cess on freight

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