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

Similar Messages

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

Service tax and Vat

Dear Expert
How did I can put service tax and vat in same PO line item.?
Pl suggest.
Thanks
Mayur

Hi,
1) Create one condition type ZWOR as Work Contract Tax(WCT) for VAT.
2) Create Service tax 10.3% (10,2,1) condition type as follows.
    a) Condition Type - JSVD for 10%
    b) Condition Type - JEC3 for 2 %
    c) Condition Type - JSE1 for 1 %
Using T-code FTXP - Maintain Tax code create service tax code and assign the above condition for the that service tax code.
PO creation time, you are using the above created service tax code with combination of VAT & service tax code and then posting time based on condition type vat and service tax value posted to separate GL.
Hope, it is useful for you.
Regards,
K.Rajendran

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

Taxes and duties on components for cost plan

Hi experts
I am working for below scenario:
The components those are planned must be added with applicable taxes for cost plan.
In case of imported goods, the applicable import duties need to be added to cost plan.
Similarly in case of external services, the service tax to be included.
For this purpose i wish to maintain different costing sheets (with various tax rates).
The relevant costing sheet is added in the activity/ component.
Is this OK or any other solution?
In this case, the predefined costing sheets to be used. As and when new rate comes in to picture, customizing to be done.
Any solution, with which user can make use of different variables easily?
warm regards ramSiva

Hi Virendra
I will maintain different costing sheets as follows:
00001: No overhead
00002: VAT 10%
00003: Service tax 12%
No one is defaulted with any of the profile.
I am thinking to make the field at activity level mandatory.
So, user has to choose the appropriate costing sheet at each activity level.
As the description is maintained with detail of tax, the user can choose the right one.
I request to comment and suggest if any easy way to achieve this requirement.
warm regards
ramSiva

SD: Service tax and sales tax

Dear All
My client has 3 plants in different states and in to erection activities. while configuring the service tax and sales tax i have created single G/L accounts for the service tax and sales tax based on tax code.
Now my client is asking how can check the service tax payable and sales tax payable as per plant basis.
With my config all service tax will go to one G/L account , VAT will go to one account . how can we able check plant wise details.
Suggest me the way
Regards
Satya

Hello
As per my experience, the GL Acc for Service Tax & VAT can't be same. Check with your client.
Anyways, as per your requirement for VAT
1. Maintain 3 Tax code corresponding to your Plant. This will help you in different Tax Code differnet GL Acc
Say,
V1 - Output TaxCode AP
V2 - Output TaxCode KA
V3 - Output TaxCode TN
2. In Tcode OB40 - in Rules activate Tax code. By doing this, it will activate TAX CODE & ACCOUNT in account section.
With you can maintain,
V1 - 3888001
V2 - 3888002
V3 - 3888003
3. Maintain access sequence Country/Plant/PlntRegion/TaxCl1Cust/TaxCl1Mat. in Tax Condition Type.
Then maintain condition record (VK11) for your VAT.
Say,
Country - Plant- PlntRegion - TaxCl1Cust - TaxCl1Mat.
IN - 3010 - AP - 01 - 01 - 4 % - V1
IN - 3020 - KA - 01 - 01 - 4 % - V2
IN - 3030 - TN - 01 - 01 - 4 % - V3
Similarly, you can do for Service tax also.
Thanks & Regards
JP

Service Tax and credit

Hi Experts,
Please Clear my confusion regarding the below points.....
1. Previousy based on the vendor payment we are doing the transfer from interim GL to Target GL account., Now rules have benn changed, we can use based on accrual(Irrespective of payemnt we can use 100% amount), in this case also need to create target GL accounts?
2.Please can u tell me in which trasaction code we mention tthe GL accountS( Which are Target GL accounts, whenever we run the Utilisation T.CODE: J2IUN/J2IU......PLS TELL ME THE PATH OR T.CODE..WHERE WE MENTION GL ACCOUNTS RELATED TO UTILISATION.
Please clear my confusion....
Thanks
Chandu

Hi,
For service tax , check link:
Service tax
AND
For service tax utilization, check link
http://help.sap.com/saphelp_erp60_sp/helpdata/en/09/ebf138cdd78a4be10000000a114084/frameset.htm
Regards,
Biju K

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

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 and Sales Tax-India

In SAP how we can enter both Service Tax and Sales tax in single invoice. Is there is any option to enter both tax code in a single invoice?

Hi
For certain type of Vendor Invoices, both service tax and VAT is applicable in India. This can be done with the help of your tax procedure, where in you calculate service tax on Base Amount and VAT on the BASE AMOUNT plus Excise, if applicable. You need to create a single tax code like that and maintain the suitable condition records. I guess the standard TAX PROCEDURE TAXINN also takes care of this requirement.
Regards
Sanil

Service Tax and Business place configuration..

HI Experts,
I have one confusion, please clear and suggest the below issue..
My client having 3 plants, he wants to collect service tax in diferent GL accounts for plant wise with same tax code.
I think it is possible through business place concept? Please clear it is possible or not?
I have defined business place and assign business place to plant and compay code...what is the next step to follw please breif me about the scenario...
Please suggest.
Chandu

Thank you Vivek....
I am following the below way...
I have created Business place and assigned to company code and plant...
I have created one tax code and not assigned any GL accounts in OB40 AND i have assign GL accounts IN SM30...J_1IT030K_V IN THE combination of Account key, business place and GL.....but i am not getting any GL acounts in OB40 and FTXP in both cases my GL field is null....while posting the transaction system giving the below erro
Transaction key VS7 chart of accts ASHI not defined in table T030K
I have maintained the combination in SM30..it is not sufficeinet or any activation required....Please guide me...
Thanks
Chandu

Purchase Order with Service Tax and Sales Tax both

Dear Sir,
We have a scenario where we have to make a Purchase Order for buying some Software . In the PO , we need to mention Service-Tax as well as Sales-Tax both . Pl guide us as whether it is possible to have such condition available in SAP , if yes then what procedure need to be followed .
As at present , we can not charge Service Tax in the PO against the Material Purchase . Service Tax can be charged only against the Services being purchased .
Pl guide us .
With Thanks and Regards
B Mittal

Hi
If you are talking about a MM pricing procedure create two condition types by copying a standard ( take RAOO and then change the Plus/minus to " Positive" there by u can include this in your PO print as well.
regards
Mahesh

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.

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

How to create a display value and a return value for an item

Hi! I have an item on a form. I want the default value for my item to be :":APP_USER", but the return value, to be the id of my user. I tried to create a PL/SQL Expression for the default item, but it doesn't work. What do I miss?
It should be something like this, but it's not.
begin
select first_name || ',' ||last_name as "Employee",
id_employee -- display value,return value
from employees
where id_employee = :APP_USER;
end;
Does anyone know?
Thanks!
Vitaly

Hi VItaly,
Display value and return value concept applies very well in case of a Combo box if i am correct, I don't know what type of item is your's.
But any way, you can have a workaround like,
Create a hidden item such that it's default value should be ID of the user which can be get from db by using :APP_USER.
Use the this item for your references.
I think this will meet your requirement.
Thanks
Kumaraswamy.

Service tax and cess on freight for inventorised items

Similar Messages

Maybe you are looking for