Service tax cenvatable
hi,
my requirement is to make the service tax for foreign vendor is cenvatable as for thelegal changes .. so can any one say the procedure how to make the service take as cenvatable and what is the cysle to follow..
to be clear..briefly..
say serv charge is 100 usd.
serv tax is 14 usd
total vendor account 114 usd
but i want this tax amount 14 usd to be utilized for cenvat not to be credited for the vendor,,
regards,
Manu.
Dear Manu,
J2iun is the month end activity.
it is T-code for monthly utilisation of the cenvat credit available against the excise payable.
u have to do this activity before 5th of every month.
In J2iun T-code u can use Service tax paid for taking setoff against Excise duty payable.
to user service tax paid
First u hav to get find the paid sevice tax to vendors.
Then make JV of that amount from service tax clearing account to service tax paid account.
and use that service tax paid account in the Screen of J2iun.
where u can easily find the place where to put service tax account.
regards,
sujit
Similar Messages
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Service tax Receivable and payable adjustment automatically
Dear GURU,
Service Tax Receivable & Payable The Client wants to have a Service Tax Control Account that would be automatically populated for the particular bill / Invoice on the day of Vendor Payment and Customer Receipt.
a. Example
While Billing Entry - 31.01.2008 (SD)
Customer A/c 20000
To Service Tax Payable 500
To Rental Income A/c 19500
(Or)
Service Income
(Provision Entry only)
31.01.2008(MM)
Security Charges 4750
Service Tax Receivable 250
To Vendor A/c 4950
To TDs Payable A/c 50
(Provision Entry Only)
On Incoming Payments from Customers (05.03.2008) (FI)
Bank A/c 19500
TDs Receivable 500
To Customer A/c 20000
(Required Automatically (or) Control) 05.03.2008
Service Tax Payable 500
To Service Tax Control A/c 500
On Outgoing Payments to Vendors (10.02.2008) (FI)
Vendor A/C 4950
To Bank A/c 4950
(Required Automatically (or) Control) 10.02.2008
Service Tax control A/C 250
To Service Tax Receivable 250
Please Note: The entries in Red Font are required to be passed automatically
pls suggestHye
You can not generate this entry auomatically. Other option available is Create Tax code for Ex S1 assign account service tax controll account and create another Tax code Say T1 assign GL Service tax cenvatable ( With Target TAx Code as S1). You have to maintain the Service tax controll item with open item management.
On a periodical basis you execute f.38 transfer the Data from S1 to T1 and adjust the eligiblie amount on a periodical basis. -
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,
DineshHI 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. -
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 -
Cenvat Utilization and Service Tax
Dear Gurus,
Below mentioned points is comes under Which module (FI/MM/SD)??
1.) Cenvat Utilization
2.) Service tax utilization and maintainance of Service Tax Register
Please provide the Honest Inputs.
Thanks & Regards
Nitin ChhabraHi,
In many of the organisations, finance & accounts departments handles this activities. The entries for CENVAT and Service tax generates from all the three modules. Monthly Utilization, updating the RG registers and statutory tax returns are solely
handled in accounts department.
Regards,
Sadashivan -
Accounting entry against Excise invoice not created for Service Tax sales
Dear all,
I am facing one problem related to accounting entry against excise invoice not created, for service tax sales scenario in SEZ plant.
Accounting entry against billing document is generated,which contains revenue account-Debit entry,service tax 10% --Debit entry,ECS-Service tax 2% --Debit entry, SECess Service Tax 1% --Debit entry & Sundry Debtors (Reco) - Domestic(Customer receivable reconciallation) account-Credit entry.
But after generating excise invoice, accouning entries not generated for clearing of Cenvat suspense entry(i.e.service tax 10% ,ECS-Service tax 2% , SECess Service Tax 1%) which is generated during billing document.
Plz. suggest step by step guideline to resolve this issue.
Thanks & Regards,
Mukesh PardeshiHi ReazuddinMD,
thanks for your reply and support...I checked all the entries/accounts maintained correct.. but the Accounting entrys against Excise invoice not created..
Now i am geeting error as below at the time of saving Excise invoice,
No account is specified in item 0000000001
Message no. F5670
Diagnosis
No account was specified for account type "S" in item "0000000001" of the FI/CO document.
System Response
The Financial Accounting program cannot process the document.
Procedure
A system error has probably occurred in the application you called up. Check the data transferred to item "0000000001" of the FI/CO document. -
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 calculation & utilization
Hi,
What is the process of posting input serivce tax in F-02 using tax code S1 maintained in FV11 for service tax.
But still system is not posting the tax amount.
Also what is the process of service tax utilization from cenvat or output service tax.
Is ther any note also for the above cases?
Thanks
SuzHi
Check SAP notes 779512,921634,1392876
Warm Regrads -
I am working in a service industry wherein there is only input excise & no output excise. There is only output service tax(service tax payable)
When I am utilizing the sr tax against input excise using J2IUN, system doesnu2019t show any value in payable & receivable portion in J2IUN.
How can I do this utilization?
ShrutiHi,
The necessary configuration has to be done for utilization of Service Tax against Cenvat. Kindly take assistance from
your consultants in this regard. If you are authorised to make configuration settings as a consultant, kindly revert
back.
Regards,
Sadashivan -
Hi,
I made the PO for services as follows:
<b>Base amount (PB00) = Rs 100 ( value of service)
Service Tax @ 12 % = Rs 12 ( cenvatable)
Education Cess 2% = Rs 0.24 ( CENVATABLE)
Secondary Edu Cess @ 1 % = Rs 0.12 ( CENAVATABLE)
Total Value of PO = Rs 112. 36
For Rs 12.26 cenvat credit is taken.</b>
I am using <b><u>copy of TAXINJ</u></b> procedure. What are the condition types I should use for :
<b>1) service TAX
2) Edu. Cess
3) Secondary Education Cess.</b>
JEC1, JEC2, JA1S and JA1I is already used in my procedure ZTAINJ, for the purchase activities for raw material, capital goods, spares etc,
Please give solution
with regards
PratapDear Friend,
Thanks for your help.
could you please help on following also;
1) the Functionality of condition types
<b>JSER
JSVD
JSV2</b>
in my case which one to use? any sap note on this explaining the use?
2) the following conditions are not appearing in my system:
<b>JSRT
JVCS
JVRD
JVRN</b>
What is the functionality of these?
Are these related to MM or SD.if i have to create which one to copy? any sap note on this?
please suggest any study material or consulting note where I can find the application help.
my email is : [email protected]
WIth regards
Pratap -
Transfer of Service tax / Utilization of Service tax
Dear friends
How to utilize the service tax paid?
I transferred the Service tax from Interim to Final Account.
Now I have to utilize
From which T Code I can utilize the service tax against the Excise duty payable?
Regards
Kiran AHello,
Use the transaction code J2IUN. At the bottom of the screen, you have the option to use service tax for Cenvat. Select the radio button and give the final service tax accounts in the fields provided. This will enable you to use the service tax balance against the cenvat payable.
Regards
AKV -
System determining CENVABLE TAX along with Service tax
Hi ASAP,
RAW material Bill passing scenarios
Excisable Material is supplied by 1000 party, Transportation support given by 2000 party.As per supply of Excisable raw material, IV for Party 1000 ( Goods/Services) & 2000 ( planned Delivery Cost) will take place.
Step 1.I have created a PO and in Condition Tab freight cost FRC1 Condition type is assigned with party 200. This is to be passing on to 2000 party (transporter).
Step 2. I have done MIGO for Excisable Mat., G/L entry been passed correctly.
Mat:
4003300 RM- normal ore 163,550.47INR
2021000 Provisional Liab-GR/ 156,654.40-INR
2223000 Entry Tax payable (R 932.07- INR
2023000 Freight Prov-inward 5,964.00- INR
Excise:
4610410 RG 23A-Higher Ed Ces 219.32 INR V1
4610100 RG 23A-BED 21,931.62 INR V1
4610400 RG 23A-Ed Cess 438.63 INR V1
2205000 CENVAT clearing 22,589.57- INR V1
Step 3. Now MIRO for Goods/Services for party 1000.
10000020 TATA STEEL LIMITED186,413.73-INR VI
2021000 Provisional Liab-GR/ 156,654.40INR VI
2205000 CENVAT clearing 21,931.62 INR VI
2205000 CENVAT clearing 438.63 INR VI
2205000 CENVAT clearing 219.32 INR VI
4630100 VAT receivable RM 7,169.76 INR VI
Step 3. Now when i am try to create MIRO for freight cost where service tax is applicable and given relevant TAX code.
when I am trying to calculate service tax , system is calculating wrong figure and in simulation mode, there I am finding that apart from Service tax G/L determination , system is also determining CENVABLE BED & ECS 14 & 2% Respectively over fright cost 5,964.00.which should not ; It has to determine only Service tax over fright cost 5,964.00 .
2003000 N.N. SINGH & BROTHERS7,553.00- S7
2023000 Freight Provision- 5,964.00 S7
4620100 CENVATABLE SERVICE 716.00 S7
4620200 CENVATABLE EDU.CESS 14.00 S7
4620201 CENVATABLE HIGH.EDU. 7.00 S7
2205000 CENVAT clearing 835.00 S7
2205000 CENVAT clearing 17.00 S7
Note: Tax code S7 is working fine in other cases but here its really surprising me.
plz guide me to resolve this error as earliest as possible,
Ponts will be awarded for relevant Reply
With Worm Regards
Manojhi Guru,
this problen has been solved.
Problen was with Tax Condition records.
there is one condition records which is applicable for both tax code i.e. against chapter ID one default tax code is assigned which is applicalble for for Mat as well service item.
1. I have deleted this Tax condition records. and created one tax condition records for material for mat & Vendor specific.
ie. tax requirement for mat and services is being solved.
2. for Mat. MIRO, system is picking up mat& vendor specific and for services MIRO, system is picking up Services specific tax condition records.
Thanks to all gurus.
Points has been assigned for your InPUTs.
Thanks & Regards
MAnoj K Singh -
Hi
We are not using Tax codes for Service tax as we dont have the scenario CENVAT credit set off. We have assigned WHT codes in vendor master for TDS deduction only. In that case is it possible to post FI entries through FB60 without considering TDS on service tax value.
For Example
The vendor submitted bill for 112360 i.e. 100000 plus 12.36% service tax. I need the entry should be as follows
Expenditure 112360
Vendor 102360
TDS 10000
Please suggest how to get this entry without manual intervention. And the J1INQEFILE also should show correct percentage (10%) and values.
Regards
PrakashHi,
Please create the withholding tax type and select radio button Net amount and assigned the same to new withholding tax created.
Regards,
Tejas -
Monthly Utilization J2IUN with Service Tax
Hi Mentors
I have one query. While doing the monthly utilization with service tax option my balance not tallying with my utilization amount & my ledger account.
Before I did all the utilization with cenvat clearing a/c. why it is not matching my balance
thanks in advance.
Regards
LaxmanSandeep
My payables like BED & CESS i want to adjust against the service tax. so i no need to maintain balance in service tax account.
if i adjust amount against service tax system not allowing
Laxman -
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
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