Service tax entries (IMP)

Hi All
The case is such that I have to pay service tax to vendor.If I make part payment then service tax payable to govt.is also proportionate to the value of invoice paid.e.g invoice is of Rs 100 and service tax is Rs 12 on this .if we pay to vendor Rs 50 then proportionately Rs 6 is now payable to govt.
Same is the case when we receive payment from customer.
The setoff is also available.
Plz advise how will this be accounted for...
How will we differentiate how amt we have recd or paid against service tax in case of incomimng and outgoing payment ?

Hi Lucid
The case is such that according to taxation requirements service tax is required to be paid to govt. as and when payment is made or received.
eg we book a vendor invoice of Rs100 and Rs12 is service tax applicable on this so Rs 12 on invoice booking should go to 'service tax payable interim account' which shows Rs 12 is payable as service tax . Now we are making part payment of Rs 40 to the vendor so 40% of service tax shd get calculated automatically and should get transferred from 'service tax payable interim account' to 'service tax final account' i.e paid account.
Same way in case of customer we receive payment inclusive of service tax .
eg we book a bill of Rs 100 plus Rs 12 as service tax now Rs 12 should go to 'service tax receivable interim account' and when we receive a part payment of Rs 40 plus Rs 4.8 as service tax it should get transferred from 'service tax receivable interim account' to 'service tax final account' i.e received automatically.
I hope u will understand it now plz try to answer it will be of great help to me.

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FB60 Service Tax entry Missing

Dear All,
While entry of Vendor Bill thru Tcode FB60, forgot entry of service Tax.
Also Payment made by Cheque for Vendor Bill.
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It is not possible to reverse Payment entry. So it is not possible to reverse Vendor Bill entry also.
WHat is a way out for service tax entry now
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hi
if it is calculating service tax manuaaly
then go to TCode F-02/F-43 then slect post with reference the select the service tax g/l a/c & post the required amount
or
otherwise you can book a JV as mentioned above
regards
Praveen
Edited by: Praveen Chirakkel on Mar 23, 2011 8:08 AM

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

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
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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.
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Service Tax ( RG23A)

Hi,
I have put the service tax entry but it could not hit in the RG23A Register.I think if there is any configuration settings. So please tell me the settings with T.codes. Its very urgent
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R.Manigandan

Check the values that are passed on to the form for displaying the RG23A... it could have been missed out...

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 Pardeshi

Hi 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.

Entries appearing in Service Tax Control Account due to Error in System

Hello Experts,
     I am facing a problem in one particular GL i.e.Service Tax Control a/c
error-Entries appearing in Service Tax Control Account due to Error in System
entries are- Service tax control   a/c   -
Dr. 21,621.86
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My question is when i am making entry as Service tax Dr-21,621.86,Service Tax Cr.21,621.86,so it will adjust,and in FBL3N amt will show 0 but it was showing 21,621.86
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Thanks in Advance

Dear,
What was the balance before you posted the below entry?
Also run FBl3N with correct date parameters..
br,Vivek

Journal Entry for Service Tax Non-Deductible.

Dear Experts,
I have created an A/P Invoice for a Service item with Service Tax Non-Deductible(100%). For that we got the journal entry as below.
Journal Entry
Edu. Cess on Service Tax Payable Dr.                   00
HCess on ST Payable Dr.                                        00
Service Tax Payable (Non-Deductible) Dr.              00
Inbound Freight and Carriage Dr.                       10000
Service Tax Payable (Non-Deductible) Dr.            258
                Vendor A/c                                                     10258.
But my client is asking for the credit figure to be splited to Vendor A/c - 10000 and Service Tax Payable (Non-Deductible) A/c - 258.
He wants the Service Tax amount not to be credited to the Vendor A/c; but to be kept in the Service Tax Payable account.
Is this correct and possible? Please advice.
Regards,
Anandh.
Edited by: anandharajaa on Apr 8, 2011 7:32 AM

Hi
I never seen this kind of scenario....
If your involving any tax in Document then it will Cr. or Dr. to respective vendor or customer and it is the logic too , they have to pay for that... IF they are not payable then will your company pay for that to Govt. It will be lose to company only....
So in Straight the way you need is wrong according to me, May be i don't know your are current scenario might be like this... if it so pls explain further ....
Giridharan V

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

Service tax not include in service entry sheet

Kindly help
In service PO service tax porperly calulated but when we create service entry sheet with reference of PO At the time of service tax not included in amount or in Val tab in service entry sheet.
we want Total value = Net Value + service tax in service entry sheet.
Thanks

My Question is simple Whether it is a Dedctible or non Deductible .
Based on it system will calculate.
Refer to my previous thread.
Biswajit

Service tax deferred tax code entries not updating DEFTAX-ITEM table

Dear Friends,
We are using SAP ECC 6.0. We have configured service tax receivables through deferred tax codes.
Based on the OSS ntoe 921634 we did all the changes & activated this event also.
Event     Product                     Application     Function Module
1025     DEFTAXRU             FI-TAX     CREATE_DEFTAX_ITEM
1030     DEFTAXRU             FI-TAX     SET_DEFTAX_ITEM
1040     DEFTAXRU             FI-TAX     CREATE_DEFTAX_ITEM_REVERS
1050     DEFTAXRU             FI-TAX     CREATE_DEFTAX_ITEM_MR1M
After this changes also the values are not updating the table DEFTAX-ITEM. So while running programme RFUMSV50 - Deferred Tax Transfer (New) the values are not flowing.
Please help me to solve this issue
Thanis
Christopher.J

HI,
Please help us. We are also in the same status. How can we solve this issu?
rajeswari

Error while running service tax program (New)

Hi
I have created S3 as interim tax code and S4 as final tax code. I assigned S4 to S3 as a target tax code. Entries are perfectly flowing.
But when i do service tax program for, session is created properly. When i run it in SM35, for gived error
"Tax code S4 may only contain one assignment line"
I have given routine 166 in OBQ3 for ECess and SHEC.
I tells me to do following procedure:
Use a different tax code.
For direct postings to a tax account, you might have to define a separate tax code for which only one line with a percentage rate other than zero is active in percentage rate maintenance. All other lines must be inactive.
Please help me.
Edited by: Deepak Agrawal on May 4, 2010 1:29 PM

There is one interim service tax code (for normal services) - S1. Final service tax code S2 is created assigned to S1 as target tax code.
Entry passed:
Exp A/c.. Dr                                   500000
Service Tax Basic (deferred)       50000
Service Tax ECS (deferred)         1000
Service Tax SHEC (deferred)       500
   To Vendor A/c                                        551500
For this service tax program (new) is working fine.
For the GTA scenario where service tax is not charged in invoice but we have to pay to government, in that case i have created one interim tax code G1 and i have assigned final tax code S2.
Entry passed for GTA (invoice raised by transporter is Rs. 500000):
Exp A/c.. Dr                                   515000
   To Service Tax Basic (deferred)       50000
   To Service Tax ECS (deferred)         1000
   To Service Tax SHEC (deferred)       500
   To Vendor A/c                                   500000
But when i execute the program i can see three line items (for basic, interim and SHEC)
But when i run the session, it gives error:
Tax code S2 may only contain one assignment line.
I AM UNABLE TO UNDERSTAND, WHY ITS GIVING ERROR FOR GTA SERVICE TAX TRANSFER
Edited by: Meenu_ND on Jun 1, 2010 10:48 AM

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     Assets

HI, 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 Treatment in case of Crebit Note in Deferred Tax Transfer Prog

Dear All,
I have done the Configuration related to the Deferred Tax Transfer Programme and also its working fine. Incase regular case, that booking vendor invoice then make the vendor payment & then transfer the service tax credit from Interim Account to Final account through the Deferred Tax Transfer Programme.
Now my issue is I have two cases
1. I have booked a Vendor Invoice & also make a payment of that invoice to Vendor and also transfer the serice tax through Def Tax Prog and afterwarsd we received a credit note of 50% with Ser Tax
2. I have booked the vendor invoice but not make the vendor payment & I received the credit note for the 50% with Ser Tax
So please suggest me the way for booking this service tax related entries (considering the deferred tax programme ) & how this will transfer through Deferred Tax Programme.
Points will be fully assured for helpfull answer.
Regards,
Sandeep

The problem is solved

Service tax entries (IMP)

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