Service Tax Issue on Transportation

In INDIA when we receive the invoice from transporters we have to calculate the service tax on the 25% of the invoice amount and the TDS as per the rates applicable entry should automatically be like this when we will use the service tax code eg
Invoice amount is 25000
Vendor Cr rs 22167
Transportation charges Dr 25000
TDS payable basic       Cr 2500
Surcharge                    Cr 250
ECS                            Cr 55
HECS                          Cr 28
Service tax                   Dr 643 (p&l a/c)
Service tax`payable       Cr 643(B/Sheet a/c)
Now the issue is when i use the tax code in SAP it posts a different transcation like
Vendor Cr rs 22167
Transportation charges Dr 24357
TDS payable basic       Cr 2500
Surcharge                    Cr 250
ECS                            Cr 55
HECS                          Cr 28
Service tax provision     Dr 643
Please let me know where i am doing wrong
Please revert
Sunil Kumar

Dear ,
this are the steps for calculating Service tax for Transportation (GTA)
Create new entries with GTA as the Official withholding tax key name
Create withholding tax type using the path
Create withholding tax code using the path
Note: when u create tax code u should select '3' for posting indicater under postings
Assign the withholding tax type to the company code using the path
Maintain G/L accounts for the debit entries using the path
if u have any quarry please get back tome......
Regards
radha

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See the note: 921634.
Service tax processing is given in the note.
Award points if useful.
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We have a requirement related with Service Tax Code , related with Transport Vendor where in Clinet wanst the Service Tax as 10.3% on 40% of the Invoice.
For example: say the Invoice Value is Rs. 100. The Client want Service Tax 10.3% on Rs 40 i.e. Rs. 4.12
Pls. guide.
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Hi Pramod,
you have to create a new condition type which will be the copy of any discount condition type.
then you have to modify the taxinn. here you have to call this condition type before service tax condition type. the base for the new condition is the base value.
now you will have to maintain the condition record for the your new condition as 40%
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My client is posting some vendor invoices through FB60. When they are posting in FB60, TDS is getting calculated automatically for that particular vendor. Entry is showing like this
Itm PK Account Account short text Assignment Tx Amount
1 31 201009 Intertek Testing Ser 887.00-
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Now the problem is service tax. Service tax is 12.36%. Invoice amount 1000 include service tax also. Now they are posting service tax manually. The entry should be like this
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Dear amit,
My issue is service tax should be calculated on expense account and that amount should be debited along with expense account. Vendor account and TDS accounts should be credited. If I assign the new tax type to vendor master this amont also will be credited. I want the entry should be like this
Itm PK Account Account short text Assignment Tx Amount
1 31 201009 Intertek Testing Ser 887.00-
2 40 170113 Exp Freight unplannd 889.00
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4 50 111106 TDS Payable - Prof 113.00-
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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 .
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create the new service tax code with required percentage and use the same .

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Hi all,
we have a situation for import of service foreign vendor.....where service tax accounting entry should be like this at the time of MIRO....
vendor a/c cr-100
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service tax rec dr-2%-5
service tax rec dr-1%-1
service tax pay cr-10%-50
service tax pay cr-10%-5
service tax pay cr-10%-1
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Do one thing remove second & third(ie Ecess & S&H ) conditions as negative and keep it in Blank . But caluculation has to be calculated % from Negative Service tax Amount. for Ex like below
001 BASE Amount
100 JSER Ser Tax                       001     001
101 JESS Ser Tax Ed Cess         100    100       2%
102 JSES Seconday Ed Cess     100    100      0.01%
Negative Conditions
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Hi
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http://www.requisite.com/solutions/index.cfm?pageID=productpac_bugseye
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http://help.sap.com/saphelp_srm50/helpdata/en/0a/f9353e39011a38e10000000a114084/frameset.htm
http://help.sap.com/saphelp_srm50/helpdata/en/ba/7a50415e216e24e10000000a155106/frameset.htm
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As per Notification No. 35/2004, in relation to the transport services, the onus of collection and payment of service tax has come to the recipient of the services unlike the provider of the services in other cases. Hence organizations are required to collect and deposit the tax with the govt. authority on behalf of the transporters.
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y G/L Freight vendor A/C - Cr
z G/L Service tax input ( 12% on 25% of Frieght) Dr
a G/L Ecess tax input ( 2%on 12 %)                    Dr
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d G/L Ecess tax Payable ( 2%on 12 %)                    Cr
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Scenario--
Materials receipt from vendors through road transportation thus service tax is applicable and we have to accrue liability and pay to the authorities on behalf of transportor, the cost of transportation has to be booked in separate expense type GL and service tax liability should be created at the time of Goods receipt.
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Hi All,
Where in IMG do you define Region. When I am trying to create a condition record for the Condition Type ZSRT Service Tax under the access sequence, Country Plant Region Material.the system throws the following error SDC SAP System Message Workprocess restarted session terminated. Please advise what needs to be done.
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I want to confirm one thing that Service Tax % will be calculated on Material or not during PO???
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For this you have to create the service tax code in ftxp . and maintain the relavent percentages in fv11
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step                                  Cond.type        DISCRIPTION                from
100          BASB     Base Amount                                         362
110               Calculated Call     100
120               Sub total
250          JSER     IN: Service tax     100                                                                                ESA
260          JSVD     IN:Service tax%     100                                                                                             ESE
265          JEC3     Inp SrvTxEces%     260                                                                                             VS8
266          JSE1     Inp SrvTxS.H.Eces%     260                                                                                                 JI5
270          JSV2     Inp SrvTx w/o Cr     120                                                                                                NVV
275          JEC4     Inp SrvTxEces w/o Cr     270
276          JSE2     Inp SrvTxSEces w/oCr     270                                                                                                NVV
280               Total SrvTx     260     276
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RFUMSV50(Deferred Tax Transfer "new"), test run, i'm getting all the tax line items, but when i'm going for batch input session only few line items are coming.
What is process of Transfer service tax data from output interim to final.
Please explain what are the procedure for service tax transfer and what parameter should be selected while running RFUMSV50.
Please Help,
Thanks .
Maurya Shantanu
9763922284

The process flow of service tax is as under:-
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1) FB60
                                 Sales Expense A/c Dr 5000
                                 Deferred Tax A/c Dr 500
                                              To Account PayableA/c cr   5500
2)F110
                                 Account Payable A/c Dr 5500
                                            To Bank A/c    cr       5500
3)SE38 --> RFUMSV50
                                   Input Tax(V1) A/c Dr 500
                                              To Deferred Tax(D1) Cr 500
Cofiguration Procedure as under:-
1)   Check Routine Number.(VOFM)
2)   Check Function Modules.(FIBF/BF31)
3)   Active Country Version India for Specific Fiscal Years.
4)   Define Procedures.
5)   Define Tax Codes for Sales and Purchases Note: Create another
       Tax Code SA as copy of tax code DA
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6)    Define Deferred Tax Rules.
7)    Assign Deferred Tax Rules to Company Codes.
Thanks & Regards,
Maurya Shantanu

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?
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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

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Hi suman,
This forum area is for issues or questions relating to the "SAPGui". This is not the correct area to post your question.
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