Service tax issue

Question

Hi,
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-
2 40 170113 Exp Freight unplannd 1,000.00
3 50 111106 TDS Payable - Prof 113.00-
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
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
3 40 104501 Service Tax Credit 111.00
4 50 111106 TDS Payable - Prof 113.00-
Now the service tax Rs 111/- Should be calculated automatically by the system. what changes I have to made. please suggest me. Advance thanks.
Jay

Answer 1

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
3 40 104501 Service Tax Credit 111.00
4 50 111106 TDS Payable - Prof 113.00-
If it is possible in way u suggested, plz explain briefly how to proceed.
Regards
Jay