Service tax on freight

Hi Experts,
We have shipment document and cost calculation in place for inbound material.
Now we have one requirement that at the time of GR the following entry should be posted;
Inventory Dr
GR/IR Cr
Freight Clg Cr
Service tax on Freight Cr-particular GL
Now the freight cost is coming from shipment document and FI posting is getting done at the time of GR.
How this service tax part can be taken care of by loading to inevtory and crediting a GL also calculated upon a freight value.
How pricing procedure in shipment document and purchasing can be linked
Regards

Hi
The service tax will be captured to seperate g/l account at the time of invoice posting. if u want to inventorize than do it through debit entries.
if u want in the pricing procedure than create one more condition type and give the from and to that of the frieght condition so that i will calculate from the frieght value and assign an account key and the account key will determine the g/l account.
hope this will help u.
Regards
Santosh Kumar

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Scenario - Service Tax on Freight

Hi All,
How I can map below scenario -
Basic Price - 1000.00
VAT 4 % - 40.00 - Tax code
Freight - 100.00 - Condition Type
Service Tax on Freight - 25.00 - Not to be inventoried on Material
PO Value - 1165.00
Currently we are not adding service tax component in PO. How to add the same.
If I go Through condition type, service tax will get inventoried on material.
Please suggest.
Regards,
Rakesh

Hello,
Basic Price - 1000.00
VAT 4 % - 40.00 - Tax code
Freight - 100.00 - Condition Type
Service Tax on Freight - 25.00 - Not to be inventoried on Material
PO Value - 1165.00
Create One account key and acrrual for condition "Service Tax on Freight" and assign that one Pricing procedure. then system will not inventorised that value.
If Basic Value of the PO is --1000 .
VAT 4% on Basic price means --40INR (is it invenotrised?)
Freight ---100 INR
Service tax on Freight--25
Then Sytem will show at the time of GR(accounting entries)
BSX----1165+
WRX---1000-
Fright--100+
Freight--100-
Service on Freight---25+
Service on Freight---25-
Regards
Mahesh Naik

Service Tax on Freight & Excise duty on Service

Hi.
In Sales Order From Factory,
1)The Service tax on Freight is paid by customer. ie. one condition type exist that is Service tax on Freight,
Since it is service tax, it should hit RG23A part1
2)Also "Education cess" and "Higher Education Cess" are applicable on service tax paid.
we cant enter Education cess"(JECS) and "Higher Education Cess"(JA1X) twice in Sales Order. one to calculatate on Basic and one to calculate on Service tax.
also if i create 2 diff. condition type JECS and JEC1 , JA1X and JA1Y, how to configure that in CIN "Specify G/L Accounts per Excise Transaction" which supports only one conditon type.
Reg,
Amol

Hi Amol,
Unlike excise duty, service tax cannot be mentioned in Specify G/L Accounts per Excise transacion as the excise invoice are created for excise duties billing document
Also service tax will not be displayed in RG23A1 i believe it will be only for goods, correct me if i am wrong
Thanks,
Ramesh

Service Tax on Freight & Excise duty on Service tax

Hi.
In Sales Order From Factory,
1)The Service tax on Freight is paid by customer. ie. one condition type exist that is Service tax on Freight,
Since it is service tax, it should hit RG23A part1
2)Also "Education cess" and "Higher Education Cess" are applicable on service tax paid.
we cant enter Education cess"(JECS) and "Higher Education Cess"(JA1X) twice in Sales Order. one to calculatate on Basic and one to calculate on Service tax.
also if i create 2 diff. condition type JECS and JEC1 , JA1X and JA1Y, how to configure that in CIN "Specify G/L Accounts per Excise Transaction" which supports only one conditon type.
Reg,
Amol

Hi
You can copy and create new condition types and use them for calculating Ecess and Shcess for service tax.
sap sd cin config
Kiran

Calculating Service Tax on Freight Charge

Dear All,
           My client procures a material on which it pays freight charges to freight vendor .And service tax is calculated on freight only .Immediate payment is done to the freight vendor .And service tax is paid on freight .
           What I have achieved until now is I am able to get condition type for freight and I am able to assign vendor number is that condition type detail .
           But how I will calculate service tax on freight . In my view service tax should be fetched from tax procedure . In tax procedure service tax is calculating the value from gross price BASB .
           And BASB is fetched through routine 362 .
           Please anybody let me know how I will overcome the situation .
Regards
Abhijit Das

Hi
Go to transaction code FTXP and select the country for which you need to create a tax code. This country is automatically linked to the Tax Procedure which has been set up in the menu path [IMG - Financial accounting - Financial accounting global settings - tax on sales/purchases - basic settings - Assign country to calculation procedure.
Enter in the field tax code. This must be a 2-digit alphanumeric code like S1
Tax percentage can be maintained in two ways & that depends upon the Tax procedure that has been followed i.e. if tax procedure is formula based then percentage can be maintained in FTXP only, where as if the procedure is condition based then percentage has to be maintained under the identified condition type.
Once done GL accounts has to be assigned under OB40 for automatic posting of tax amounts.
Its better if you can get it configured by FI consultant
Edited by: Basab Bose on Mar 2, 2009 9:29 AM

Service Tax on Frieght Charges in Shipment Cost Document

Hi All,
I got a requirement like calculation of service tax on freight charges in transportation.I want to know the process how to achieve this,condition records need to maintain only in TK11 or in FV11 also.By doing search in SDN i came to know that this will come in with holding tax scenario.
Other than with holding tax scenario there is any other way to achieve this requirement.Please let me know the possibilities.
Regards
Sunil

I just checked this and I am getting tax amount in tax field. I don't know whether you were asking for this but this is what I got.
Meanwhile please go through this link as well.
How to close a discussion and why
Thank$

Calculate Sales Tax on Freight Condition

Hi All,
We have an issue where we need to calculate an additional amount of Sales Tax on the Freight Condition which is entered on the Delivery Document as a manual condition and not on the sales order itself.
I am unable to configure the system so that the Sales Tax amount calculated for the whole invoice is inclusive of the Freight amount too
Is there any suggestions as to how I could do this?
Thank you for you support
Rukshana

1. Calculation of sales tax on basic+ ED+ freight charges.
2. Calculation procedure as basic+ Freight + ED+ sales.
excise and tax is for a value addition to a product . so excise , tax is on basic value only.
IF you want it for freight taxes u need to do transportation cost ther u can maintain service tax for freight vendors.
me21n, vl31n,vt01n,vi01

Service Tax on Planned Delivery cost

Hi
i don't know how to claculate on service tax on freight , if any body hve how do the process.

Hi
While creating GR DCGR ( Freight GR) is automatically created by system . While doing MIRO aginst this DCGR input service tax at line item in MIRO

Sales tax on freight

Dear pandits,
I have two scenarios,
1. Calculation of sales tax on basic+ ED+ freight charges.
2. Calculation procedure as basic+ Freight + ED+ sales.
Need
There are companies who levy sales tax on freight as freight being part of material movement.
Also, there are manufacturing units imposing Ed on basic + Freight , being the freight charges part of material cost and the structure becomes basic+ freight + ED+ sales .
Please help will SAP support this schema and the methodology too
thanks
B Vignesh

1. Calculation of sales tax on basic+ ED+ freight charges.
2. Calculation procedure as basic+ Freight + ED+ sales.
excise and tax is for a value addition to a product . so excise , tax is on basic value only.
IF you want it for freight taxes u need to do transportation cost ther u can maintain service tax for freight vendors.
me21n, vl31n,vt01n,vi01

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

Import PO freight Service Tax

Hi,
In import PO for domestic freight condition type i select the freight vendor. But for MIRO when i selct the tax code for Service tax I need two base amounts one one for calculating tax and other not relevant.Please tell me how to amend the tax procedure or pricing for accomodating two base amounts BSAB.

Hi Tej,
You r right, but tell me in Freight LIV. how can i specify or demarcate which value is for service tax calcualtion. suppose i mention 1000 inr freight in PO freight condition for a freight vendor. At miro when i select tax code it is applied to total value. But requirement is to apply tax say 10% on say 700 only. How do we tackle this. Please guide.

Freight service tax

Even if the condition type relating to freight service tax is not in the pricing procedure, it keeps coming whenever sales order is created. Does it have anything related to tax code?

Dear Debmalya
Yes if the said condition type is maintained in Pricing Procedure PR0000 and this PR0000 should have been assigned to your PR00 in V/06, then the supplement condition will flow in sale order.
thanks
G. Lakshmipathi

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 value required updating while posting GR in MIGO transaction

Dear Friends,
We have a following scenario where service tax value required updating while posting Goods Receipt MIGO transaction.
1. Purchase Order created for first line item where Qty. 1 and Net Rate Rs.1000/- so total Gross value will be Rs.1000/- example Vendor XYZ
2. Freight condition type maintained for the first line item for Rs.500/- and assigned to Transportation vendor ABC.
3. When Goods Receipt Posted for the Material against PO first line item, the material value updates Rs.1500/- (Material value as
    per PO + Freight Charges)
4. After posting GR while making Invoice verification through MIRO transaction against the PO GR/IR clearance will be done for
    Material vendor XYZ. For transportation Vendor ABC Planned delivery cost indicator will be select and since service tax is
    applicable Service tax code will also select.
Here the values of Service tax if the Material available in Stock it will be inventories. If stock consumed before making the Invoice verification for Transportation vendor ABC, then the Service tax values update to PRD account.
We know that in PO, tax code can be select for first line item (Raw Material) Vendor XYZ and if transportation charge condition type maintained for same first line item and assigned to Vendor ABC and there is no provision to maintain Service tax. So the service tax will get inventories while posting Invoice Verification for the transportation vendor.
We want the values of Service tax to update while posting Goods Receipt in MIGO transaction.
Thanks & regards
Dhanu

hi,
Please note at the time of MIGO Servecie tax value does not appear, it will appear at the tiem of Invoice only.
Regards,
Rama Mohan Bangaru

GOODS TRANSPORT SERVICE TAX

Hi
the scenario is
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.
here the mapping is to be done in sucha a way that postings must be as follows
x G/L freight clearing A/C - Dr
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
b G/L SHcess input     ( 1% on 2%)                     Dr
c G/L Service tax Payable ( 12% on 25% of Frieght) Cr
d G/L Ecess tax Payable ( 2%on 12 %)                    Cr
e G/L SHcess Payable     ( 1% on 2%)                     Cr
I had defined a Tax code with JSTX, JEC5 amd JEC 6
I had assigned the Accont keys VST, VS6, VS7 in the tax proceedure, and G/L accounts Input for each act key in ob40
but how to map the G/L acts payable
i tried to enter the payable amount MIRO, but for the client this is a lengthy way
i have one other way in OB40 ,go to rules iam seeing the debit/credit flag is locked , if iam able to check the flag for debit/credit, i may abl to assign the debit and credit G/L accounts.
If any one had gone through the same config
Hope some one might have mapped this business process.
please help me out how to do it.
krishna

thnx

Service tax on freight

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