Service tax on Import

Hi All,
We have purchased an imported raw material which is Excisable. The Clearing Agent has charged some thing for clearing on which service tax is applied.
Now, I have to Inventories the raw material purchased along with service charges by clearing agent?
Please help me?
Regards,
Abhishek
Edited by: Abhishek A on Oct 31, 2008 6:01 AM
Edited by: Abhishek A on Oct 31, 2008 6:49 AM
Edited by: Abhishek A on Nov 6, 2008 10:37 AM
Edited by: Abhishek A on Nov 12, 2008 11:17 AM

Hi Abi
you have to make the JE for the clearing expenses along with service tax. The clearing expenses along with tax amount will goes to landed cost calculation for item cost determination.
regards
asupathy

Similar Messages

Clearing agent service tax in import po

Hi,
How to map Customs clearing agent service tax in import po?
for ex:
clearing agent service charge - Rs.2000
service tax 10% - Rs.200
E CESS 2% on ST - Rs.4
SHE CESS 1% on ST - Rs.2
Kindly give your suggestions
Regards,
Ramesh Kumar. V

Few questions,
1. will this agent service charge is going to inventorised or get added to your material value
2. which business scenario of import has service charge attached to it?
3. Service tax->whom will you pay this tax to the material vendor or your service agent vendor? I think it would be the service agent.
If the service agent charges are not going to add to your material then you will have to create a service PO line item seperate from the the material PO line item. Thereafter you can map this scenario as normal define service agent charges as delivery charges in service PO line item 2 and mainatin a Tax code in the system for service tax using FTXP and maintain the condition record for the same in FV11 (if TAXINN) or mainatin the tax % value in tax code FTXP (for TAXINJ).
BR

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

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.

Miro service tax amount is calculating wrongly for particular materials for import PO

Dear All,
I have created import PO with three vendors like foreign vendor, customs duty vendor & Clearing Agent vendor.
After creating PO with all conditions the PO is posted and MIGO is done.
While doing MIRO there is no problem for foreign vendor and customs duty vendor (there is no service tax applicable for both)
While doing MIRO for Clearing agent vendor, we have to calculate service tax for 12.36 %.
The service tax is properly maintained in the system and its calculating correctly for all other PO's except this PO.
This particular PO has 32 materials.the values are flowing correctly from PO to MIRO but while calculating service tax the tax value is higher than the exact value.
When we do MIRO for same clearing agent with different material the service tax is calculating correctly. But if we use particular materials with same clearing agent vendor the tax amount is not calculating correctly
For example:
for Item 10
The value is 1062.72 & 12.36 to be calculated on this value.
The actual tax value is 131.35 but in MIRO its showing as 171.90. The same problem is happening with all other 31 materials.
The Info record is not maintained for all the materials. On what basis should we check for the above issue. Kindly help with your valuable inputs.
Kindly refer the screenshot.
Thanks & Regards
Subbu

Hi Ajith,
Please find the screenshot below
But for same vendor with different material in another PO the tax is calculating correctly
9050* 12.36 = 1118. 58
For this the tax is exactly calculating as 1118.58
Regards
Subbu.

IMport of service -service tax issue

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
expense a/c dr-100
service tax rec dr-10%-50
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
Tax procedure used is TAXINN.......

Hi
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
200 Zser Ser Tax                     001
201 ZEss Ser ED Cess             200   200     2%
202 ZSES   Secon Ed Cess       200 200      0.01
May be it's works for you.

Service Tax Calculation for Condition Types

Dear Experts,
In an Import Purchase Order for Coal, along with the Basic Price of the Coal, the following Conditions are also entered, in the Condition Types maintained in the Import Pricing Schema
-        Water front royalty
-          Port Dues
-          Berth Hire Charges
-          Port terminal charges
-          Surveyor charges
Each of these conditions may have a separate Vendor, hence the Purchase Order creator will select each condition and assign the required vendor.
Each of these conditions is subject to Service Tax, Educational Cess and Higher Secondary Educational Cess, the User want that separate service tax calculation be made available in the pricing schema for these individual conditions and the relevant vendor be assigned to these condition. the service tax on individual conditions be paid to the relevant vendor along with the basic value for the condition.
Separate Condition Types (15 nos.) for each of the above conditions for Service Tax, Educational Cess and Higher Secondary Educational Cess can be prepared and added in the pricing schema, the user will have to enter the percentages in the relevant conditions.
The user wants that the Service Tax be automatically calculated for these conditions, instead of manually entering the same. Please guide how can this be achieved.
Thanks in advance.
AJ

Hi,
For this you have to maintain the all your charges in your pricing procedure along with each charge you have to maintain 3 condition types for service and chesses.
Ex:
step counter cond.type des.                   from                 to
1 1 P000 Gross Price
1 2 P001 Gross Price
25 0 JM00 Water front royalty                 1
26 0 ser1 service                                  25
27 0 edu1 educationcess                      26
28 0 edu2 se.edu.cess ;                        26
29 0 jm01 Port Dues                                1
30 0 ser1 service                                   29
31 0 edu1 educationcess                       30
32 0 edu2 se.edu.cess                           30
like this you have to built your pricing procedure in a m/08. after that for you want the service tax automatically so for that you have to put the accesses sequence in you service condition types (ser, edu1,edu2).in m/06.
After that you have to maintain info record for that material and import vendor. in me11 in that in condition tab you have to maintain percentage for ser, edu1, edu2 . the system will calculate the service charges automatically.
Thanking you,

Changing the base price for service tax calculation

Hi
i have and PO order with basic price say for 100 /- on which it is calcuating service tax 12% , e-cess 2% hcess--1 .This is coming thru tax code from the tax procedure and these taxes service/ecess /Hecess is to be posted to sepearte G/L account.This is working fine.
Now my requirement is that i want to calculate service tax on some % of the base price say 70 % of the base price. The % will always be changing .i want to calculate service tax on the 70/- not on 100.
i want that system should post this 100 /- to cost of service but the tax should be on whatever percentage i make .Here this is 12.36 % on 70 not on 100 at the time of invoice posting.
please guide me
regards

Hi,
For this you have to maintain the all your charges in your pricing procedure along with each charge you have to maintain 3 condition types for service and chesses.
Ex:
step counter cond.type des.                   from                 to
1 1 P000 Gross Price
1 2 P001 Gross Price
25 0 JM00 Water front royalty                 1
26 0 ser1 service                                  25
27 0 edu1 educationcess                      26
28 0 edu2 se.edu.cess ;                        26
29 0 jm01 Port Dues                                1
30 0 ser1 service                                   29
31 0 edu1 educationcess                       30
32 0 edu2 se.edu.cess                           30
like this you have to built your pricing procedure in a m/08. after that for you want the service tax automatically so for that you have to put the accesses sequence in you service condition types (ser, edu1,edu2).in m/06.
After that you have to maintain info record for that material and import vendor. in me11 in that in condition tab you have to maintain percentage for ser, edu1, edu2 . the system will calculate the service charges automatically.
Thanking you,

I want to post service tax gl (liability) in KZ document type

Dear all,
I want to post service tax gl (liability) in KZ document type .in my customization document aplitting is active.it has not allow to post liability gl against bank.I want to post entry
                            Vendor dr
                             bank charges dr
                             service tax    dr
                                     to bank
and amount should adjust aginst bill also .at that time exchange diff should hit
please tell me the solution

If the form is going to be used on an iPad, Numbers is the only game in town.
Numbers is available for Macs only (and iOS devices). Excel is available for PCs and Macs. If you are in a mixed environment of Windows PCs and Macs and you are using this document as an electronic form, Excel is probably the better choice. Otherwise you will need to export to Excel for the PC users then import from Excel to retrieve their data. The import/export process is not perfect. A file that has been exported then reimported will not be the same as the original file. I would assume social services agencies are almost entirely PC-based.
If the form is to be printed or turned into a PDF for distribution and use by the social services agencies, either Excel or Numbers would do the job but right now Excel might be the better choice. I would have recommended Numbers '09 but I cannot recommend Numbers 3 for anything thsat requires printing until they give us the layout and printing functionality we used to have (editing in Print View, ability to set margins, etc).
If everything else in your department/operation/agency is Windows PC and Microsoft Office based, you would be better off sticking with the standard.
I hope that helps.

Service Tax Recievable Opening Balance

Dear All,
How to update the Opening Balances for Service Tax recievables so that it appears in the Tax Payment Wizard also. As in the normal system when a the payment is made for an invoice with Service Tax the tax amount on the paid sum gets to reflect in the tax payment wizard for Service Tax, Cess on Service Tax and Higher Edu Cess on Service Tax. Now, when I am switching from my legacy system, how do I update the service tax recievable account balance in SAP so that I can also see that in the Tax payment wizard?
Please suggest.
Regards,
Raj

HI Raj,
If you are using DTW to import BP invoice details, use the tax code those are created in the system in the templates to achieve your requirement.
Thanks,
Joseph

Service tax Hadling

Dear all
I want complete CIN cycle for service tax which will cover following
1. Service PO with tax code for service line item level ( what config required for the same )
2. what is Importance of the tax code in service entry sheet
3.CENVAT Creadit handling for service tax
4.Service tax report based on Service Number or service group in (FBL3N) &
5.What are other report avaiable for services & service Tax
in Addition to above we are also having one plant which is not register for excise but we are having
service tax registration for the same what will be the setting in CIN for that Plant & what about excise
group for the same plant
Please explane this also
Thanks

Hi
Service tax
Use SAP standard Service Tax condition as "JSRT" or "JSER" and copy these conditions as "JEC3" (A/P ECS for ST) and "JSEC" (A/P SECess for ST). Use OBQ1 to createcondition tpes.Mainbtain Access Sequence as "MWST" for the condition types.
And for the conditions maintain
Cond. class D Taxes
Calculation type A Percentage
Cond. category D Tax
And then assign it in tax Procedure Taxinn in OBQ3 with the account keys for the same..
Use OBCN to create account keys.
Assign g/l accounts in OB40 for the A/c Keys
And then create Tax Code in FTXP for Service Tax.
Enter tx code in PO
During MIRO accountign will be
Vendor A/c - Cr
GR/IR Clearing - Dr
Service Tax A/c - Dr
Ed Cess on ST A/c - Dr
Sec. Ed Cess on ST A/c - Dr
And then utilize the Service Tax Values by specifying these GL Accounts in selection screen of J2IUN
Under u201CCross utilization b/w Service tax and CENVATu201D Tab
u2022 Service tax credit account -
u2022 ECESS on ser tax account -
u2022 SECess on ser tax account -
And utilize the CENVAT from Service Tax Accounts.
Also chk Check help.sap.com for more help
Reg
Raja

Service Tax category

Dear Experts
In SAP B1 when we select service tax code how can we select a particular service tax category like Telephone and pager,security agency,Insurance auxilliary service,technical inspection.this is important for service tax return.
regards
Manoj

Hi Manoj
Go to Administration => Setup => Financial => Tax => Tax Code Determination you can assign the category whatever you want.
Regards
Balaji

Interest on customer item excluding service tax

Hi,
When i run customer interest calculation(FINT) system calculates interest on invoice + service tax amount but i want to calculate interest on only invoice amount excluding service tax.
Request immediate help.
Thanks in advance.

Hello Pranav,
Select radio button as Net amount instead of gross amount in mentioned customization.
SPRO > Financial accouting New > Withholding tax > Extended withholdign tax > Calcualtion > Withholding tax type > Define withholding tax type for invoice. Double click on relavent TDS type & change gross as net and check impact,which we are using since notification annouced by Income tax department.
Regards
Mani Kumar

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.

Asset PO with Installation charges and service tax?

Hi Sap guru's,
I searched for this topic but could not find answer. I want to create a Asset PO which had Installation charges (with Service tax). Now I want to incorporate the installation charges with its service tax to the asset account. I tries many ways but could not find the solution. Please, help me <removed by moderator>
Thanks,
Karteek.
Message was edited by: Jürgen L

Hi,
You needs two tax codes!
You PO contains 2 line items, so create 1st line item with a tax code(S1) of 5% non-credit tax and 2nd line item with another tax code(S2) of 12.36% non-credit service tax.
Both tax code S1 and S2 should have created with service tax condition with different tax percentage 5% and 13.62 % respectively where the same service tax condition type should assigned to NVV key in your tax procedure.
Regards,
Biju K

Service tax on Import

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