System determining CENVABLE TAX along with Service tax

Hi ASAP,
RAW material Bill passing scenarios
Excisable Material is supplied by 1000 party, Transportation support given by 2000 party.As per supply of Excisable raw material, IV for Party 1000 ( Goods/Services) & 2000 ( planned Delivery Cost) will take place.
Step 1.I have created a PO and in Condition Tab freight cost FRC1 Condition type is assigned with party 200. This is to be passing on to 2000 party (transporter).
Step 2. I have done MIGO for Excisable Mat., G/L entry been passed correctly.
Mat:
4003300     RM- normal ore     163,550.47INR
2021000     Provisional Liab-GR/     156,654.40-INR
2223000     Entry Tax payable (R     932.07-     INR
2023000     Freight Prov-inward     5,964.00-     INR
Excise:
4610410     RG 23A-Higher Ed Ces     219.32     INR     V1
4610100     RG 23A-BED     21,931.62     INR     V1
4610400     RG 23A-Ed Cess     438.63     INR     V1
2205000     CENVAT clearing     22,589.57-     INR     V1
Step 3. Now MIRO for Goods/Services for party 1000.
10000020     TATA STEEL LIMITED186,413.73-INR     VI
2021000     Provisional Liab-GR/     156,654.40INR     VI
2205000     CENVAT clearing     21,931.62     INR     VI
2205000     CENVAT clearing     438.63     INR     VI
2205000     CENVAT clearing     219.32     INR     VI
4630100     VAT receivable RM     7,169.76     INR     VI
Step 3. Now when i am try to create MIRO for freight cost where service tax is applicable and given relevant TAX code.
when I am trying to calculate service tax , system is calculating wrong figure and in simulation mode, there I am finding that apart from Service tax G/L determination , system is also determining CENVABLE BED & ECS 14 & 2% Respectively over fright cost 5,964.00.which should not ; It has to determine only Service tax over fright cost 5,964.00 .
2003000 N.N. SINGH & BROTHERS7,553.00-              S7
2023000 Freight Provision-                 5,964.00      S7
4620100 CENVATABLE SERVICE     716.00         S7
4620200 CENVATABLE EDU.CESS 14.00           S7
4620201 CENVATABLE HIGH.EDU. 7.00                     S7
2205000     CENVAT clearing            835.00           S7
2205000     CENVAT clearing           17.00                S7
Note: Tax code S7 is working fine in other cases but here its really surprising me.
plz guide me to resolve this error as earliest as possible,
Ponts will be awarded for relevant Reply
With Worm Regards
Manoj

hi Guru,
this problen has been solved.
Problen was with Tax Condition records.
there is one condition records which is applicable for both tax code i.e. against chapter ID one default tax code is assigned which is applicalble for for Mat as well service item.
1. I have deleted this Tax condition records. and created one tax condition records for material for mat & Vendor specific.
ie. tax requirement for mat and services is being solved.
2. for Mat. MIRO, system is picking up mat& vendor specific and for services MIRO, system is picking up Services specific tax condition records.
Thanks to all gurus.
Points has been assigned for your InPUTs.
Thanks & Regards
MAnoj K Singh

Similar Messages

Monthly Utilization J2IUN with Service Tax

Hi Mentors
I have one query. While doing the monthly utilization with service tax option my balance not tallying with my utilization amount & my ledger account.
Before I did all the utilization with cenvat clearing a/c. why it is not matching my balance
thanks in advance.
Regards
Laxman

Sandeep
My payables like BED & CESS i want to adjust against the service tax. so i no need to maintain balance in service tax account.
if i adjust amount against service tax system not allowing
Laxman

Diference between Service tax and GTA service tax

Hi,
Kindly tell me what is the difference between service tax and GTA service tax and their accounting entries in SAP ?
With Regards,
Samrat

Hi,
Service Tax is charged by the service vendor and you pay the service tax to the vendor along with his payment. Once you pay the service tax, it is the liability of the vendor to pay the service tax amount collected from you to the Government.
GTA is Goods Transport Authority. When you receive any service from any transport vendor, he will not charge service tax from you though it attracts service tax. It is your liability to pay the service tax to Government for the services received from the transport vendor.
In case of normal service tax it is treated as input tax and credit for the same is taken (similar to excise). But, in case of GTA you have to create the liability at the time of receiving the service and make the payment directly to the Government.
Regards
Ramakrishna

Creation of Service Tax code for Service Tax Payable

Hi
Please advise me to create service tax code for service tax payable
Thanks and Best Regards
Shekhar
Edited by: Shekhar Yecham on Sep 16, 2008 8:28 PM

Hi Randeep,
As they said it is service tax GTA.Right we are doing out of SAP, we want it to be done in SAP
The tax calculation will be like below
service tax of 10.3% has to caluclate on the 25% of the Base amount. Like
25% is taxable and 75% is livied.
Base Amount - 100.00
25% of the base amount(100/25) = 25.00
service tax(10.30%) to be calculate on Rs. 25.00
25*10.30% = 2.57
Base amount --> 100.00
Service Tax --> 2.57
Total: 102.57
Regards,
Siva.

Tax code for service tax in shipment Cost document

Hi,
Can someone pls. tell me that do we need to create Tax Codes for Service tax, edu Cess and secondary & higher edu cess for Shipment cost doc?
If yes pls. explain the config in detail.
Regards
Abhilash

Dear Abhilash
Tax codes can be classified into two types, viz. Output Tax and Input Tax.
Output tax can be assigned to all sales related activities whereas, input tax can be assigned to all MM related activities.
To maintain these tax codes, go to <b>FTXP</b> and maintain tax codes for the combination of country and tax code.
Thanks
G. Lakshmipathi

Another tax determination code being picked up along with right tax determination code during creation of BBP

Hi Experts,
There is an issue I am facing while creating BBP, the slices in table DFKKMOP are having another tax determination code being picked up along with the right tax detemination code.
E.g. -> In EK02 for the BBP I have configured tax determination code ZA for main 0051 and sub 0050 for all the company codes, but it is also picking ZX which I have configured for main 100 - sub 202,203 , main - 200 sub 202,203 , main 300- sub 202,203.
Strangely In the table DFKKMOP the tax determination code ZX is coming in the line which has main 0051 and sub 0050.
I dont understand why ZX is being shown in the field BB grouping - Budget Billing: Grouping Key for Tax Determination Code.
I have double checked the customizing in EK02 and I dont find this tax determination code being defined for main 0051/sub 0050, then why is it being picked up for BBP line item in table DFKKMOP.
Any suggestions are appreciated.

Well the issue was during creation of BBP items in DFKKMOP the VAT corresponding to Main/Sub 100/ 3xx was being picked up and when I adapted the tax determination code there. The items was created without any split.
For the second one PA issue, well in this case the tax determination in the standard during the creation of PA invoice via EA27 is happening on the date of execution and not on the selection date or posting date. This is because in SPRO the config. of invoicing <<Define Basic Settings for Invoicing>>
has <<Date type for tax determination in Invoicing for Part. Bills.>> set to <<tax determination in invoicing based on entry date>> that is why it takes the execution date into consideration.So even when we do a posting for SOLLDAT in future to take another tax code it doesnt take that SOLLDAT instead takes todays execution date for which the new tax code is not valid.
To overcome this issue either we need to make the new tax code valid from date in past ie. before the date of execution or we need to change this parameter in customizing <<Define Basic Settings for Invoicing>> to <<tax determination in invoicing based on Posting date>>.
Voilà!

Issues with Service Tax Condition Type.

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.
Kind Regards
Atul Keshav

I dont think the issue is because of some missing IMG configuration but because of some kernel patch updation which is basis related. You may have a look at a Note 1375494 - SAP system does not start after applying SAP kernel patch and consult with your Basis team.
thanks
G. Lakshmipathi

Purchase Order with Service Tax and Sales Tax both

Dear Sir,
We have a scenario where we have to make a Purchase Order for buying some Software . In the PO , we need to mention Service-Tax as well as Sales-Tax both . Pl guide us as whether it is possible to have such condition available in SAP , if yes then what procedure need to be followed .
As at present , we can not charge Service Tax in the PO against the Material Purchase . Service Tax can be charged only against the Services being purchased .
Pl guide us .
With Thanks and Regards
B Mittal

Hi
If you are talking about a MM pricing procedure create two condition types by copying a standard ( take RAOO and then change the Plus/minus to " Positive" there by u can include this in your PO print as well.
regards
Mahesh

Purchase Bill with Service Tax & VAT

Hi Friends,
Here i have received the Purchase bill with both service tax and VAT.
Pls let know how to prepare the PO and MIRO/MIRO.
Here i am giving the break-up for e.g.,
Total Value                  80100.00
Ser Tax 10.3%               8250.30
Total                           88350.30
+ VAT 4%                     3534.01
Round Off                            .31
Total Payable            91884.00
Pls let know how the clear and give me the solutions
Regards,
Lakshman

Hi Laxman,
You can have a seperate condition for service tax with keeping posting key for the tax key & post the PO.
Condition
ZPRI           80100.00
ZSER(10.3%) 8250.30
Total          88350.30
According to vat code defined it will calculate on this value.
Regards
Rang

Tax calculation matter - GL a/c with service tax chargeable

Dear Experts,
I really do not understand why this happen. Any expert can help me? Thank you.
GL posting for C/N issued:-
Car Park reversal         129.03
Service Tax 5%               6.45
Total =                        135.48
<PROBLEM>
Document C/N printed as:-
Car Park reversal                     129.02
Service Tax 5%                           6.45
Total =                                    135.48

Rounding-off rules used in program corrected

Transfer of Service tax / Utilization of Service tax

Dear friends
How to utilize the service tax paid?
I transferred the Service tax from Interim to Final Account.
Now I have to utilize
From which T Code I can utilize the service tax against the Excise duty payable?
Regards
Kiran A

Hello,
Use the transaction code J2IUN. At the bottom of the screen, you have the option to use service tax for Cenvat. Select the radio button and give the final service tax accounts in the fields provided. This will enable you to use the service tax balance against the cenvat payable.
Regards
AKV

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

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

Not able to perform j1iex for service tax capturing

The service PO is similar to that of any other PO in terms of taxing.
In service tax we will have
Service tax          - 12 %
Education cess          - 2 %
Surcharge          - 1%
So for service tax code we will be maintaining three rates in the Tax code.
Follow the below process for Service Cycle :-
1. AC01 - Create Service master in AC01 and assign the Valuation Class for the Service Masters and do Account
                 Determination in OBYC for A/c Key GBB and Valuation Modifier VBR (to this Assign the Service Expense A/c) and
                 for A/c Key WRX, assign GR/IR Clearing A/c
2. ME21N - In PO (ME21N), use Item category as "D" (Services) along with Account Assignment Category "K" (Cost Center)
                    and In "Services" tab, specify the Service Master and pricing details
3. ML81N - Create Service Entry Sheet w.r.t. Service PO
Service Expense A/c - Dr
GR/IR Clearing A/c - Cr
4. MIRO - LIV for Service Entry Sheet or Service PO
Service Vendor A/c - Cr
GR/IR Clearing A/c - Dr
Service Tax A/c - Dr
Ed Cess on Service tax - Dr
Sec Ed Cess on Service tax - Dr
In normal purchase order having excise duty we would perform a t.code j1iex once for capturing excise and again for posting excise duty.
we want same step between step 3 and step 4 for service tax also. can anyone tell us how to achive that.

Hi
We dont have the provision to maintain registers for service tax.
so there is no question of capturing service tax thro J1IEX.
Service tax is posted to a G/L account at the time of MIRO.
We will utilize this service tax input credit at the time of monthly utilization (J2IUN) where in there is option for giving this G/L account.
then the amounts of input service tax will be populated in the screen.
regards
prasad

Acquisition tax in Belgium/Germany-Posting with different tax codes

Dear Friends,
Does anyone have experience working with Acquisition tax in Belgium and German where the goods and services purchased within EU have 21% -input and output tax such that it is ZERO. But still Tax authorities need to see both input and output tax amount with different tax code such as under:
Expense a/c Dr 100
Payable a/c Cr 100
Input VAT a/c Dr 21 - Tax code A1
Output VAT a/c Cr 21 - Tax code B1
Any help as to how to post the above entry and how to customize tax code to get the above result and any changes if required in country code tax calculation procedure will be greatly appreciated.
Thanks,
Pinky

Hi Pinky,
When you define your tax codes, the system defaults certain tax types that have been defined in the system for specific countries. Input tax, output tax, and non-deductible input tax are examples of tax types used in Germany.
The system determines which tax types are to be displayed by means of the country key. A calculation procedure is specified for each country key, and this procedure contains the country-specific specifications for calculating and posting the different tax types.
When you define the calculation procedure, you must answer the following questions concerning each tax type:
What is the base amount for calculating the tax? This can be the expense or revenue amount or, as with sales equalization tax in Belgium, a tax amount.
Which calculation type is used to determine the base amount: percentage included or percentage separate? With very few exceptions (such as for travel expense accounting in Germany), the base amount is normally determined percentage included.
The tax amount is 15%.
Percentage included
Tax amount = invoice gross amount * (tax rate/100 + tax rate)
150 = 1150 * ( 15 / 100 + 15)
Percentage separate
Tax amount = invoice net gross * tax rate/100
150 = 1000 * 15 / 100
To which side of the account must the tax amount be posted? The input and output tax is always posted in accordance with the G/L account and asset line items. For the tax to be posted additionally, the side of the account is determined depending on the input or output tax. For the acquisition and investment tax, for example, you post to the opposite side of the account.
Should a possible tax expense be divided between the G/L account and asset line items or posted separately? If, for example, you have a non-deductible input tax amount, you can choose whether to post to a separate expense account or apportion the tax expense between the G/L account and asset line items.
The type of tax calculation and posting depends on the answers to these questions and the combination of those answers.
The following topics introduce individual tax types and explain the necessary specifications for calculating and posting tax. For more information on the calculation procedure, see The Calculation Procedure.
See also:
Tax on Sales/Purchases: Input and Output Tax
Non-Deductible Input Tax
Deferred Tax: Italy
Sales Tax
Use Tax
Tax Calculation With or Without Jurisdiction Code?
Entering Taxes with Jurisdiction Code
Acquisition Tax
Investment Tax
Sales Equalization Tax
I hope this link will help you
http://help.sap.com/erp2005_ehp_03/helpdata/EN/e5/077e394acd11d182b90000e829fbfe/frameset.htm
Regards
Odaiah

System determining CENVABLE TAX along with Service tax

Similar Messages

Maybe you are looking for