Transportaion chares and it's service tax

Hi SD Gurus,
My client wants to charge the transportation charges to customers, and on that of 25%, service Tax will be 12%,
What are the condition types for Transportation charges (Freight) and Service Tax? Do I need to create new account keys for them?
My Plant is in EXCISE FREE ZONE.
I am using TAXINN.
Please guide me how exactly my pricing procedure (V/08) should be?
Thanks in advance,
Chaitanya

Hi Chaitanya,
Kindly go through the following link this might be helpful for you.
http://scn.sap.com/docs/DOC-42970
Regards
Bhushan Dhande

Similar Messages

Avail service tax and its Eces,SECESS?

hii all,
Can some body explain me about the service tax scenrio with ecess and secess.
how to avail the service tax ,ecess on service tax and secess on service tax.
Explaination in detailed way is appreciable.
thanks

Service tax
Background: As per legal requirement, service tax credit can be only availed on the payment to the vendor either full or partial payment.
In the case of sales, service tax is liable to pay to government only on the receipt of sales proceeds for services.
The Approach adopted here is that while booking the liability, Service tax amount will be kept in a u201Ctransit u201Caccount (e.g. service tax on hold Account). Periodically a program will be run which will transfer the Amount from: u201Con Holdu201D account to Service Tax Receivable Account.
Mapping of above scenario in the SAP environment using following SAP Notes
921634 Service tax India: Transfer from Interim to Final Account
For ERP 6.0 use additional notes 1073292, 1073447 & 1076653.
Support Pack level: 10
Please check that notes 785561 and 817486 are implemented in your system or an appropriate SP is installed.
u will get the details in SAP note 921634
and for credit
when u do J2IUN
on the first screen down u will have to put
service tax final gl account
ecess of final st gl account
hecess on ST final Gl account
hope this helps

Cenvat Utilization and Service Tax

Dear Gurus,
Below mentioned points is comes under Which module (FI/MM/SD)??
1.) Cenvat Utilization
2.) Service tax utilization and maintainance of Service Tax Register
Please provide the Honest Inputs.
Thanks & Regards
Nitin Chhabra

Hi,
In many of the organisations, finance & accounts departments handles this activities. The entries for CENVAT and Service tax generates from all the three modules. Monthly Utilization, updating the RG registers and statutory tax returns are solely
handled in accounts department.
Regards,
Sadashivan

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

How to determine Service Tax in sales order

Dear Guru's
What all the configuration setting that are required for determine the Service Tax in the sales order for service Item we are using Tax procedure for India u2013 TAXINN.
Regards,
Bhanu

Following SAP Notes to be referred for Service Tax:
1. 778976 u2013 Service Tax and Ecess on Service Tax
2. 1032265 - SEcess on Service Tax
Regards
AK

Service tax condition types in Pricing Procedure in SD(Taxinn)

I need one more advice on Service tax.
I am configuring order type for services.In that in pricing I have to add the service tax conditions type for service tax & cess on that.We do not have any standard condition type in our pricing procedure for services.
Is there any standard SAP doc. to configure service tax condition types in pricing procedure or I have to copy from JLST & JLSR(surcharge).What about the account keys I will used for these condition types.
If you have any doc. related to this issue please send it to me....or suggest me what to do.
Please remeber I am using TaxINN tax procedure.
Please help me
Thanks & Regards
Sunil Garg

PROCEDURE: Initial Steps
Create two new Tax conditions: JSE4, JES4. Steps for creation of Tax Condition is illustrated below
Create new condition types
SAP Standard IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check Calculation Procedure. (Transaction OBYZ)
Select Define Condition Types
Select Condition Type JIN1 and Click on Copy as (F6) and give the Condition type as JSE4 and the Name as Service Tax.
Select Condition Type JIN5 and Click on Copy as (F6) and give the Condition type as JES4 and the Name as ECS on Service Tax.
Outcome: The two tax conditions, one for Service Tax and the second for Education Cess on Service Tax have now been created.
1. Create a new tax posting key VS9 and VS0.
The path for this is:
SPRO  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Check and Change Settings for Tax Processing
Select the Processing Key MW1 and Click on Copy as (F6) and give the Key as VS9 and Name as India Service Tax.
Select the Processing Key MW1 and Click on Copy as (F6) and give the Key as VS0 and Name as ECS on Service Tax.
Note: If there are multiple service tax registration numbers, you need to have separate account posting to different GL accounts based on service registration number. This can be done provided a separate tax code is maintained for each service registration number.
To achieve this you need to define a set of 2 separate G/L accounts for service tax and Education CESS on service tax respectively, for every service registration number.
In such a case, please activate multiple accounts posting per tax code as follows:
Defining the GL accounts for the Service tax and ECS on Service Tax:
SPRO  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Posting -> Define Tax accounts
Go to Details of the Transaction VS9 (Service Tax GL account) and enter the Chart of accounts
Select the Tax Code Check Box if you want to have Tax Code Specific GL accounts or Blank when the common GL accounts
Regards,
Rajesh Banka
Reward points if helpful.

Condition types for service tax

Hi,
We are configuring the system for TAXINN.
Which condition types to be usd for service tax, ECess on service tax and HECess on service tax?
are their any standard condition types for it or we need to create those?
Regards,

Hi,
For Deductible;
JSRT     IN:A/P Service Tax %
JEC3     IN: A/P ECS for ST %
JES3     IN:A/P SECess on ST
For Non-deductible; (Copy of Above with A/c Key "NVV")
ZSRT     IN:A/P Service Tax %
ZEC3     IN: A/P ECS for ST %
ZES3     IN:A/P SECess on ST

Service tax entries (IMP)

Hi All
The case is such that I have to pay service tax to vendor.If I make part payment then service tax payable to govt.is also proportionate to the value of invoice paid.e.g invoice is of Rs 100 and service tax is Rs 12 on this .if we pay to vendor Rs 50 then proportionately Rs 6 is now payable to govt.
Same is the case when we receive payment from customer.
The setoff is also available.
Plz advise how will this be accounted for...
How will we differentiate how amt we have recd or paid against service tax in case of incomimng and outgoing payment ?

Hi Lucid
The case is such that according to taxation requirements service tax is required to be paid to govt. as and when payment is made or received.
eg we book a vendor invoice of Rs100 and Rs12 is service tax applicable on this so Rs 12 on invoice booking should go to 'service tax payable interim account' which shows Rs 12 is payable as service tax . Now we are making part payment of Rs 40 to the vendor so 40% of service tax shd get calculated automatically and should get transferred from 'service tax payable interim account' to 'service tax final account' i.e paid account.
Same way in case of customer we receive payment inclusive of service tax .
eg we book a bill of Rs 100 plus Rs 12 as service tax now Rs 12 should go to 'service tax receivable interim account' and when we receive a part payment of Rs 40 plus Rs 4.8 as service tax it should get transferred from 'service tax receivable interim account' to 'service tax final account' i.e received automatically.
I hope u will understand it now plz try to answer it will be of great help to me.

Service Tax GTA

Hi
I have created the EWT Tax Types and Codes for Service Tax for GTA and maintain formulae also for the same. Now the vendors subjected to GTA are also subject to TDS. for us, service tax is an expense, so the accouning entry happens as:
Service Tax Expense Dr
To service Tax Payable
Now we can get the liability of Service Tax but how do we get the value of invoices on which this service tax has been deducted. The J1INMIS does not show With Holding Tax Base Amount and is no longer supported by SAP. In Vendor Line Item Report, FBL1N for all the vendors, I cannot see the figure for abetement, as system, would show the With Holding Tax Base Amount and With Holding Tax Amount inclusive of TDS.
Regards
Sanil Bhandari

Hi
We can get the information via a work around:
1. In J1INMIS, we get the document Numbers for which service tax for GTA is applicable. In the initial screen, we have given the Official With Holding Key for Service Tax on GTA and Business Place as a Creiterion.
2. We down load the dump into excel from the system.
3. Then we copy the Document Numbers into FBL3N under dynamic selection and exclude the GL Account for Creditor control account, service tax expense account and service tax payable.
4. When the report is executed, system shows the value of Stock GL and expenses for which service tax for GTA is applicable.
5. The Total figures for all the invoices is thus obtained and can be used to obtain the value for service tax returns prepared outside the system
Regards
Sanil Bhandari

Service tax configuration

HI
How to configuration service tax in the arline industry.Because in the arline no any excise duty is there.when i m trying to run the service tax report this i have geeting the error depot is not maintain. i know in excixe group plant is not assign.
how can slove this problme. Tell me the service tax configuration.Because i need to submit report in the service tax department.
i m new in the airline industry
Thanks

Hello,
I donot Know exactly the Airline industry buiness , but SAP has recently released the below given Notes for Service tax configuration.
For Service tax determination SAP has released 6 Notes.Implement these below given Notes and try for Service tax .
1353362 Service tax Master Note.
1391485 Outbound Excise Invoice enhancement for service tax.
1393506 Service tax enhancement for ARE reversal process.
1392593 Service Tax enhancement in monthly Utilization.
1393534 Service Category determination and service tax return (STS).
1393460 Updation of GAR7 Challan information.
Service Tax reporting needs to be done based on service category in section 3 of ST3 report.
And the congiuration Zip doc folder is available in above given Note.
Regards,
Mahesh Naik.

Service tax cenvatable

hi,
my requirement is to make the service tax for foreign vendor is cenvatable as for thelegal changes .. so can any one say the procedure how to make the service take as cenvatable and what is the cysle to follow..
to be clear..briefly..
say serv charge is 100 usd.
serv tax is 14 usd
total vendor account 114 usd
but i want this tax amount 14 usd to be utilized for cenvat not to be credited for the vendor,,
regards,
Manu.

Dear Manu,
J2iun is the month end activity.
it is T-code for monthly utilisation of the cenvat credit available against the excise payable.
u have to do this activity before 5th of every month.
In J2iun T-code u can use Service tax paid for taking setoff against Excise duty payable.
to user service tax paid
First u hav to get find the paid sevice tax to vendors.
Then make JV of that amount from service tax clearing account to service tax paid account.
and use that service tax paid account in the Screen of J2iun.
where u can easily find the place where to put service tax account.
regards,
sujit

Service tax MM

Hi Team,
There are 2 places we can see service taxes.
1.In FI - TAXINN we can config these service conditions.
2.EXTERNAL SERVICE MANAGEMENT - Service conditions.
Can any one explain when to use which and why ?

Service tax is not specific for the FI & MM ,service tax is the tax leived on a specific service which we have procured for the manufactering or non manufacturing process. For manufacturing process service procured we will get the benefit on the particular service tax , only after the bill is paid to the vendor or service provider.
If service is captured through service PO than MM is involved all the procudure of Service PO, Service entry sheet & Invoice verification , Payment to vendor , service tax utilization .
If service is for GTA than directly JV can be passed in FI.
If required more specification, give me your excat dought in service tax.
Regards
Iqbal

Service tax base

Dear Experts,
There is a requirement to configure service tax on the basis of the product net value. Due to some billing requirements, the service tax would be created as materials and the service tax condition types will be triggered against this material.
Now my quetion how do i pick the net value of the product as the base for calculation and triggering of service tax.
Best Regards,
Kumar

I had similar requirement as in this thread, wherein had to calculate different line item based on different material and tax.
user exit for SD pricing procedure determination
You can maintain the different Tax conditions in VK11 based on the Materials (Standard Material ,Service material..etc)
For that you create Condition table with the field Material then put that condition table in to access sequence then assign that access sequence to the Price condition type then maintain the price with that key combination your rquirement.
Thanks
Aman

Service tax-SD

Hi friends,
    Service tax condition type jser is not availiable in taxinn and taxinj and how jser condition type will come in the sd pricing procedure.
    Education cess condition type is availiable but we have to apply any note.
waiting for reply
Regards.
kishore

You may have to do Service tax configuration.
Basic Configuration for service tax is as under:
OBJECTIVE
This document will detail the configuration required on the SD side to enable computation of Service tax and Education Cess in the output Service order.
PROCEDURE: Initial Steps
Create two new Tax conditions: JSE4, JES4. Steps for creation of Tax Condition is illustrated below
Create new condition types
SAP Standard IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check Calculation Procedure. (Transaction OBYZ)
Select Define Condition Types
Select Condition Type JIN1 and Click on Copy as (F6) and give the Condition type as JSE4 and the Name as Service Tax.
Select Condition Type JIN5 and Click on Copy as (F6) and give the Condition type as JES4 and the Name as ECS on Service Tax.
Outcome: The two tax conditions, one for Service Tax and the second for Education Cess on Service Tax have now been created.
1.     Create a new tax posting key VS9 and VS0.
The path for this is:
SPRO  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Check and Change Settings for Tax Processing
Select the Processing Key MW1 and Click on Copy as (F6) and give the Key as VS9 and Name as India Service Tax.
Select the Processing Key MW1 and Click on Copy as (F6) and give the Key as VS0 and Name as ECS on Service Tax.
Note: If there are multiple service tax registration numbers, you need to have separate account posting to different GL accounts based on service registration number. This can be done provided a separate tax code is maintained for each service registration number.
To achieve this you need to define a set of 2 separate G/L accounts for service tax and Education CESS on service tax respectively, for every service registration number.
In such a case, please activate multiple accounts posting per tax code as follows:
Defining the GL accounts for the Service tax and ECS on Service Tax:
SPRO  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Posting -> Define Tax accounts
Go to Details of the Transaction VS9 (Service Tax GL account) and enter the Chart of accounts
Select the Tax Code Check Box if you want to have Tax Code Specific GL accounts or Blank when the common GL accounts
Click on Posting Keys
Enter the 40 as Debit and 50 as Credit.
Click on Accounts.
Enter the GL codes If you have tax code specific GL then enter the tax and GL account.
After completing select the VS0 and do the same steps for ECS on Service tax.
A separate account for every tax code can be maintained as follows:
Now maintain different account based on the tax code. Since the tax code will be specific for a plant you can achieve posting to specific account for a plant. This should be maintained after configuring the tax procedure.
Steps are: -
     You have to define the required tax codes.
     Create separate G/L accounts.
     While creating the posting key, please follow the customizing settings given below:
SPROFinancial AccountingFinancial Accounting Global SettingTax on Sales/PurchaseBasic SettingCheck Calculation Procedure
Define Procedures:
Select TAXINJ and click on control data. The screen will look like as shown below.
Click on New Entries and add the following two entries in your system
Step 270 and 280 the Condition type JSE4 and JES4 respectively. The from step for JSE4 is 100 and 270 for the condition JES4. You have to assign the accounting key
VS9 for JSE4 and VS0 for JES4.
After adding the new condition types the procedure will look like as shown below
Changes to Tax Code:
SPROFinancial AccountingFinancial Accounting Global SettingTax on Sales/PurchaseCalculation  Define Tax Codes for Sales and Purchases.
Country: IN
Enter the Tax code and Tax jurisdiction Code (If it is applicable in your system).
Enter the 10% for the Condition type JSE4 and 2% for JES4. (Please note that in the screen below have condition type ZSER in place of JSE4 and ZSTE in place of JES4.)
Changes to Pricing Procedure:
INGSales and DistributionBasic FunctionsPricingPricing ControlDefine Condition Types.
Select Condition Type JIN1 and Click on Copy as (F6) and give the Condition type as JSER and the Name as Service Tax.
Select Condition Type JIN5 and Click on Copy as (F6) and give the Condition type as JSTE and the Name as ECS on Service Tax.
INGSales and DistributionBasic FunctionsPricingPricing ControlDefine and Assign Pricing ProcedureMaintain Pricing Procedures (V/08)
Regards,
Rajesh Banka
Reward points if helpful.

COMPOSITION OF VAT & SERVICE TAX

Dear Gurus,
I am facing a problem, in one of my both 4% VAT and 10.3% Service Tax is applicable.
My Base Value is 165000 INR
Vat 4% is calculated on base value ie 165000
but in case of service tax the 33% of base value will be considered for calculation .
ie 33% of 165000
kindly guide me how to do it .
Thanks in advance
With warm regards
Soumen

Hi there,
Go and change the condition records for the service tax for the appropriate key combination.
Let me give you an clue, you can mantain the condition record for service tax to be calculated on percentage basis and accordingly in the values for the condition type you can mantain 0.33%, or do the back calculation and mantain the percentage.
Regards
Sujoy

Transportaion chares and it's service tax

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