Utilization of Cenvat Credit from Service Tax Payable.

Hi,
Please guide me whether the process i am following is correct or not. And if it is correct, please help with what additional steps i might be required to perform inorder to resolve the issue.
Case: We are a Company where we donot manufacture and sell items. But we do provide services to our customers. Hence we would like to take the Cenvat input credit from the materials that we buy for our requirements and would like to utilize the Service tax that we would have to pay to Government (On our service contracts with customers).
During the process our RG23A Part-I, Part-II, RG23C Part-I, Part-II have been updated properly. Service tax entries for A/P and A/R have been posted successfully. And the next i am trying to do is utilize Service tax credit (AR) with Cenvat credit available from RG23A, and RG23C by using Transaction code: J2iUN.
I am using the option pay Service tax from Cenvat Cr.
Issue:
When i try to simulate after selecting the utilization from Basic excise duty, education cess and higher education cess i am able to see the entry that i require. But when i try to post the entry system is giving the following error message.
Balancing field " Profit center " in line item 001 not filled. Message ID: GLT2201.
The simulated entry is:
Sales tax payable A/c Dr
Education Cess payable A/c Dr
Secondary Higher Education Cess Payable A/c Dr
Cenvat Basic Excise Duty A/c Cr
Cenvat Education Cess A/c Cr
Cenvat Hig Sec Education Cess A/c Cr
Our Company code is active for Document Splitting with Profit center as a mandatory field.
Looking forward.
Thanks and Regards,
Purna.

Dear,
As per your description its look like you have follow standard procedure.
Only thing is that when you do J2IUN, Input Business Area on Selection screen to avoid profit center error.
Let me know if you still getting any error.
Regards,
Rajesh koladiya
Edited by: Rajesh Koladiya on May 7, 2010 5:09 PM

Similar Messages

  • 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.

  • Utilization of Cenvat Credit through J1IH (Plz. Guide)

    Practice followed by co. is to Utilize Cenvat Credit through J1IH T.Code -
    In J1IH, Tab Other Adjustment is used (i.e ETT-MRDY) for this purpose.
    Accounting entry ideally should get  passed through J1IH is -
    ED Payable A/C Dr.
    To RG23A BED A/C
    ED Cess Payable A/C Dr.
    To RG23A Ecess A/C
    Account Determination maintained is proper.
    Inside J1IH, There is a Tab namely Balance where system shows some Balance in RG23A against BED, E.Cess & AT1. Don't know which Balance system is picking up in J1IH Balance Tab because Actual Balance in RG23A Register is much more than the balance shown in J1IH Balance Tab.
    To the extent of Balance available in Balance Tab in J1IH, system is passing the entry correctly as explained above. However for excess amount, system is automatically  replacing the GL A/c as PLA BED A/C as against RG23A BED A/C in Determine GL A/C Screen in J1IH & passing the excess amt. to the credit of PLA BED A/C.
    There is sufficient Balance available in RG3A Register to cover the liability but still system is looking the Balance Tab in J1IH & utilizes the excess amount through PLA BED A/C by giving credit to PLA BED A/C.
    What Settings are required so that sytem should not automatically replace the RG23A BED A/c to PLA BED A/C?
    Need a Guidence in this regard....
    Thanks & Regards...
    Ameya....

    Hi,
    We are also facing same problem 2 weeks back,I found out that not sufficient Balance in RG23A BED account that's why system took Corresponding PLA account,This message is also confirmed from SAP also.
    And aslo maintain Proper Debit and Credit entry of MRDY t.type.
    Raghu

  • Input credit on Service tax after making payment to vendors

    Dear Friends,
    Vendor invoice has been entered with Input service tax and payment has been made to the vendor. After making the payment, it is only clearing the vendor balance and not the input service tax G/L accounts entered on the invoice.
    We tried to implement deferred tax functionality (RFUMSV50 program), but here most of the input tax codes are based on the combination of Service tax with VAT. Hence we couldnt proceed further as deferred tax functionality is not applicable for VAT portion and applicable only for Service Tax here as it is a service based industry. In short, the requirement is Input credit can be taken for Service Tax only after making payment to the vendor.
    Could you please let me know is there any mechanism where we can identify whether vendor invoice has been paid or not from the Input Service Tax GL accounts (either in FBL3N or FAGLL03 tcode). Based on that if the document is cleared, then my client will only take all the cleared documents' input service tax amounts and will set off with the output service tax.
    Regards,
    Dwarak.

    HI,
    Kindly go through the SAP note no.921634 & do the configuration accordingly.
    Regards
    Anuj

  • Service Tax Payable Transfer - Incorrect Amounts

    Dear all
    I am facing the following issue while using S_AC0_52000644 - Tax Reports -> General -> Deferred Tax -> Deferred Tax Transfer (New) for transfer of Service Tax(Output) from Interim to Payable accounts -
    The accounting entry that is generated at the time of Billing document is as below -
    Customer                        110,300.00
    Domestic Sales                          100,000.00-
    Output Service Tax  Interim Basic     10,000.00-
    Output Service Tax ECS Interim     200.00-
    Output Service Tax H & ECS Interim     100.00-
    Hence, ideally the service tax that should be transferred from Interim to Final Payable should be Rs 10000, Rs 200 and Rs 100. However, when i execute the transfer program, the amounts that are getting transferred are not correct, the base amount gets changed. In the present case for e.g for Output Service Tax  Interim Basic, the base amount is displayed as 109,510.22 and the tax amount as 10,142.65.
    We are using TAXINJ and have maintained the 2 tax codes i.e deferred and final. The tax rates are maintained at the tax code level in FTXP and the rates are 10%, 2% and 1%.
    Any help on this issue will be highly appreciated.
    Thanks
    Hrishi

    Hi:
            Please see the OSS  Note 921634 - Service tax India: Transfer from Interim to Final account to rectify the issue. There seems an issue with your routine assignment and activation in VOFM (ask SD Guy). Also check in FTXP if this tax code has more than one line item. If there are then deactivate the one not required.  Another way to avoid this issue is to go to FS00 and in the control tab, select indicator "posting without tax code allowed" ..
    Regards
    Edited by: Atif Farooq on Sep 30, 2011 7:16 PM

  • Service Tax payable on road transportation at Goods receipt lavel

    Hi Experts,
    Scenario--
    Materials receipt from vendors through road transportation thus service tax is applicable and we have to accrue liability and pay to the authorities on behalf of transportor, the cost of transportation has to be booked in separate expense type GL and service tax liability should be created at the time of Goods receipt.
    Please assist me to configure in SAP to comply with the above requirement.
    Regards,
    Kuldeep Dubey

    Hi,
    Plz check if you can bring through condition supplement when the customers fixed @100 rate

  • Cenvat Credit taken based on service tax registration

    Hi Gurus,
    My client is in the service industry ( oil exploration work for ONGC)
    Now when client procure the material, he paid the excise duty and take the CENVAT credit against service tax.They does not maintain the excise register like RG23A & RG23C.
    They required one report for take the cenvat and wants the entries of excise duty into separate GL instead of loaded into material.
    SO CIN setteings are required are not.
    pls suggest me what i do in that case.
    As i think no setting required for excise CIN module cause client does not  registered with Excise and treat excise condition into separate GL as VAT and CST.
    Regards,
    Dinesh

    HI Nukala Padmaja,
    Thanks for your help.
    Could you tell me which service tax gl accounts should be entered there. We usually have 3 gl accounts  i.e.
    1. Service tax
    2. Education Cess on ser. tax
    3. ECS on service tax
    and there are options for 6 GL accounts of service tax:
    3 gl accounts for ser tax account &
    3 gl accounts for ser tax payable
    so i am confused where to entered that gl accounts.
    Awaiting for your valuable suggestion.
    Thanks and Regards,
    Nilesh Joshi.

  • Service Tax program

    Hi
    As per service tax rules, service tax needs to be paid to government only when th amount is received from customer. So at the time of booking invoice, credit must go to service tax interim account and not service tax payable account. Similarly in case of advance, we need to pay service tax once the amount is received even though invoice is not billed to customer.
    Let me know how to handle this.

    Dear
    As per my  understanding,  when an invoice is created the entry is
    Customer A/c Dr  xxxx
    Income A/c     Cr  xxxx
    Service Tax A/c Cr xxxx
    Now you want to assign Service Tax Clearing Account in the above entry.   Upto that stage it is OK.  Then when you receive Service Tax amount from Customer naturally you give credit to Customer Account since billing is already done for service tax and here you cannot give credit to clearing account.   Then by assigning/giving above clearing account does not serve our purpose.
    In my view it is better not to debit Customer at all at the first instance with service tax amount. 
    So when you receive service tax amount, directly you can give credit to Service Tax payable account from where you can pay to the authorities.
    Regards

  • 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 utilization

    I am working in a service industry wherein there is only input excise & no output excise. There is only output service tax(service tax payable)
    When I am utilizing the sr tax against input excise using J2IUN, system doesnu2019t show any value in payable & receivable portion in J2IUN.
    How can I do this utilization?
    Shruti

    Hi,
    The necessary configuration has to be done for utilization of Service Tax against Cenvat.  Kindly take assistance from
    your consultants in this regard.  If you are authorised to make configuration settings as a consultant, kindly revert
    back.
    Regards,
    Sadashivan

  • 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 immediate utilization for excise duty

    Hi everybody,
    I want to utilize the service tax for Cenvat with the scenario of immediate utilization. pls help me in how to configure this.
    Thanks
    Prashant

    hello,
    No special Config is requries. While doing utilisation through J2IUN select radio button Pay cenvat from service tax and also specify the service tax accounts needs to be credit.
    Regards,
    Bhadresh

  • Service tax  Receivable and payable adjustment automatically

    Dear GURU,
    Service Tax Receivable & Payable – The Client wants to have a Service Tax Control Account that would be automatically populated for the particular bill / Invoice on the day of Vendor Payment and Customer Receipt.
    a. Example –
    While Billing Entry - 31.01.2008 (SD)
    Customer A/c 20000
    To Service Tax Payable 500
    To Rental Income A/c 19500
    (Or)
    Service Income
    (Provision Entry only)
    31.01.2008(MM)
    Security Charges 4750
    Service Tax Receivable 250
    To Vendor A/c 4950
    To TDs Payable A/c 50
    (Provision Entry Only)
    On Incoming Payments from Customers (05.03.2008) (FI)
    Bank A/c 19500
    TDs Receivable 500
    To Customer A/c 20000
    (Required Automatically (or) Control) – 05.03.2008
    Service Tax Payable 500
    To Service Tax Control A/c 500
    On Outgoing Payments to Vendors (10.02.2008) (FI)
    Vendor A/C 4950
    To Bank A/c 4950
    (Required Automatically (or) Control) – 10.02.2008
    Service Tax control A/C 250
    To Service Tax Receivable 250
    Please Note: The entries in Red Font are required to be passed automatically
    pls suggest

    Hye
    You can not generate this entry auomatically.  Other option available is Create Tax code for Ex S1 assign  account service tax controll account and create another Tax code Say T1 assign GL Service tax cenvatable ( With Target TAx Code as S1).  You have to maintain the Service tax controll item with open item management.
    On a periodical basis you execute f.38 transfer the Data from S1 to T1 and adjust the eligiblie amount on a periodical basis.

  • Service Tax calculation & utilization

    Hi,
    What is the process of posting input serivce tax in F-02 using tax code S1 maintained in FV11 for service tax.
    But still system is not posting the tax amount.
    Also what is the process of service tax utilization from cenvat or output service tax.
    Is ther any note also for the above cases?
    Thanks
    Suz

    Hi
    Check SAP notes 779512,921634,1392876
    Warm Regrads

  • Last Year available Service Tax Credit not appearing in J2IUN

    While doing CENVAT Utilization thru J2IUN, Last year service tax available Credit balance is not appearing, Only Current year balances are appearing.
    Example: Opening in service tax credit account:      1,50,000.00
            Current year Transactions:            3,00,000.00
                      Total               :      4,50,000.00
    While doing J2IUN Utilization, system is showing available balance as 3,00,000 instead of 4,50,000.
    I am looking forward for your earlier response.
    Thanks in advance.

    Hi,
    Please check the G/L account (FS00) whether it is "Profit & Loss Account" or "Balance sheet account". If it is P&L account, the balances of last year won't be coming. Please check with FICO consultants.
    Regards
    G S Prasad

Maybe you are looking for