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Service Tax

Hi all,

We have two type of service tax payment for services.

1. For example, fro Cab or Taxi, we will pay service tax and taxi fare toghter to Taxi operators. Service Tax benifit will be taken immediateley.

2. For Transporters, Payment will be made Bill value - service tax. Company deduct the service tax and pay the same to govenment. Service tax benifit will be taken later after payment to the governemnt.

Please give some solution in detail for the same with service tax code .

thanks.

Former Member
replied

1. For example, fro Cab or Taxi, we will pay service tax and taxi fare toghter to Taxi operators. Service Tax benifit will be taken immediateley.

Do the transaction FB60 - invoice transaction thro' FI for this kind of services. Here the accounting entries are

Cr : Vendor account 112.36

Dr: Service purchase 100.00

Dr: Service tax acct 12.36

2. For Transporters, Payment will be made Bill value - service tax. Company deduct the service tax and pay the same to govenment. Service tax benifit will be taken later after payment to the governemnt.

You can map this scenario by normal Service purchase process.

a) Create the Tax code for Service tax.

b) Create the Service PO for the transporter service with service tax code.

c) Create the Service entry sheet

d) Do the LIV for Service PO.

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