Work Contract Tax

[Former Member]

Hi Experts,

How is Work Contract Tax is handled in SAP B1 2005B.

Thanks & Regards,

Sandeep

[Former Member · Accepted solution]

Hi,

This is same as combination of Tax code. you have to create service tax and work contract tax codes

and you have to combine..

Regards

Shashi

[Former Member · Accepted solution]

Hi shashi,

Thanks for the reply,

am not sure, but i guess this has to work like TDS.

It should deduct the Value, But by making Tax combination it will increase the value.

please correct me if am wrong

Thanks,

Sandeep

[Former Member · Accepted solution]

Hi,

You r right. But you will raise only to the sales document. i.e for A/R invoice. In that u will be specifying this tax code.

So indirectly u r deducting the tax from ur customer. again which you will be paying to government

Hope u understood. If not let me know

Regards

shashi

[Former Member · Accepted solution]

Hi shashi,

can you please explain me with example from invoice to payments

Regards,

Sandeep

Edited by: Sandeep M on Oct 13, 2008 8:33 AM

[Former Member · Accepted solution]

Hi Sandeep,

1. Create a tax code WCT @ 4% - 40(Tax amount)

2. At the time of entering A/R invoice select WCT taxcode

3. Enter unit price - 1000

System will automatically debit the customer with 1040 As this is similar to output tax it will add to the Customer.

Hope this is clear

Regards

Shashi

[Former Member · Accepted solution]

what about the payments,

do we receive 1040 or 1000 only

Regards,

Sandeep

[Former Member · Accepted solution]

Ya you were right. we will be receiving 1040

for 40 Rs again we have to pass a journal entry

Regards

Shashi

[pankaj_sharma22 · Accepted solution]

sandeep,

Instead try to pass -ve value in the frieght amount.

Regards,

[Former Member · Accepted solution]

Hi Sandeep,

Can you write in detail, what exact functionality you need ?

Like what G/L/ BP entry (Debit / Credit) sholud pass at what level (Transaction) ?

BR

Samir Gandhi