Service Tax-TAXINN

[Former Member]

Hi Friends,

I want to know in which scenario (or) process, service tax comes in SAP-SD?

regards

[Former Member]

Whenever any kind of intangible things or in short service will sell which have monetory value, service tax will be applicable. For example, Installing some machine, repairing of some process, Freight service etc,.

Thanks,

Raja

[Former Member]

Hi Raja,

Thanks for the reply.

So we should have item as a serive item with some X value and we have to charge service tax 10% on X..???

1)If item is a manufacturing product then service tax will come into picture?

2) If it comes then where to map???

3)Freight Service... whether it is in SD-Pricing or in Transporatation??

How to map...

Pls guide me..

with regards

[Former Member]

> So we should have item as a serive item with some X value and we have to charge service tax 10% on X..???

Based on the tax applicable , if the item is service item we have to add that.

> 1)If item is a manufacturing product then service tax will come into picture?

No, Only VAT and cST will come into picture

> 2) If it comes then where to map???

not applicable for manufacturing product.

> 3)Freight Service... whether it is in SD-Pricing or in Transporatation??

Its also kind of service, if you are transporter instead of VAT or CST you have to charge Service tax only.

Simple thing is you have to distinguish what is servie and what is product. In Service , service tax will be applicable and in product VAT and other taxes.

In indian scenario JSRT and JEC3 is used for service tax in TAXINN.

Thanks,

Raja

[Former Member]

Hi,

Can u guide me the configuration procedure for service tax....

I have gone through some threads, but not able to understand for TAXINN.

Whether the (pricing)condition types JSRT and JEC3 should be there in TAXINN condition types..

regards

[Former Member]

Hi,

Please check note 778976, Configuration for Service tax (MM and SD)

Thanks,

Raja

[Former Member]

I have already gone through the notes..

My question is that why we need to maintain the same cond types (JSE4 and JES4)for both TAXINN and SD Pricing Procedure.

with regards

[Former Member]

Hi,

The govt. regulation is you can avail service tax credit against Cenvat only on receiving payment from customers.

You are creating two service tax codes S1 set off account and S2 credit account in FTXP in such a way that

in S1 properties you set the target code as S2. In FTXP for these two condition types you give % only in

target tax code S2 and no % in S1. For the same condition types in pricing procedure, you assign % for

these two condition types in VK11 only for S1 and not for S2. When billing is done, the service tax is calculated

based on VK11 and SD pricing procedure and posted in the set off GL account that has been assigned to the

account key in the pricing procedure. On receiving payment from the customer, we run a program RFUSV00

which will list out all the S1 entries and will post in batch session to Service tax credit account based on S2 code

since we have linked S1 and S2 previously. The service tax credit account is eligible for availing credit.

Regards,

Sadashivan