Serive Tax on Freight.

[Former Member]

Dear Experts,

How do i configure the below sceanrio in SD.

The freight amount is paid to the Forwarding agent (Freight carrier) for goods delivered to the customer. In this case i need to pay service tax on the freight paid amount.

The service tax amount paid is on 25% of the Freight amount. On this amount(service tax) ECS and SHCESS amount needs to be calculated.

Ur valuable inputs are required.

Ramesh

[Lakshmipathi]

Assuming that you maintain a condition type for freight condition in VK11, you also have one more condition type for Service Tax. Assign this condition type in pricing procedure next to freight condition. This means the From-To step number of service tax should be of the freight condition type. Similarly, the relevant step number to be assigned for ECS and SHCess.

thanks

G. Lakshmipathi

[Former Member]

If i configure the settings as suggested the values will be posted to customer's account. Which is not required in the process.

In this scenario the freight amount is paid to the Vendor(freight carrier) and serivce tax is paid on the the freight amount.

In the current process during the vendor payment, externally the service tax values are calulated and manually the values are posted in respective service tax G/L account. I do not want to post manually in the G/L accounts but want to post automatically when billing document is created.

Please advise.

Ramesh