Exclude service tax from amount

[Former Member]

Dear All,

Please guide how can i exclude service tax from amount like Rs. 1000 is inclusive 12.36% service tax now my client requirement is first we have to reduce 12.36% from base amount and then charge 10.30% on the same . how can we resolve please help

vivek sharma

[ajitsingh6 · Accepted solution]

Dear,

Just need to create a new Tax code as follows,

10.30% on 83.64 % of base amount means 8.61% on base amount and maintain the same in VK11.

Regards

AJIT K SINGH

HAPPY TO HELP U

[Former Member · Accepted solution]

Dear Aji Sir,

if i maintain a condition record for 8.61% then it will reduce 8.61% on base amount but in service tax calculation we have to exclude this like incluse of service tax like 100012/100= service tax, servicetax2/100=higerEdu Cess, servicetax*1/100=eduCess in the same sequence if we exclude the service tax then only we can get the appropriate result.

and also please elaborate your suggestion.

PLease help

[Former Member · Accepted solution]

I understand that u need to reverse calculation of the total amount to obtain the service tax amount. Apply this logic (100*X/110.33) to obtain the service tax amount from the total amount. Ask your ABAPer to write a routine for this in the tcode VOFM. Assign that routine in the Calc type column in Pricing procedure (v/08). By this you can seperate tax amount from revenue amount.

Hope this might help.

regards

Gansub

[rajesh-2]

Hi Vivek,

If you need base amount from price inclusive of service tax:

Only by customization :

Create new condition type with calculation type 'H' (Percentage Inclusive) and add it to your pricing procedure. you will get service tax which is included in the price. Then you can have your own logic for subsequent calculation.

With Routine:

Create new pricing routines to calculate the base amount from inclusive of service tax amount and assign it to relevant condition type.

Regards,

Rajesh

[Former Member]

DearRajesh,

You r right , we can do this to deduct a fixed amount or percentage but in my case the amount is inclusive of service tax means

the amount is Rs. 1000(Inclusive of 10% service tax 2 % Higer EduCess and 1% EduCess) i want to reduce this 1000/- to the original amount where the 10.30% was applicable. so in my opinion i have to right a routine for this calculation but i don't know where and how can i put the routine in pricing procedure for the calculation, Please advice wat should i do .. if more clarrification required please revert the same.

Vivek Sharma

[Lakshmipathi]

1) Create two condition types in V/06 and maintain negative against the field "Pos./Neg" for one condition type and positive for one condition type

2) Maintain Access Sequence for these condition types in V/07

3) Maintain the required percentages against each condition type in VK11

4) Go to V/08, select your pricing procedure and execute. There maintain the negative condition type next to the step number from where the value Rs.1000/- is cumulated. Key in the step number against this condition type as that of Rs.1000/-. Insert another step number and maintain the text net value where you maintain the From-To step number as that of Rs.1000/- and negative condition type. Now your value will be deducted from Rs.1000/-. Again assign another condition type which has positive value next to the step of net value and maintain From-To step number accordingly.

thanks

G. Lakshmipathi

[Former Member]

Dear laxmipati,

You r right , we can do this to deduct a fixed amount or percentage but in my case the amount is inclusive of service tax means

the amount is Rs. 1000(Inclusive of 10% service tax 2 % Higer EduCess and 1% EduCess) i want to reduce this 1000/- to the original amount where the 10.30% was applicable. so in my opinion i have to right a routine for this calculation but i don't know where and how can i put the routine in pricing procedure for the calculation, Please advice wat should i do .. if more clarrification required please revert the same.

Vivek Sharma