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New Service tax mapping effective from April 2011

HI Experts,

Service tax rule has changed wef from 1st April, 2011 on

foreign exchange related transactions. The Notification No 26/2011

Below given are the slabs for calculating the new service tax

Gross amount of currency exchanged % of

service tax on transaction value

Upto Rs.1,00,000/-

0.1% or Rs.25

whichever is higher

From 1,00,000-10,00,000/-

100 and 0.05% on amount between

1,00,000 & 10,00,000/-

Amount exceeding 10,00,000/-

Rs.550 and 0.01% on amount exceeding

Can any one help for mapping this senario or any body implemented the same

Thanks in Advance

Regards,

Ram

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Former Member
Former Member replied

Hi,

Note 1435105 - Master note for Indian Budget 2010 for Logistics (MM & SD) - this was the master note for impementing the service tax.

But now as service tax regulations have changed we need not configure the old service tax postings i.e postings to interim service tax accounts.

As and when the service is invoiced directly it can be booked to Service Tax Payable/Receivable accounts, previously the postings were made to Service Tax Payable/Receivable Interim Accounts. Later the amounts of the interim accounts were transferred when the invoice is paid.

Note 1571186 - Changes to Service Tax from Indian Union Budget 2011-2012 - please find the latest note on this.

In the above note there is zip file attached which expalins about the changes to be done and about the old postings.

thanks & regards,

shashi kanth.

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