New Service tax mapping effective from April 2011

[Former Member]

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

[Former Member · Accepted solution]

Hi Rama,

I checked all the notes released by SAP for budget changes - 2011, no where its mentioned about the slab system.

About the no use of Deferred Tax Program after the budget changes 2011, its mentioned.

please check all the related notes on this from your end also. If you are not able to find any note on this please raise a message to SAP.

Thanks & Regards,

Shashi Kanth.

[Former Member · Accepted solution]

Thank you Shashi,

I will check with SAP for the same

Thanks and Regards,

Ram

[Former Member · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

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.

[Former Member · Accepted solution]

Hi Shashi,

Thank you for the valuable information

Regards,

Ram

[Former Member]

Hi Raghu,

I am facing a similar situation for our client.As you'd be familiar,per Indian service tax laws,the service tax leived for forex puchase is a slab wise calculation.

Accordingly we configured tax codes to compute the same.However,am facing issues in transferring the credit from interim to final GL accounts in the program ZRFMSUV50.

Can you please share what was the final resolution you got with respect to your issue?

Thank you,

Gauravsoni

[Former Member]

HI,

Have you found any solution for this?

Regards

Sreenivas.

[Former Member]

Hi Sreenivas,

We have not found any solution, at present we are posting the manual entry.

Please let us know if you have any inputs

Thanks and Regards,\

Ram