IMport of service -service tax issue

[Former Member]

Hi all,

we have a situation for import of service foreign vendor.....where service tax accounting entry should be like this at the time of MIRO....

vendor a/c cr-100

expense a/c dr-100

service tax rec dr-10%-50

service tax rec dr-2%-5

service tax rec dr-1%-1

service tax pay cr-10%-50

service tax pay cr-10%-5

service tax pay cr-10%-1

Tax procedure used is TAXINN.......

[sanilbhandari]

Hi

This is possible in two ways:

1. You create seperate condition type for Offsetting entry. The recv should have a -ve value only specified in the condition type in your tax procedure and the payable should have a positive value. Then assign a posting key to respective conditions in OBQ3 and assign GL Accounts in OB40. When u use this tax code, it will create the accounting entries as desired.

2. You map this scenario though extended with holding tax. Create a With Holding Tax Type and Code. In the With Holding Tax Code, create the Posting Indicator as "3", which is for offsetting entry. There after assign the GL Accounts under WIT and OFF in FBKP.

Regards

Sanil Bhandari

[Former Member]

Hi

thanks for the reply........

now we are facing another issue in import os foriegn services

while creating the negative conditions for offsetting service tax entries ....two conditions are not giving the negative values

For eg-JSRT-10% +

JEC3-2% +

JES3-1% +

Setoff conditons (negative)

ZSRT-10% -

ZEC3-2%(not coming as negative)

ZES3-1%(not coming as negative)

[sanilbhandari]

Hi

Check the Condition Types. You need to ensure in your tax procedure that, the ECess and Secess should take value from basic Service tax.

Regards

Sanil

[Former Member]

Hi

check my earlier post and follow it's helpful to resolve your issue.

satish

[Former Member]

HI

thank you....i tried the same way what you given in your post

created condiitons with negative sign,mapped in tax procedure(taxinn),created account key,mapped in ob40

in negative conditions fist condition is ok.....second & third(ie Ecess & S&H )value is still not coming as negative

[Former Member]

Hi

Do one thing remove second & third(ie Ecess & S&H ) conditions as negative and keep it in Blank . But caluculation has to be calculated % from Negative Service tax Amount. for Ex like below

001 BASE Amount

100 JSER Ser Tax 001 001

101 JESS Ser Tax Ed Cess 100 100 2%

102 JSES Seconday Ed Cess 100 100 0.01%

Negative Conditions

200 Zser Ser Tax 001

201 ZEss Ser ED Cess 200 200 2%

202 ZSES Secon Ed Cess 200 200 0.01

May be it's works for you.

[Former Member]

Thank you so much .....it worked

[sanilbhandari]

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