CIN: How to transfer service tax credit from interim a/c to final a/c.

[Former Member]

Hi,

When a service vendor raises an invoice on our company we post the vendor invoice.At that time the service tax paid goes to the interim service tax a/c.

When we make payment to the vendor the Service tax credit balance is transfered from interim a/c to final service tax a/c. The final service tax a/c is then used for utilization of service tax to be paid for output services.

The transfer of service tax credit from interim a/c to final a/c happens when i run the report S_AC0_52000644(Deferred tax transfer), but from April 2011 this is not happening?

Any idea on why the service tax credit from interim a/c is not getting transferd to final servic tax a/c?

When i run the report it shows list contains no items?

[BijayKumarBarik · Accepted solution]

Hi,

Create target tax code concept which is used to transferred the real tax value from one tax code to anther specified tax code. Create two tax codes(FTXP) namely service tax(S1) & deferred service tax (D1) {where you need to maintain target tax code is S1 in tax code D1) .

Now create PO with tax code D1 & do GR & then do MIRO,you will get get accounting entry for deferred service tax(D1) with other entries and finally do payment to vendor in F-53. But at the time of transfer from deferred service tax (D1) to service tax(S1) , you will get proper entry of transferring amount of service tax by using program RFUMSV50 or t.code:S_AC0_52000644(enter proper date from & to and go for test run and then post ) .

For more check SAP Note:921634

Regards,

Biju K

[sreeharli_tokala]

Dear Sanjay,

I have a few doubts in Service tax.

1. while posting the service tax got Dr and when i'm giving the payment to vendor in the service tax amount no change. you said when you do the payment the service tax amount transfer  from  interim account to  Main a/c. can you give me the solution what i have done mistake and what i need to do till to rectify it?

2. when i'm running program  S_AC0_52000644 system saying for selected company code no deferred tax. what is the problem ?

3. how can i clear the service tax open item witch is posted Dr at the time of invoice? what is the process ?

can you please give me the solutions i have strucked at this stage in service tax. please help to come out from this problem.

Thanks & Regards,

sreehari.

[Former Member]

Yes in that case also you need to create GL to pass on 100 %.

J2IUN is answer to your second question.

[Former Member]

Thanks

[Former Member]

Hi Sanjay or Others.....

Please Clear my confusion regarding the below points.....

1. Previousy based on the vendor payment we are doing the transfer from interim GL to Target GL account., Now rules have benn changed, we can use based on accrual(Irrespective of payemnt we can use 100% amount), in this case also need to create target GL accounts?

2.Please can u tell me in which trasaction code we mention tthe GL accountS( Which are Target GL accounts, whenever we run the Utilisation T.CODE: J2IUN/J2IU......PLS TELL ME THE PATH OR T.CODE..WHERE WE MENTION GL ACCOUNTS RELATED TO UTILISATION.

Please clear my confusion....

Thanks

Chandu

[Former Member]

Hi,

I am using Tax procedure TAXINN. So in TAXINN how is the service tax credit taken?

[pankaj_singh9]

Hi,

Refer SAPNote 921634 - Service tax India - Transfer from Interim to Final Account