can u guide me please on service taxes,education and cess tax

[Former Member]

hello,

In the contract order va41 v r using only the basic price,now the buisness want to have this three taxes,

service tax as 10%,

education cess @ 2%,

S & HE cess @ 1%,

service tax will be calculated on basic price,but education and s & he cess tax has to calculate on service tax,how to do this,please guide me.

[Former Member · Accepted solution]

Hi,

In SD Module

Create 3 Tax condition types

1. JSER = Service tax

2. JCEP= Cess

3. JCES= Sec Edu cess

Assign Account key EXD/MWS for all the three condition types Or if you want you can assign different account keys for each condition type.

Maitain Tax relevancey for Master records in T.Code: OVK3 and OVk4

In FI Module

In the tax procedure T.Code: OBYZ Insert select the procedure which is assigned to country IN and insert output condition types and assign account keys.

In T.Code: FTXP maintian 3 Tax codes each for Service Tax, Cess and Edu cess

on T.Code: OB40 maitain GL codes for each tax code

Discuss with FICO consultant for tax codes

In Vk11 maitain Condition records for each condition type using appropiate tax codes

Process the Transactions.

You can have Tax registers for JSER , JCEP and JCES using T.Code: J1i2

Revert back in case you need any clarifications.

Regards,

Sharan

[former_member266852]

Hi,

Please refere following links for service tax configuration

[https://wiki.sdn.sap.com/wiki/display/ERPLO/ServiceTaxConfigurationinIndia+%28SD%29]

also refer SAP Note 921634 for deferred tax functionality for service tax

Cheers

Shambhu Sarkar

[Former Member]

thanks a lot all are are very help ful answers

[jignesh_mehta3]

Also one more point to note.

Ask client whether they need Posting of Service Tax, Edu Cess & SH Cess in same GL Account or seperate Gl Accounts.

Normally these three amounts are posted to different GL Accounts. Thus for this you will have to create three Accounts Keys and three Tax Codes & assign the same to respective Condition Types in Pricing Procedure. Then maintain GL Accounts determination in OB40.

Hope this helps,

Thanks,

Jignesh Mehta