Service tax condition record

[Former Member]

Hi,

In RRB, service tax is changed from 10.3% to 12.36%. I have maintained the condition record for 12.36%. My Issue is, when I raise the sales document from the contract, I input the service rendered date as Jan 01/14/2012 (previous year), but the billing date is 04/09/2012 (fiscal year). Now, the service tax is calculated as 10.3% as the service renedered date is 01/14/2012.It should read 12.36% as the document is billed 04/09/2012. Kindly provide me the options.

Thanks, Deepak

[jignesh_mehta3 · Accepted solution]

Hello Deepak,

Go to T-Code V/06 & select the Service Tax Condition Type.

Here under Control Data 2 you have option for Pricing Date. currently if would be blank. You need to maintain C - Billing date (KOMK-FKDAT) there.

This will make sure that your Service Tax Condition Record (12.36) is picked based on Billing Date.

Hope this helps,

Thanks,

Jignesh Mehta

[Former Member · Accepted solution]

Thank you Jignesh

[Former Member]

Hi Deepak,

This situation arises many a times in practical scenario, where order is created prior to the changes in Tax and invoice is raised afterwards.

Specify G (Copy pricing elements unchanged and redetermine taxes) in Pricing Type in VTFL item data.

Here system will search for the condition record of your service tax condition type at the time of billing and will take 12.36 % in invoice...

Hope it helps.

Regards,

AKN

[jignesh_mehta3]

Hello Ashish,

Even if you specify G (re-determine Taxes) in copy controls, system will just re-determine the Taxes based on the service rendered date.

Now, in this case the Service Rendered date is 04.01.2012 (when the Tax was 10%) but the Billing date is 04.04.2012 when the Tax is 12%. Now, in system both the Condition Records are currently existing (10% till 31.03.2012 & 12% from 04.04.2012). Thus even if you redetermine Taxes at Invoice level, system will still pick 10% based on Service Rendered Date.

That is why I have suggested the setting in the Service Tax Condition Record to change the Pricing date to Invoice Date.

Hope this clarifies,

Thanks,

Jignesh Mehta

[Former Member]

Hi Jignesh,

I had the same issue like Deepak for 1 of my client and did the same change as I mentioned above & it worked. But yes I learnt a new thing... So thanx alot.

Regards,

AKN

[jignesh_mehta3]

Hello Ashish,
Thank you for the appreciation. You can hit the "like" button if you like any post. (SCN is now going the Social Networking way...)

Thanks,

Jignesh Mehta

[Former Member]

Thanks you Ashish.