service tax is to be determined based on the due date in cash flow

[Former Member]

Hi Friends,

Service tax is been revised from 10% to 12% from 01-Apr-12, we completed the required config like created new tax code and assigned to taxtype and taxgroup in RE.

Now it is working fine and we are able to find new tax from 01-Apr-12 in cash flow of contracts for the cash flow items which are from 01-Apr-12. Here the business requirement is there are some cash flow line item which are belongs to March (01-mar-12 to 31-mar-12) are pending for RERAPP due to some business decision, and now business wants to post those pending planned line items in Apr-12 (with 12% service tax). My understanding is tax determination is depends on the due date in cash flow line items, hence i have changed the due date in cash flow line item as 01-Apr-12 and re-generated the cash flow through tcode RECDCGOL.

Still contract is showing with old tax code (with 10%) instead of new tax code (12%),

what could be the reason for not considering due date for tax rate determination, or is there any way out to address this issue...

Thanks in advance,

Srini

[sasikanth_reddy3]

Hi Srini,

There is no standard solution for your requirement.

if the frequency = 6/12 months and if we change due date in cash flow it will pickup before april 12% rate.

For monthly there is no standard solution to calculate 12% rate before april.

Thanks

Sasikanth