Wrong calculation of Service Tax

[Former Member]

Dear Experts,

In the import procurement, PO contains the condition type with the Handling charges n iaddition to other conditions required for the Customs.

After following complete steps of Import like Clearing the Customs Invoice, GRN with capturing Excise Invoice, MIRO of Import vendor etc.

System is calculating wrong service Tax value when I am clearing the Invoice of Handling Charges with the service tax code (only one condition record is maintained for the condiion types as Service Tax Cr = 12%, ECess on Ser Tax=2%, SEcess on Ser Tax =1%  with the Tax code)

When I use this service Tax code Domestic Purchase for same handling agent then service tax value is correct.

I checked the PO condition value for handling charges, Exchange rate difference, condition type of handling charges etc but not found the cause of error.

I am unable to understand why system calculating wrong service Tax for the Import Only. Please help me.

Regards

Tushar

[Former Member]

thanks Binoy....

the issue is resolved.

[binoy_vargis1]

It will be nice if you can explain how you solved the issue and close the thread.

Refer this article.

Regards

Binoy

[binoy_vargis1]

what is the calculation that is coming wrong. Elaborate with component of duties.

[Former Member]

Hi Tushar,

I am also facing same issue...

did you resolved your issue??

Please guide me how to solve.

regards,

Irfan