composite tax handling in procurement using TAXINJ

[Former Member]

Dear Experts,

can anyone confirm if standard SAP supports fucntioanlity to handle composite schema in procurement wherein single PO line item can have composite tax structure i.e. service tax and CST using Tax procedure TAXINJ.

Regards,

[Former Member]

Hi,

Yes. Its possible. Create a separate tax code for this requirement and maintain the required rates against the separate conditions for CST / Service tax in FTXP transaction

Thanks,

[Former Member]

Hi,

Kindly check the below note:

1571186 Changes to Service Tax from Indian Union Budget 2011-2012

Pls check the below point,

2. On the input side, service tax will no longer be a deferred tax there
is a change in the input credit laws. The credit on input services can
be availed on receipt of invoice. However, the payment has to be made
within three months.

This is effective from 01.04.2011 irrespective of the fact that the
service provider may continue to pay service tax on receipt basis.

Regards,

Rajasree R