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Posting Transaction for CST and Service Tax in Software purchase


I have received a bill from a software company for purchase of Software.

The bill amount goes as follows.

Base Amount for CST (65000*75%)48750
CST @ 5.5% on (Rs 65000*75%)=487502681.25
Service Tax @12% on Rs 650007800
Edu Cess @ 2% on Rs 7800156
S&H Edu Cess @1% on Rs 780078
Total Tax10715.25
Bill Amount75715.25

Kindly suggest the Journal Entry.

How do I post this transaction in SAP- for example: do I have to create any Tax Code for CST and why? CST is a tax charged by seller and we are not getting any credit for the same. Also, how do treat the Service Tax in this case.

Former Member
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