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%)=48750||2681.25|
|Service Tax @12% on Rs 65000||7800|
|Edu Cess @ 2% on Rs 7800||156|
|S&H Edu Cess @1% on Rs 7800||78|
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.