Applicability of Swachh Bharat Cess in Lease

[Former Member]

In RE module We have to made Swachh Bharat Cess applicable. It needs to be accounted for in a separate GL and a separate line item needs to be shown in invoice. But there is no provision to insert second tax code in RE module. One tax code is already used for service tax purposes. How to incorporate second tax code in RE module while create new lease?

[Former Member]

Issue has been finally resolved. Thanks for all for their valuable feedback and suggestions.

[Former Member]

Hi,

please let us know, how did you find the solution.

[Former Member]

Sorry, I saw the message late. The steps are as under;

OBYZ     Created New Condition Type

OBCN    Created A/c Key with tax type 1 & Posting indicator 2

FS00      Created new GL

OBYZ     Modified Tax Procedure TAXINJ to include newly created Condition with A/C Key

OB40     Configured Accounting Maintenance. Automatic Posting

[sudhirkumar_tomar]

Hi Ashu,

The tax handling occurs in RE-FX using tax types and tax groups that are assigned the relevant valid tax code over time. The contracts and the contract conditions contain only the tax type and tax group.  Therefore, you do not have to make changes to the contract conditions if tax applicable as per standard configuration. You must only ensure that the cash flow is updated after the tax code is changed.

After you have defined the new tax data, you have to regenerate the cash flow. To do this, execute transaction RECDCGOL for all contracts in the company codes affected by the tax change. Note that the "Force regeneration" indicator must be set.

Configure new tax code in SPRO in existing tax group

1. RECACUST->Flexible Real Estate Management (RE-FX)->Accounting->Integration FI-GL, FI-AR, FI-      AP->Taxes->Assign Tax Codes

     Assign new tax code which is created by FI team for 14.5% with tax group in time dependent.

New Tax code assign with tax group (FULL01) wef 15.11.2015

2.    RECACUST->Flexible Real Estate Management (RE-FX)->Accounting->Integration FI-GL, FI-AR,                FI-AP->Taxes->Assign Tax Code (for FI Document)

once you had complete this, you will see that in contract new rate automatically calculate for all contract @14.5%.

Please revert with tax config snap shot if issue still persists.

Regards

Sudhir

[Former Member]

Dear Sudhir,

Thanks for your valuable feedback. We do not have RE Flexi implemented here. We are using RE-Classic. Therefore, the solution suggested by you may not work in this case.

[former_member184771]

hi,

you need to create a new condition type for swachh bharat cess and need to define a new account key in your PP. subsequently you need to involves you FI consultant to do the need full setting in FI and create a new tax code for the same.

Thanks

SS

[Former Member]

Thanks Sumit. Your solution is fine. I   can do the customization in FI . But the problem is there is no field in RE screen for another the newly created tax code.  How to solve this issue?updateupupdate

[former_member184771]

You are using Re sales or REFX??

If Re Sales then you need to do the config at pricing procedure level which will come under SD scope.

If REFX, then you need to involve a REFX consultant.

Thanks.

SS

[Former Member]

This is RE Classic.

[former_member184771]

i.e. RE sales, you can go ahead with changes at pricing procedure level i.e. V/08.

[Former Member]

Hello Sharma,

You dont have to create another tax code for this,

Please follow Sumeet Sah comments -by which you can use one tax code with 2 GL accounts.

please create one more condition type in Transaction code -  OBYZ

and assign another GL account to new condition type (Account Key) in T.Code- OB40

[Former Member]

Hi,

I got your hint. But again in RE module to calculate service tax on different type of services we are following tax code route and not condition type route.

[Former Member]

Hello Sharma,

you can assign multiple tax codes with the help of adding New Postings in Posting Parameters tab.

please check below screens, where i have assigned two different tax codes for one contract with help of adding New Postings option. please check

[former_member184771]

Hi,

RE module didn't have any special way for posting Tax for the matter, it is simply the SD pricing and a/c determination process. where in you need to add a a/c key to your condition type in Pricing procedure and then maintain the condition record for tax condition type with the relevant tax code and from Tax code system will pick up the GL for posting.

Thanks

[Former Member]

Hi,

The TAXINJ procedure is being used in our system even for RE module. I have done required configuration. A new condition type   and a new A/c Key have been defined. In the TAXINJ procedure these have been added. The system is now deducting total s.Tax at 14.5% and posting 14% in correct GL. But the remaining .5% is not being posted to the GL assigned to the newly defined A/c Key.

Can you suggest what could be wrong and where?

[Former Member]

[Former Member]

Hello Sharma,

please check the GL master if it is allowed for taxes.

in Transaction code- FS00- check Tax category.

[Former Member]

Hi Syed,

Tried that also. But still posting is not being done. Incidentally the GL in which 14% posting is being done is also not allowed for taxes. Somewhere some other tuning seems missing which I am unable to locate.

[former_member184771]

Its a service tax, then why you are adding in TAXINJ process??

[Former Member]

Dear Sumeet,

The Service Tax @ 14% has been implemented here through TAXINJ only. Therefore any further change in service tax has to be implemented through this procedure only. We do not have SD module implemented.