Service tax-SD

[Former Member]

Hi friends,

Service tax condition type jser is not availiable in taxinn and taxinj and how jser condition type will come in the sd pricing procedure.

Education cess condition type is availiable but we have to apply any note.

waiting for reply

Regards.

kishore

[Former Member]

Kishore,

Check out Patch 16 released by SAP.Where u have the procedure for Service tax calculation.

in tax procedure.

Regards,

K.Vivek

[Former Member]

if you give your email id, i'll forward you the document with screenshots.

Regards,

Rajesh Banka

[Former Member]

Hi Rajesh ,

Please provide the document with screenshots. I did configuration as per your steps but i am not getting.So Please provide complete document,if any thing else required apart from steps given by you.

Thanks in advance,

Sreedhar

[Former Member]

You may have to do Service tax configuration.

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Basic Configuration for service tax is as under:

OBJECTIVE

This document will detail the configuration required on the SD side to enable computation of Service tax and Education Cess in the output Service order.

PROCEDURE: Initial Steps

Create two new Tax conditions: JSE4, JES4. Steps for creation of Tax Condition is illustrated below

• Create new condition types

SAP Standard IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check Calculation Procedure. (Transaction OBYZ)

Select ‘Define Condition Types’

Select Condition Type JIN1 and Click on Copy as (F6) and give the Condition type as JSE4 and the Name as “Service Tax”.

Select Condition Type JIN5 and Click on Copy as (F6) and give the Condition type as JES4 and the Name as “ECS on Service Tax”.

Outcome: The two tax conditions, one for Service Tax and the second for Education Cess on Service Tax have now been created.

1. Create a new tax posting key VS9 and VS0.

The path for this is:

SPRO  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Check and Change Settings for Tax Processing

Select the Processing Key MW1 and Click on Copy as (F6) and give the Key as VS9 and Name as ‘India Service Tax’.

Select the Processing Key MW1 and Click on Copy as (F6) and give the Key as VS0 and Name as ‘ECS on Service Tax’.

Note: If there are multiple service tax registration numbers, you need to have separate account posting to different GL accounts based on service registration number. This can be done provided a separate tax code is maintained for each service registration number.

To achieve this you need to define a set of 2 separate G/L accounts for service tax and Education CESS on service tax respectively, for every service registration number.

In such a case, please activate multiple accounts posting per tax code as follows:

Defining the GL accounts for the Service tax and ECS on Service Tax:

SPRO  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Posting -> Define Tax accounts

Go to Details of the Transaction VS9 (Service Tax GL account) and enter the Chart of accounts…

Select the Tax Code Check Box if you want to have Tax Code Specific GL accounts or Blank when the common GL accounts…

Click on Posting Keys

Enter the 40 as Debit and 50 as Credit.

Click on Accounts.

Enter the GL codes … If you have tax code specific GL then enter the tax and GL account.

After completing select the VS0 and do the same steps for ECS on Service tax.

A separate account for every tax code can be maintained as follows:

Now maintain different account based on the tax code. Since the tax code will be specific for a plant you can achieve posting to specific account for a plant. This should be maintained after configuring the tax procedure.

Steps are: -

• You have to define the required tax codes.

• Create separate G/L accounts.

• While creating the posting key, please follow the customizing settings given below:

SPROFinancial AccountingFinancial Accounting Global SettingTax on Sales/PurchaseBasic SettingCheck Calculation Procedure

Define Procedures:

Select TAXINJ and click on control data. The screen will look like as shown below.

Click on New Entries and add the following two entries in your system…

Step 270 and 280 the Condition type JSE4 and JES4 respectively. The from step for JSE4 is 100 and 270 for the condition JES4. You have to assign the accounting key

VS9 for JSE4 and VS0 for JES4.

After adding the new condition types the procedure will look like as shown below

Changes to Tax Code:

SPROFinancial AccountingFinancial Accounting Global SettingTax on Sales/PurchaseCalculation  Define Tax Codes for Sales and Purchases.

Country: IN

Enter the Tax code and Tax jurisdiction Code (If it is applicable in your system).

Enter the 10% for the Condition type JSE4 and 2% for JES4. (Please note that in the screen below have condition type ZSER in place of JSE4 and ZSTE in place of JES4.)

Changes to Pricing Procedure:

INGSales and DistributionBasic FunctionsPricingPricing ControlDefine Condition Types.

Select Condition Type JIN1 and Click on Copy as (F6) and give the Condition type as JSER and the Name as “Service Tax”.

Select Condition Type JIN5 and Click on Copy as (F6) and give the Condition type as JSTE and the Name as “ECS on Service Tax”.

INGSales and DistributionBasic FunctionsPricingPricing ControlDefine and Assign Pricing ProcedureMaintain Pricing Procedures (V/08)

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Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

hi

Go to vk 13 and give utxj there u can a list of condition types that are mentioned in the procedore TAXINN which is assigned to the country IN.

in the list u give the respective values to the combination of condition types where u assign all the values to the tax code(icreate it or assign the value before the condition type jser if the tax code is already existing).

in the order from the pricing procedure utxj is picked up and from there condition type gets updated

reply me as when u are cleared

award if it is hellpful

ravi