India Tax

[Former Member]

Hi SD Experts

Can someone help me in knowing the tax structure and the mandatory config requirement (regarding taxes:service tax etc.) for a comany dealing in services.

I presume the CIN part will not be applicable in this case as the company is not into manuefacturing of goods. Do we need to net-off the applicable service tax ?

Will appreciate your opinion on the subject.

Manu.

[Former Member · Accepted solution]

Hi Manu,

CIN is the most nearest config India can have. Considering tax structure, it will have VAT for sales in same state. Generally VAT will be applicable when POE of the goods is in that State. So if POE is Bangalore then Karntaka sales will be VAT. But if sale is in Chennai and sold from Bangalore POE, then CST will come into picture.

Then we have education cess and service tax on top of these two. Also different states have different rates for VAT/CST/Service tax for different goods and services. Hence while defining the tax condition records we cant rely on only one tax classificaation from material master and customer master. We have to define multiple tax classification to identify the correct tax structure for that state.

In my company we dont have CIN, but we use CATT scripts to upload the India orders.

Hope this helps. Reward if useful.

Kind Regards

Sandeep

[Former Member · Accepted solution]

Thanks Sandeep

My basic issue here is that these are not sale of goods.These are services only and service tax is applicable currently

Manu

[Former Member · Accepted solution]

Hi Manu,

Eventhough we sell some service like After warranty service or paid warranty service for a product, this will be packaged as a good and hence sales tax and service tax wil be there. If the product is service then % of the CST and Service tax is different for different states.

Hope this helps.

kind regards

sandeep

[Former Member]

Hi There,

Since this being imported equipment and i will be having CVD can i use this CVD accumulated in CENVAT credit account to offset the service tax

Please give me your opinion on it

Manu

[Former Member]

Hi Sandeep,

Could you please let me know apart from standard conditions of JIVP , JIVC for taxes and service (??) where all I can utilise the CIN functionality.I understand excise will not be applicable if it is a trading or service material ?

Thanks so much in advance.

Manu

[Former Member]

Hi,

use below for serevice tax

zpse- service charges

zrep- repairing charges

ztrv-to and fro charges

zloc- local conveyance

then total of this will be value for service tax

then give

zser - servicetax 12.5%

zec3-education cess on s.tax @ 2%

jsts- H.edu cess on s.tax @ 1%

then total of above and below is Grand total

Define above conditon types then do pricing procedure, this is the only thing u have to maintain.

Then maintain account keys defined in T.code : OBCN

then goto OB40 and for the account keys created over there for those assign G/L accounts.

And do all configuratin as normal process. that is order to billing. here service related will be order related billing only there iwll be no delivery.

Hope it will be useful

Reward if helped you

Bye

Anil