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Prerequisite :

  • Implementation of Service PO process
  • Implementation of TAXINN tax procedure
  • Implementation of account payable process

Target readers:

All who have basic knowledge of SAP MM (Procurement), SAP FI  & India Localization (CIN).


Keywords :

SAP, Invoice, Receipt, Purchasing, Service Tax,

Service Tax Split Scenario:

This document explains the solution for service tax split scenario under India localization. There is a requirement wherein service tax is charged by the service provider. Only 40% of such service tax is passed on to the service provider and 60% has to be deducted and paid to the govt. directly by the service receiver.

For Example:

Cost of service        :                            1000

Service tax@10%  :                              100

Bill Amount            :                            1100

The invoice for the service provider has to be raised:

Vendor to be credited by (1000+60%of 100) = 1040

Service tax to be paid directly to the govt. = 60

1.    Service PO

Service PO.png

2.    Tax Calculation in PO

Tax Calculation.png

3.    Invoice Verification (MIRO)

Invoice Verification.png

Procedure:

  1. 1. Create condition ZGTS, ZGTE, ZGTH as per attached screen (Negative condition)
  2. 2. Create account key TRP, TRE, TRH
  3. 3. Modify the tax procedure as per screen (Adjust ZGTS, ZGTE,ZGTH conditions)
  4. 4. Assign GL account for account key TRP, TRE,TRH in OB40

1.    Tax procedure (TAXINN) :

Tax Procedure (TAXINN).png

2.    Condition Master :

          Create condition master ZGTS & ZGTH similar to ZGTE

Condition Master_ZGTE.png

3.    Create Account Key TRP etc.

Account key.png

4.    GL assignment (OB40)

OB40.png

5.    Maintain condition record – FV11/FV12


FV11.png

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