Service Tax SAP Labs India Bangalore

OBJECTIVE This document will detail the configuration required on the SD side to enable computation of Service tax and ducation !ess in the output Service order" PROCEDURE: Initial Steps !reate two new Tax conditions# $S %& $ S%" Steps for creation of Tax !ondition is illustrated below * Create new condition t pes SAP Standard IMG -> Financial Accounting -> Financial Accounting Global Settings -> Tax on Sales/Purchases -> Basic Settings -> Check Calculation Procedure" 'Transaction (B)*+ Select , e!ine Condition T"#es$ Select !ondition T-pe $I./ and !lic0 on !op- as '12+ and give the !ondition t-pe as $S % and the .ame as 3Service Tax4" Select !ondition T-pe $I.5 and !lic0 on !op- as '12+ and give the !ondition t-pe as $ S% and the .ame as 3 !S on Service Tax4" O!tco"e# The two tax conditions& one for Service Tax and the second for ducation !ess on Service Tax have now been created"

/" Create a new tax postin# $e VS% and VS&"
The path for this is# SP%&  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Basic Settings  Check and Change Settings !or Tax Processing Select the Processing 6e- 78/ and !lic0 on !op- as '12+ and give the 6e- as 9S: and .ame as ,India Service Tax;" Select the Processing 6e- 78/ and !lic0 on !op- as '12+ and give the 6e- as 9S< and .ame as , !S on Service Tax;" 'ote: I( t)ere are "!ltiple service tax re#istration n!"*ers+ o! need to )ave separate acco!nt postin# to di((erent ,- acco!nts *ased on service re#istration n!"*er. T)is can *e done provided a separate tax code is "aintained (or eac) service re#istration n!"*er. To ac)ieve t)is o! need to de(ine a set o( / separate ,0- acco!nts (or service tax and Ed!cation CESS on service tax respectivel + (or ever service re#istration n!"*er. In s!c) a case+ please activate "!ltiple acco!nts postin# per tax code as (ollows: e!ining the G' accounts !or the Ser(ice tax and )CS on Ser(ice Tax*

Copyright © 2004 SAP AG. All rights reserved

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All rights reserved Page 2 of 13 .Service Tax SAP Labs India Bangalore SP%&  Financial Accounting  Financial Accounting Global Settings  Tax on Sales/Purchases  Posting -> e!ine Tax accounts =o to Details of the Transaction 9S: 'Service Tax =L account+ and enter the !hart of accounts> Select the Tax !ode !hec0 Box if -ou want to have Tax !ode Specific =L accounts or Blan0 when the common =L accounts> !lic0 on Posting 6e-s nter the %< as Debit and 5< as !redit" Copyright © 2004 SAP AG.

This should be -aintained a!ter con!iguring the tax #rocedure. All rights reserved Page 3 of 13 .Service Tax SAP Labs India Bangalore !lic0 on Accounts" nter the =L codes > If -ou have tax code specific =L then enter the tax and =L account" After completing select the 9S< and do the same steps for !S on Service tax" 1 separate acco!nt (or ever tax code can *e "aintained as (ollows: +o.ill be s#eci!ic !or a #lant "ou can achie(e #osting to s#eci!ic account !or a #lant. Since the tax code . -aintain di!!erent account based on the tax code. Copyright © 2004 SAP AG.

acco!nts.acco!nts (or ever tax code at an acco!nt $e level. Steps are: 2 • • • 3o! )ave to de(ine t)e re4!ired tax codes.0.$ and clic0 on control data" The screen will look like as shown below. All rights reserved Page 4 of 13 . Create separate . 5)ile creatin# t)e postin# $e + please (ollow t)e c!sto"i6in# settin#s #iven *elow: SP%& Financial Accounting Financial Accounting Global Setting Tax on Sales/Purchase Basic Setting Check Calculation Procedure Define Procedures# Select TA?I.0.Service Tax SAP Labs India Bangalore 7aintain . Copyright © 2004 SAP AG.

ew ntries and add the following two entries in -our s-stem> Step @A< and @B< the !ondition t-pe $S % and $ S% respectivel-" The from step for $S % is /<< and @A< for the condition $ S%" )ou have to assign the accounting 0e9S: for $S % and 9S< for $ S%" A!ter adding the ne.Service Tax SAP Labs India Bangalore !lic0 on .ill look like as sho. condition t"#es the #rocedure .n belo. Copyright © 2004 SAP AG. All rights reserved Page 5 of 13 .

!ountr-# I. nter the Tax code and Tax Curisdiction !ode 'If it is applicable in -our s-stem+" Copyright © 2004 SAP AG. All rights reserved Page 6 of 13 .Service Tax SAP Labs India Bangalore Changes to Tax Code* SP%& Financial Accounting Financial Accounting Global Setting Tax on Sales/Purchase Calculation  e!ine Tax Codes !or Sales and Purchases.

All rights reserved Page 7 of 13 .Service Tax SAP Labs India Bangalore nter the /<D for the !ondition t-pe $S % and @D for $ S%" 'Please note that in the screen below have condition type ZSER in place of JSE4 and ZSTE in place of JES4"+ Copyright © 2004 SAP AG.

as '12+ and give the !ondition t-pe as $ST and the .Service Tax SAP Labs India Bangalore Changes to Pricing Procedure* I+G Sales and istribution Basic Functions Pricing Pricing Control e!ine Condition T"#es. Copyright © 2004 SAP AG.ame as 3 !S on Service Tax4" I+G Sales and istribution Basic Functions Pricing Pricing Control e!ine and Assign Pricing Procedure Maintain Pricing Procedures /0/123 Select Pricin# Proced!re J81CT and clic$ on control data./ and !lic0 on !op. All rights reserved Page 8 of 13 .ame as 3Service Tax4" Select !ondition T-pe $I.as '12+ and give the !ondition t-pe as $S E and the . Select !ondition T-pe $I.5 and !lic0 on !op.

Copyright © 2004 SAP AG. 8or condition JSTE enter t)e (ro" step as 9:&.Service Tax SAP Labs India Bangalore Clic$ on 'ew Entries and add t)e step 9:& and 9/& and p!t t)e conditions JSER and JSTE respectivel . All rights reserved Page of 13 . 8or condition JSER enter t)e (ro" and to step as :&& and :%& . 7ar$ *ot) t)e condition as 7an!al and Statistical.

Service Tax SAP Labs India Bangalore -ST0CST Calc!lation C)an#es: Clic$ on 'ew Entries in t)e Pricin# proced!re and add t)e s!*total line 9<& and C)an#e t)e Description as =Service Tax> and #ive t)e (ro" and to step and 9:& to 9/& and "ar$ t)is total as statistical. Copyright © 2004 SAP AG. All rights reserved Page 10 of 13 .

Service Tax SAP Labs India Bangalore Clic$ on 'ew Entries in t)e Pricin# proced!re and add t)e s!*total line 9%& and C)an#e t)e Description as =Base Price ? Service Tax> and #ive t)e (ro" and to step and 9@A to 9<& and "ar$ t)is total as statistical. Copyright © 2004 SAP AG. All rights reserved Page 11 of 13 .

All rights reserved Page 12 of 13 . Copyright © 2004 SAP AG.Service Tax SAP Labs India Bangalore C)an#e t)e step B@A description as =Base Price ? Service Tax 0 BED> and t)e (ro" and To step as 9%& to B&&.

All rights reserved Page 13 of 13 .Service Tax SAP Labs India Bangalore Copyright © 2004 SAP AG.