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Swachh Bharat Cess Configuration For Indian Clients
Swachh Bharat Cess Configuration For Indian Clients
Dear friends,
Let me explain the step by step configurations required to have Swachh Bharat cess in SAP.
Then in T code FV11 create condition records for SBC for the service tax applicable tax codes.
The abovementioned process meant for Swachh Bharat cess payable to vendor and Service tax
credit is available.
If Service tax credit is not available then we can include the SBC with the Service tax rate.
That is Service tax rate 14% and SBC 0.5% so total taxes is 14.5% and the entire amount will
be booked into the natural expenses head.
With respect to Reverse charge cases, in our company we are following Withholding tax type
route for Reverse charge mechanism.
We have decided to include the SBC rate in the Service tax rate and then before processing
returns pass manual JV to show separately the Service tax and SBC amount.
Example If the Service tax base amount is 1000 Crores, then Serv tax is 140 C and SBC is 5C
so in reverse charge, Service tax payable head will be credited by 145C . At the time of filing of
return We will pass rectification entry like,
ST payable DR 145 C
ST payable CR 140 C
SBC CR 5 C.
Then create new account key for SBC vide SPRO-->Sales and Distribution-->Basic functions--
>Account assignment/Costing-->Revenue account determination-->Define and assign account
keys.
Then in Pricing procedure assign the SBC condition type in T code V/08 (SPRO-->Sales and
Distribution-->Basic functions-->Pricing-->Assign Pricing procedures)
Hope it helps.
Kindly revert back for any clarification.
Your views and criticisms are also welcome.