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Former Member

25%-75% Service tax Reverse Charges Mechanism For (Non deductible)

Dear Experts,

Please share some screenshot configuration for NON DEDUCTIBLE service tax reverse charge.

also mention what are the condition type use for this configuration.

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2 Answers

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    Former Member
    Oct 06, 2013 at 02:42 PM

    Hi,

    If your service tax is NON-DEDUCTIBLE, during posting your service tax amount will be posted to respective G/L account.(for example,in case of material procurement  service tax amount will be posted to Inventory account)

    Refer SAP Note:921634 and find how tax code concept used to transferred the real tax value from one tax code to anther specified tax code.

    For more refer threads which already discussed on service tax transferred

    http://scn.sap.com/thread/2002207

    http://scn.sap.com/thread/1910027

    Regards,

    Biju K

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  • Oct 06, 2013 at 07:30 PM

    Hi,

       Please check the note: Note 1736781 - Service tax Legal changes for Abatements and Negative list.

    Please do the configs as per the attached zip file in the note.

       Now if you want the same for nondeuctible service tax, just maintain the account key as NVV (if you want to add the ST directly to material code) or a copy of NVV (If you want to add the ST to different GL even though its non deductible). - For this, go to OBCN and create new account key by copying NVV and maitain the posting indicator as 2 as shown below.

      

    Hope its clear and helpful.

    Regards,

    AKPT


    123.png (12.7 kB)
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