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Mar 04, 2016 at 09:38 AM

Freight and Unloading Charge in Single PO (against SCD) with Service tax only on Freight Charge

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Hello Experts

I have a requirement wherein a single vendor (freight vendor) is providing service for freight & Unloading. I have created two conditions in LE side for capturing these charges. When I create the Shipment cost document and in turn automatic PO is generated the charges are totaled and captured in Gross Price. As we have a scenario that service tax is to be levied only on freight charges and not on the unloading charges.

I believe the service tax will be levied on the gross price in PO and hence I am looking for a solution where in only freight charge is captured in Gross price condition type of PO and unloading charge to be captured in some other condition type on which service tax cannot be calculated.

In total the PO created should have the payment structure suggested here under:

Condition 1 - Gross Price (Freight charge is mapped): Service tax is calculated on this.

Condition 2 (Unloading Charge is mapped) : Service tax is not levied on this.

Condition 3 (Tax Condition) : Service tax amount

Total PO Amount will be:- Value of Condition(1) + Value of Condition(2) + Value of Condition(3).

I look forward to your valuable inputs for the resolution.

Regards,

J K Tharwani