TAX Procedure for Service tax and Reverse Mechanisam

[Former Member]

Hello All,

The client requirement is to develop tax procedure in FI area. While posting user FB60 or F-43 should have to deduct service tax, E cess, H.E Cess and reverse mechanism posting in same transaction code. It means that MM pricing procedure is not developing here and also SD tax pricing procedure is defining in same under SD tax procedure(V/08).

Only input tax scenario (Purchase Tax) for indian company.

If any document is available Please share implementation for same tax procedure or Guide the same tax procedures with steps wise.

Regards,

Venkat

[Former Member]

You basically need to configure taxes in this are of FI.

There should be plenty of training documentation on the internet.

Search for "SAP Taxes on Sales and Purchases".

The key steps are:

1. Configure tax procedure and assign it to the country

2. Configure the tax condition for the tax your require and include it in the tax procedure

3. In the tax code FTXP assign the tax code and GL accounts that will go with this tax condition.

[Former Member]

[Former Member]

Hi Prasad,

Thanks for replying.

The accounting entry seems good but asking for the configuration procedure for service tax positive debit and service tax negative credit, SBC and KKC negatives credits. How the tax will define in tax procedure. My client is not developing MM tax procedure but require reverse charge mechanisam under FI area.

Accounting entry should have to post as per your screen shot given above but require configuration for each tax line items. How to define the tax procedure for above screen shot.

Our accounting entry should post as given below in sap.

Expenses account Dr

Deferred tax input Credit Dr

Vendor KKC Dr

Vendor SBC Dr

Service tax Collected accont Dr

Credit to Vendor account

Credit to TDS account

Credit to Service tax payment account 

Regards,

Venkat

[Former Member]

1. in t code OBCN We need to be create the account transation keys(processing keys we can called)

there we should create the 6 accounting keys such as service tax positive and service tax negative and SBC Positive and SBC Negative and KKC positive and KKC negative after create these you need to be crate the 6 codition types in the  T CODE OBQ1..

3. After creating the conditon type you need to assign the conditons to your own tax procedure in the T CODE:OBYZ

4. After that you need to be assign the tax percentages in FV12 Tcode

after that you can do the postings which will come automatically...