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Former Member
Jan 02, 2008 at 04:53 AM

service tax problem

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Hi all,

i am with the following scenario:

1. Created a PO for Vendor 10116 (farmer) of 1 qty @ Rs.1000/-

2. Transportation charges assigned to delivery vendor 10125 (transporter) at condition type FRB1 for an amount of Rs.200/-

3. Done GR for main material:

BSX = Rs. 1000 (debit)

WRX = Rs. 1000 (credit)

4. Done invoice for main vendor (10116) for an amount of Rs. 1000/-

WRX = Rs.1000 (debit)

Vendor A/c = Rs. 1000 (credit)

5. While the creating the invoice for the transporter (vendor 10125) for an amount of Rs. 200/-

Requirement = 3.09 % service tax to be calculated on Rs.200/-

So created a tax code S1 for 3.09% and assigned the same while doing the invoice so calculation is as follows:

Vendor A/c (10125) = Rs. 206.18 -

Transportation Charges (from the Account key of condition type FRB1) = Rs.200 +

Service Tax Payable = Rs. 6.18 +

(i.e transportation charges = Rs. 200) + (service tax = Rs.6.18) = Vendor A/c (Rs.206.18)

But requirement is:

Vendor A/c (10125) = Rs. 193.82

{(transportation charges Rs.200) – (service tax Rs.6.18)}

so on the final vendor A/c amount =Rs.193.82 ,,, withholding tax of 2.06% (2.06% of 193.82 = Rs.3.99) is being deducted ,,

finally,,,

Vendor A/c(10125) = Rs. 189.83 ➖

Transportation charges = Rs.200 ➕

Service tax = Rs. 6.18 ➖

With holding tax = Rs. 3.99 ➖

How this is possible? Plz guide me,,,

regards,

urendra