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Former Member

Services

Hi,

Our client is getting Service from a Service provider for construction activities.

Service provider raises a invoice in which value he states that 70% is the material used (value)and 30 % is the service value.

He says 12.36 Service tax (of 30%) is applicable for the service only and not for material which goes in VAT.

How to configure this in SAP.

Regards

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2 Answers

  • Best Answer
    Oct 08, 2008 at 06:39 AM

    Hi

    as per your requirement stated you need to modify your pricing procedure. you need to take a base value from delivery charges. then use alternate base value/ condition column where you define the formula to bifercate the base value in your case 70 or 30%. the Tcode for this is VOFM. then calcaulate the price for material and tehn for services. to configure the requirement you need to take help from abapers.

    hope this will help you

    Edited by: adwait bachuwar on Oct 8, 2008 12:11 PM

    Edited by: adwait bachuwar on Oct 8, 2008 12:15 PM

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    Former Member
    Oct 08, 2008 at 06:44 AM

    Hi ,

    Use the subcontracting process for the scenario whereby the service tax applies to the material processing cost i.e. service offered only.

    Thanks & Regards,

    Amjad

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