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Former Member

Service tax on freight

All SAP Gurus,

We have made a PO with single line item.

In this PO we have maintained the basic price and taxes on material.

Freight charges are also maintained in PO.

Now, vendor have given us the invoice in which he had given the following details:

Material cost: 100000 INR

Excise Duty: 14000 INR

E Cess on Excise Duty: 2800 INR

HE Cess on Excise Duty: 1400 INR

Freight: 10000 INR

Service Tax on freight: 1200 INR

E Cess on Service Tax : 240 INR

HE Cess on Service Tax : 120 INR

Upto MIGO everything is working fine.

But during MIRO, I'm do not know how to handle with these two different tax codes (because in PO we can not maaintain tx code for freight).

can you please help me out?

Regards,

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4 Answers

  • Oct 15, 2008 at 12:59 PM

    u can try it by using unplanned delivery cost here u will find the

    unplanned del cost in details tab

    against it tax code is there try doing this

    regards

    kunal

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    Former Member
    Oct 23, 2008 at 09:03 AM

    not answered.

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    Former Member
    Oct 23, 2008 at 09:11 AM

    Hi Rajan.

    This scenario is quite common.while u r creating PO u r just meantioning Basic price,Excise and VAT in Tax code and also Freight.

    After PO u did MIGO in MIGO freight amount will be inventorised here there is no problem.

    While u r doing MIRO u r selecting Delivery cost as the layout.after that system asking for tax code in lite item that u have to select Service tax code(iT SHOULD BE sERvice tax,Ed cess on service tax and SHE on service tax)then u r posting will be correct.

    Service vendor Debit 1000 + (A)Servcie tax

    Freight charges 1000 -

    Servicetaxes A -

    I think u got the point.

    Thanks

    Raghu

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    Former Member
    Oct 23, 2008 at 09:11 AM

    there is solution for this.

    create a separate tax code for sevice tax

    while doing MIRO use that tax code to calculate the sevice tax

    regards,

    sujit

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