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Former Member
Apr 07, 2009 at 12:33 PM

Service Tax Issue on Transportation

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In INDIA when we receive the invoice from transporters we have to calculate the service tax on the 25% of the invoice amount and the TDS as per the rates applicable entry should automatically be like this when we will use the service tax code eg

Invoice amount is 25000

Vendor Cr rs 22167

Transportation charges Dr 25000

TDS payable basic Cr 2500

Surcharge Cr 250

ECS Cr 55

HECS Cr 28

Service tax Dr 643 (p&l a/c)

Service tax`payable Cr 643(B/Sheet a/c)

Now the issue is when i use the tax code in SAP it posts a different transcation like

Vendor Cr rs 22167

Transportation charges Dr 24357

TDS payable basic Cr 2500

Surcharge Cr 250

ECS Cr 55

HECS Cr 28

Service tax provision Dr 643

Please let me know where i am doing wrong

Please revert

Sunil Kumar