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Former Member
Aug 02, 2010 at 07:04 PM

Tax code for GTA.

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Hi SAP Gurus,

need your help to create the tax code for GTA on outward freight. As per the GTA the tax would be paid by the business and not the vendor. In my case the freight is the outward frieght (Freight paid during the goods transported from plant to sub contracting location) and the freight which would be paid to the transporter is full amount. Take an example if the freight charge is 10000 Rs then the full amount would be settled to the vendor. but the service tax on freight would be paid by the business to the government and this cost will go to the Freight account. the accounting entries during invoice as follows

Freight a/c Dr 10000

To Vendor A/c Cr 10000

Freight a/c Dr 1030 (service tax 10% + education cess on ST 2% +higher edu cess 1%)

To ST payable a/c Cr

To Education Cess a/c Cr

To SEC cess a/c Cr

Can any one guid me how to create this one. if you can help me with condition types and the setting required will help me a lot.

Regards,

Deva