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Service Tax Balance Transfer

Hi Experts,

As per the latest notification all service tax utilisations are done on due basis and hence the deferral program is not required now. But for those credits taken before this notification needs be carried forwarded and utilised only on receipt.

Client has gone live after this notification and hence this balance is kept in a separate account. As and when the amounts are received the amounts need to be transfered to service tax payable account. While trying to do so in f-04/fb05 the system is throwing the following error

Tax code Y1 may only contain one assignment line

Message no. FF731

Diagnosis

For direct postings to tax accounts, only tax codes containing exactly one tax line may be used. Tax codes with several rates or a nondeductible portion are not allowed here.

Procedure

Use a different tax code.

For direct postings to a tax account, you might have to define a separate tax code for which only one line with a percentage rate other than zero is active in percentage rate maintenance. All other lines must be inactive.

To do this, choose Maintain entries (F5).

Please advice

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1 Answer

  • Posted on Sep 30, 2011 at 02:12 PM

    Hi:

    Please see the OSS Note 921634 - Service tax India: Transfer from Interim to Final account to rectify the issue. There seems an issue with your routine assignment and activation in VOFM (ask SD Guy). Also check in FTXP if this tax code has more than one line item. If there are then deactivate the one not required. Another way to avoid this issue is to go to FS00 and in the control tab, select indicator "posting without tax code allowed" ..

    Regards

    Edited by: Atif Farooq on Sep 30, 2011 7:16 PM

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