This document provides instructions for utilizing service tax credits and paying the net tax amount in SAP. It includes the process flow, screenshots of key screens, and step-by-step instructions. The process involves simulating credit utilization, paying the tax online, posting the utilization in SAP, and making the outgoing payment. The payment is made by debiting service tax clearing accounts and crediting bank accounts in a journal entry if credits are insufficient.

1. RITES SAP FI End User Manual
1.1 F070 – Utilization of Credit & Payment of
Service Tax

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Contents
1.1 F070 – Utilization of Credit & Payment of Service Tax ....................................................... 1
1 Process overview........................................................................................................................ 3
1.1 Process Flowchart............................................................................................................... 4
1.2 Screen shots........................................................................................................................ 5
1.2.1 Simulate Utilization of Credit........................................................................................ 5
1.2.2 Pay Tax Online........................................................................................................... 10
1.2.3 Utilization of Credit.................................................................................................... 11
1.2.4 Outgoing Payment..................................................................................................... 12
1.2.5 Print Journal Voucher................................................................................................. 13
1.3 Process steps. ................................................................................................................... 15

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1 Process overview.
 At the end of the month service tax credit is utilized and the net amount due is paid.

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1.1 Process Flowchart

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1.2 Screen shots.
Processstep01
1.2.1 Simulate Utilization of Credit
Role:FinanceExecutive -Taxation.
Menu Path and Transaction Code: Use the following menu path to go to the Organizational Unit screen:
Via Menus Type J1ILN in command field > Indirect Taxes >
Sales/Outbound Movements > J2IUN - Fortnightly Payment
Via Transaction Code J2IUN
Enter T code J2IUN in command field and press enter key.

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Enter company code, Plant
and excise group.
Enter date range.
Enter business area and
payment date.
Selectradio button of pay service
tax from Cenvat and Service credit.
Select execute button.

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Systemshowsthe amount
payable andamountremaining.
Select SERT (Service tax basic) line.
Select ‘Select duty’ button.
Amount available for utilization.

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Enter the amount against
remaining balance.

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Repeatsame steps forESERandSSER.
Remainingamountwill become zero
and Indicator colour should change
to green.
Select simulate button.

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System will simulate the entries as below.
Processstep02
1.2.2 Pay Tax Online
Role:FinanceExecutive -Taxation.
Not to be done onSAP.

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Processstep03
1.2.3 Utilization of Credit
Role:FinanceExecutive -Taxation.
Not to be doneonSAP.
Menu Path and Transaction Code: Use the following menu path to go to the Organizational Unit screen:
Via Menus Type J1ILN in command field > Indirect Taxes >
Sales/Outbound Movements > J2IUN - Fortnightly Payment
Via Transaction Code J2IUN
Followthesteps asprocessstep01
On simulationscreenselectcontinuebutton.

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Click on save button ( ) to save the document
F029
1.2.4 Outgoing Payment
FinanceExecutive – Taxation
Pleasereferusermanual for the processF029
If amount isnot availableforcredit.Enterthe journal voucherwithdebitingservicetaxclearing
accountsand creditingbankaccounts.
Select continue button.

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Servicetax clearingaccountsare:
Basicservicetax clearingaccount: 16613201
Servicetax E cess clearingaccount: 16613206
Servicetax Sec.E cessclearingaccount:16613208
Processstep04
1.2.5 Print Journal Voucher
Role: FinanceExecutive – Taxation
Pleasereferusermanual for the processF029
Menu Path and Transaction Code: Use the following menu path to go to the Organizational Unit screen:
Via Menus SAP customized T code
Via Transaction Code ZFIR001
Enter T code ZFI001 in command field and press enter key.
Enter document number, company code
and year.
Enter output device LP01.

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System will give the print preview.
Type Ctrl + P or select Text menu and print from the menu bar.
Click on execute.

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1.3 Process steps.
Step
No.
BBP Process Step Instruction Reference
Utilizationof
Credit& Payment
of Service Tax
01 Simulate
Utilizationof
Credit
1. Mandatory fieldsare Companycode,Plant,excise group
and period.
2. Selectthe radiobuttonPay service tax fromCenvatand
Service tax.
02 Pay Tax Online Notto be done onSAP
03 Utilizationof
Credit
1. Mandatory fieldsare Companycode,Plant,excise group
and period.
2. Selectthe radio button Pay service tax from Cenvat and
Service tax.
F029 Outgoing
Payment
Outgoingpaymententryismade.
04 PrintJournal
Voucher
Journal voucherforutilization of service tax isprinted.