This document provides instructions for configuring Service Tax and Education Cess tax conditions and accounts in SAP for reporting in India. Key steps include:
1. Creating new tax conditions for Service Tax and Education Cess
2. Defining new tax posting keys for Service Tax and Education Cess accounts
3. Configuring tax codes, procedures, and pricing to calculate Service Tax and Education Cess amounts and post to the correct general ledger accounts.
TO ENLIGHTEN THE PARTICIPANTS ON COUNTRY VERSION INDIA (CIN) AND THE VARIOUS REQUIREMENTS WHICH ARE TO BE COMPLETED UNDER THE INDIAN STATUTE. HOW CIN INTERFACES WITH SAP SD, MM AND FI PROCESSES AND MEETS THE REPORT REQUIREMENTS .
TO ENLIGHTEN THE PARTICIPANTS ON COUNTRY VERSION INDIA (CIN) AND THE VARIOUS REQUIREMENTS WHICH ARE TO BE COMPLETED UNDER THE INDIAN STATUTE. HOW CIN INTERFACES WITH SAP SD, MM AND FI PROCESSES AND MEETS THE REPORT REQUIREMENTS .
PAÍS VERSIÓN INDIA, PAYS VERSION INDE, 国家版印度
CIN Domain Basic concepts
FI consultant steps in CIN configuration
CIN VS Service Tax
CIN VS TDS
CIN MM Configuration Steps
CIN SD Configuration Steps
J1I9 CIN Number range objects
Master Data for CIN
MM CYCLES
DEPOT PLANTS
CIN TABLES
CIN Forms
CIN NOTES
CIN ACCOUNTING ENTRIES
UTILIZATION
CIN/VAT/TDS/SERVICE -TAX List of Reports
TAXINN VS TAXINJ
CAPITAL Procurement in SAP
SD CYCLES
Miscellaneous Topics
PAÍS VERSIÓN INDIA, PAYS VERSION INDE, 国家版印度
CIN Domain Basic concepts
FI consultant steps in CIN configuration
CIN VS Service Tax
CIN VS TDS
CIN MM Configuration Steps
CIN SD Configuration Steps
J1I9 CIN Number range objects
Master Data for CIN
MM CYCLES
DEPOT PLANTS
CIN TABLES
CIN Forms
CIN NOTES
CIN ACCOUNTING ENTRIES
UTILIZATION
CIN/VAT/TDS/SERVICE -TAX List of Reports
TAXINN VS TAXINJ
CAPITAL Procurement in SAP
SD CYCLES
Miscellaneous Topics
itelligence GST implementation
India is slated to adopt GST from Apr 1, 2017. Hence, businesses need to be technologically-ready
GST is a comprehensive indirect tax levied on Sale, Manufacture and Consumption of Goods and Services at the National level.
GST would apply to all goods other than crude Petroleum, Motor spirit, Diesel, Aviation Turbine fuel and Natural gas.
GST would apply to all services barring a few to be specified
Export and Direct taxes like Income Tax, Corporate Tax, Capital gains tax will not be affected by GST.
Imports will be subject to GST, but exports will be GST-exempt
Where the output is GST exempt, the GST paid on the input will be a cost to the business
Presentation on service tax Act 1994, for undergraduate commerce students of Goa University. Includes historical background, year wise tax collection e for last 20 years and procedural aspect of service tax Act 1994 with latest amendments are covered.
Withholding Tax is also called as retention tax. Its requirement of payer to deduct or withhold a
particular percentage from payment to the vendors and pay such amount to the Government on
behalf of vendors.
SAP provides you with two procedures for processing withholding tax: "Standard" and extended
withholding tax.
"Standard" withholding tax is the procedure that has always been supported by the system.
It offers you the following features:
Withholding tax for accounts payable
Withholding tax calculation during payment
Withholding tax code per vendor line item
Extended withholding tax provides the following additional features:
Multiple withholding taxes per customer or vendor line item
Withholding tax calculation for partial payments
Withholding tax calculation for invoice entry and payment
Payroll is the process of maintaining records of all employees’ salaries.
1) The Payroll function in Tally.ERP 9 facilitates accurate and timely
employee payments.
2) The Attendance/Production Type is used to record attendance and production
data.
3) Salary components constituting Pay Structures are called Pay Heads.
4) Gratuity is a monetary benefit paid by an employer to an employee, at
the end of the employment, for the services rendered over the period of
employment.
5) Attendance voucher is a voucher type used to record attendance, overtime,
leave or production details.
6)Payroll voucher is used to record employees’ payroll related transactions.
7)Payslip is a document, issued to an employee, that itemises each component
of his/her earnings and deductions.
8)Pay Sheet is a matrix report with details of pay heads pertaining to
employees.
9) Payroll Statement helps to generate reports for specific pay heads.
10) Attendance Sheet displays information relating to employees’ attendance
or production data.
11) Gratuity Summary Report calculates the liability of a company in terms
of gratuity.
1. Service Tax Configuration in India (SD)
Added by Rajesh Banka, last edited by Jyoti Prakash on Dec 01, 2011 (view change)
OBJECTIVE
This document will detail the configuration required on the SD side to enable computation of Service tax
and Education Cess in the output Service order.
PROCEDURE
Initial Steps
Create two new Tax conditions:
JSE4
JES4.
Steps for creation of Tax Condition is illustrated below
Create new condition types
(Transaction OBYZ)
Path: SPRO - Financial Accounting - Financial Accounting Global Settings - Tax on Sales/Purchases - Basic
Settings - Check Calculation Procedure
Select Define Condition Types
Select Condition Type JIN1 and Click on Copy as (F6)
and also provide the Condition type as JSE4 and the Name as "Service Tax".
Select Condition Type JIN5 and Click on Copy as (F6) and give the Condition type as JES4 and the Name
as "ECS on Service Tax".
Outcome
The two tax conditions,
2. one for Service Tax and
the second for Education Cess on Service Tax have now been created.
Create a new tax posting key VS9 and VS0
Path: SPRO - Financial Accounting - Financial Accounting Global Settings - Tax on Sales/Purchases - Basic
Settings - Check and Change Settings for Tax Processing
Select the Processing Key MW1 and Click on Copy as (F6) and give the Key as VS9 and Name as 'India
Service Tax'.
Select the Processing Key MW1 and Click on Copy as (F6) and give the Key as VS0 and Name as 'ECS on
Service Tax'.
Note: If there are multiple service tax registration numbers, you need to have separate account posting
to different GL accounts based on service registration number. This can be done provided a separate tax
code is maintained for each service registration number.
To achieve this you need to define a set of 2 separate G/L accounts for service tax and Education CESS
on service tax respectively, for every service registration number.
In such a case, please activate multiple accounts posting per tax code as follows:
Defining the GL accounts for the Service tax and ECS on Service Tax
Path: SPRO - Financial Accounting - Financial Accounting Global Settings - Tax on Sales/Purchases -
Posting - Define Tax accounts
Go to Details of the Transaction VS9 (Service Tax GL account) and enter the Chart of accounts
Select the Tax Code Check Box if you want to have Tax Code Specific GL accounts or Blank when the
common GL accounts...
Click on Posting Keys
Enter the 40 as Debit and 50 as Credit.
Click on Accounts.
Enter the GL codes
If you have tax code specific GL then enter the tax and GL account.
3. After completing select the VS0 and do the same steps for ECS on Service tax.
A separate account for every tax code can be maintained as follows:
Now maintain different account based on the tax code. Since the tax code will be specific for a plant you
can achieve posting to specific account for a plant.
This should be maintained after configuring the tax procedure
Steps are:
You have to define the required tax codes
Create separate G/L accounts
While creating the posting key, please follow the customizing settings given below:
Path: SPRO - Financial Accounting - Financial Accounting Global Setting - Tax on Sales/Purchase - Basic
Setting - Check Calculation Procedure
Define Procedures:
Select TAXINJ and click on control data.
Click on New Entries and add the following two entries in your system
Add Condition type JSE4 and JES4 respectively at appropriate steps.
Also ensure to maintain the step from for JSE4 & condition JES4 dependent from JSE4
You have to assign the accounting key
VS9 for JSE4 and
VS0 for JES4.
Changes to Tax Code:
Path: SPRO - Financial Accounting - Financial Accounting Global Setting - Tax on sales/Purchase -
Calculation - Define Tax Codes for Sales and Purchases.
Country: IN
Enter the Tax code and Tax jurisdiction Code (If it is applicable in your system). Tax jurisdiction Code is
not applicable for TAXINN.
4. Incase of TAXINJ, maintain Tax Code with appropriate Tax Condition %. Enter the 10% for the Condition
type JSE4 and 2% for JES4. The % have been changed in the budget announced in 2007 to 12 % for
service tax & 3 % for Education Cess.
Changes to Pricing Procedure
Path: SPRO - Sales and Distribution - Basic Functions - Pricing - Pricing Control - Define Condition Types.
Select Condition Type JIN1 and Click on Copy as (F6) and give the Condition type as JSER and the Name
as "Service Tax".
Select Condition Type JIN5 and Click on Copy as (F6) and give the Condition type as JSTE and the Name
as "ECS on Service Tax".
SPRO - Sales and Distribution - Basic Functions - Pricing - Pricing Control - Define and Assign Pricing
Procedure - Maintain Pricing Procedures (V/08)
Select Pricing Procedure JFACT and click on control data & add the new condition at appropriate steps in
the pricing procedure & modify Pricing Procedure calculation as per requirement.
Mark both the condition as Manual and Statistical.
SAP Notes related to Service Tax in India:
SAP NOTE NUMBER DESCRIPTION
Note 1353362 Service Tax Master Note
Note 1391485 Outbound Excise Invoice enhancements for Service Tax
Note 1393506 Service tax enhancements for ARE Reversal process
Note 1392593 Service tax enhancements in Monthly utilization
Note 1393534 Service Category determination & Service tax returns (ST3)
Note 1393460 Update of GAR7 challan information-ST development
Note 1522334 Missing corrections of Service Tax Enhancements
Note 1500389 Change button not enabled in J1IIN utilization screen
Note 1510426 PART2 Entries not generated for excise invoice post-J1IEX