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TAX Creation

Former Member
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Hi Experts....

Please solve my problem...

I am using Service Tax plus VAT Tax...

Service Tax is 10.3%

I need to apply eCess 2% on service 10.3

and

HeCess 1% on Service 10.3

this Output have to apply on VAT 4% * Gross Document Total

Please Give the solution....

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

Kindly tell me the exact tax structure.

1. Service Tax 10.3 % on Doc Total

2. Cess 2 % on Service Tax

3. H Cess 1 % on Service Tax

4. VAT 4 % on (Doc Total + Service Tax) or VAT 4 % on (Doc Total + Service + Cess + H Cess)

Please clarify. So that I can try your solution.

Regards,

Maheswaran.

Former Member
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Hi,

Please Create TAX by following step

1) define tax parameter

2) define tax Type

3) define tax Formula

4) define tax Type combination (select as per yr query)

5) define tax code

Hope you must be clear now....

Thanks

Kevin

Answers (2)

Answers (2)

Former Member
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HI

Under Admin >> Setup >> Finanacial >> Tax >> Tax Code

In ADD Mode

Define Code- SER+VAT

Description - Service Tax And Vat

Tax Type Combination >> Define New

UR new window will appear give appropriate code and description and select service with formula of service similarly cess_st and HsCess_ST and in the 4th combination select VAT and define new formula which is as under

BaseAmt=Service_TaxAmtCess_ST_TaxAmtHSCess_ST_TaxAmt+Total

TaxAmt=BaseAmt*Rate

Add this and select all the relanvent tax percentage in the tax code window. and ADD

You will get desired

Close this thread

Ashish Gupte

Former Member
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Hi Ashish....

Your answer is for Service Tax... It is ok... But what about the VAT...

Consume the following scenario...

Item1 -> INR 100.00

Now the total Document total was INR 100.00 without tax...

Now VAT 4%

So the Doc. Total is INR 104.00

now i need to apply Service(Service 10% + eCess 2% + Hcess 1%) Tax on INR 104.00.....

Have you got my point.........

Please Solve my Problem ya.............

Former Member
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Hi Manikandan,....................

Its very simple..............

The VAT Tax code on Total is already there by default, Service tax with eCess and HSCess is also there. But in service tax the VAT is not there so include VAT in tax formula as wel as in Cess and HSCess also.

But you need to create only 10% rate for service which is not there. Once you create 10 %, create tax type combination in sequence like 1)VAT 2) Service Tax, 3)Ecess_ST, 4) HSCess_ST add it

Then Create Tax code with proper rates with this tax type combination.

Your tax code will get calculate as you explaned right now..............

I know this will work definitely ...............

Regards,

Edited by: RAHUL MOUNDEKAR on Jul 22, 2009 9:47 AM

Edited by: RAHUL MOUNDEKAR on Jul 22, 2009 9:52 AM

Former Member
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Hi Rahul......

initially i am tried in this way only... it is not calculating as what i am explained...

If i created in your way...

Service tax is working but what about the total document tax...

in your way it is happening like this...

item 1--> INR 100.00

The total doc cost is INR 100.00 excluding tax...

now i am applying VAT 4%...

now the total doc. amount is INR 104.00

Now i am applying Service Tax(service 10%+ ecess 2% + hscess 1%) 10.3%

If applied like this means.. the tax 10.3 is calculating on Doc. Total Excluding VAT Tax that it is calculating on INR 100.00 only..

It is not calculating on INR 104.00 that is doc. total including VAT 4% Tax...

Former Member
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Dear Manikandan................

If I'm not wrong then on Your Rs.100 document total 4% will be VAT then Tax amount will be Rs. 4 and Document Total will be 104. Now if you apply service tax with eCess_ST and HSCess_ST on Rs.104 then will it be Tax amount Rs. 14.71? If yes then you need to include VAT formulation in Service tax formula.

Regards

Former Member
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Hi Rahul.....

Ya man.. Exactly... I got your point... But how to create a Service Tax on VAT 4%* Doc. Total in SAP B1... That is the Problem....

I dont know how to use the Tax Formulation for this issue....

Former Member
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Hi

You can do one thing you need to create new serive tax in which VAT_TaxAmt would be there alongwith Total

Regards,

Edited by: RAHUL MOUNDEKAR on Jul 22, 2009 1:16 PM

Former Member
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hi

ok you want vat will be added first then on total you want service tax

Pls change the in the formula for service use following formula

Service_baseAmt = TOTAL + Vat_taxamount

*service_tax amt = service_baseamt * Rate*

Now you will get what you want

pls let me know if any thing left

Ashish Gupte

Former Member
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Hi There,

This setting can be controlled by the tax procedure TAXINN (Transaction OBYZ).

You need to sequence the condition type according to requirement. Please refer section "3.2.4.11.1.2.4 Defining Tax Procedures" of the SAP Best Practices document http://help.sap.com/bp_bl603/BBLibrary/Documentation/102_BB_ConfigGuide_EN_IN.doc

I hope this will be useful.

Regards,

Gaurav

Former Member
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HI

This is not valid forum for this answer. this forum is meant for SAP Business One

Ashish Gupte