GTA & BA SERVICE TAX

[Former Member]

Hi

How to map the following process in sap

Service tax for Goods transfer on Agency services

For the Purchase of Raw material/capital, interplant transfers, export of FG, re export of materials & transporting FG to customer location if the transport(Delivery/freight charges) is under the Client scope then service tax on goods transfer on agency services payment has to be done by Client.i.e the GTA will paid by the Client with other cesses.

Here Client has to pay the GTA & the other cess to the excise authorities then the same duty credit can be availed.

Classification of GTA services

1. Inward movement of goods(Purchase of goods)

2. Internal movement of goods(Interplant/interplant transfers)

3. Outward movement of goods (Sale of goods) for this credit cannot be availed.

Further classification according to the delivery type

1. Individual delivery by the freight vendor.

In this type 1500 no duties take an example of duty Rs.2500

Duty base amount will be 25% of Rs.2500 = 625

Then duty will be

12% of 655= 75

2% of 75 = 1.5

1% of 1.5 = 0.75

2. Common delivery by the freight vendor.

In this above Rs.1500 no 25% of Rs.1500 = 375

Then duty will be

12% of 375= 45

2% of 45 = 0.9

1% of 0.9 = 0.45

If the freight vendor is service tax registered then it will be an normal input service taxes.

1.Payment of delivery charges to the freight vendor through transaction MIRO.

2.Need from Client is to get part-1 update with following details

1. L.R NO, Vendor name, whether it is individual delivery or common delivery through the system whenever the freight payment .

3.Creating TR6 Challan manually(Expected through the system TR6 Challan generation by Client)

4.Cheqeue generation through FI for TR6 Challan payment.

5.With TR6 Challan & Cheqeue submitted to the excise for payment.

6.Getting the TR6 Challan from the excise/Bank after getting attested or approved for payment of duty.

7.Need by Client during Posting the TR6 Challan in the system (During posting it has to update the Part-2 update with all the details of excise duty breakup

a.GTA

B.Education cess

c. Higher education cess.

Second process

Service Tax on Business Auxiliaries (B.A)

For the services done by the foreign agency or company the service tax liability will be with Client.

1. Service P.O for the foreign agency

2. Serivce entry of the services executed by the agency

3. Payment to the Agency or vendor.

4. Creating TR6 Challan manually (Expected through the system TR6 Challan generation by Client)

5. Cheqeue generation through FI for TR6 Challan payment.

With TR6 Challan & Cheqeue submitted to the excise for payment.

6. Getting the TR6 Challan from the excise/Bank after getting attested or approved for payment of duty.

7. Need by Client during Posting the TR6 Challan in the system (During posting it has to update the Part-2 update

With all the details of excise duty breakup

a.GTA

B.Education cess

c. Higher education cess.

Regards

UMAPATHY.M

[Former Member]

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