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Problem in calculation of GTA.

former_member540914
Active Participant
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In GTA Calculation the service tax has 2 scenarios:

1) Duty to be calculate on 25% of invoice value if the invoice value is more that 1500, in case of common delivery by the freight vendor.

2) Duty to be calculate on 25% of invoice value if the invoice value is more that 2500, in case of Individual delivery by the freight vendor.

Same vendor (Transporter) may be provide common delivery or Individual delivery.

How to handle this scenario in With holding tax.

Regards

Kiran A

Accepted Solutions (1)

Accepted Solutions (1)

saikrishna_vallurupalli
Active Contributor
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Dear Kiran,

If u want to calculate the service tax on 25% of invoice value, you can maintain the 25% at GTA tax code level - Percentage subject to tax under base amount.

As per the act we have to calculate the service tax if the invoice value exceeds the Rs. 1500/-, this also possible, u have to maintain the following area.

SPRO-Financial Accounting (New)-Financial Accounting Basic Settings (New)-Withholding Tax-Extended Withholding Tax-Calculation-Withholding Tax Code-Define Formulas for Calculating Withholding Tax

give the currency,withholding tax type, withholding tax code, country and valid from - save the setting

select the withholding tax type/code line item for GTA and double click on Formulas for calculating withholding tax folder.

give the Rs 1,500/- in To base amount column

then system gets calculated if the invoice value exceeds the 1500/- .

please refer the Note no. 1244301,1242881 for better clarity and also test the result at various levels. I have tested in my development, its working very well.

SAP is supporting very well in this issue, still u have doubts please rise the OSS message.

regards

sai krishna

Answers (1)

Answers (1)

former_member540914
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