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Service tax on freight

Former Member
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Hi Experts

How to configure for calculation of service tax on freight condition?

regards

marias

Accepted Solutions (0)

Answers (2)

Answers (2)

former_member335885
Active Contributor
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HI,

In case if the freight is added on to the material cost then you can have service tax on both the orginal material cost + the frieght cost which is added to the material in the PO itself and then do the invoice.

Thanks & Regards,

Kiran

pankaj_singh9
Active Contributor
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Hi,

If you are using freight as a pricing condition in PO and want to charge Service tax on this so it is not possible at the time of creating PO

Since Service tax gets posted at the time of MIRO, so post it during LIV.

When you select option as "Goods/Services + Planned Delivery Cost" OR "Planned Delivery Cost" in MIRO, then use Tax Code of Service tax for the line item of Freight and system will calculate the Service tax.

Simulate it and Post.