Step by Step Reverse Service tax Mechanism Documentation

...Previous

(25:75) Manpower Supply Services & Security Supply Agencies Services).  

Case:3(25:75)

Where Vendor is registered under Service Tax , then Vendor will raise an Invoice for works done of  Rs. 10,000/-  + plus Service Tax  @3.09% (25%)  only and  we have to pay balance @9.27% (75%) to the Service Tax Department.  

( If  any Subcontractor is claiming / charging Service Tax @12.36%  then we have to pay Sub-Contractor Service Tax to the extent @3.09% only and not @12.36% )  

G1- Basic  S.tax TDS

E1- Ecess on S.tax TDS

S1- Hcess  On S. Tax TDS.  

1.     The above codes are automatically picked from vendor master. Before post invoice, pls check above codes in withhold tax tab & add the basis job work charges amount with G1, E1 & S1 codes.

2.     If  you are not found the above codes(G1, E1 & S1) in WHT tab,then pls contact to Mr.XXXXXX  to update the vendor master.

3.     If you are not add base amount above code in WHT tab, then system wouldn’t calculate correct  amount

4.     Service tax code should be T2only (Rate 3.09%  create tax code  in A/P side ,MM module)  

Case:4(0:75)

Where Vendor is not registered under Service Tax due to what so ever reason , Then Vendor raise Invoice for works done of  Rs.  10000/-  Then we will pay to the  Sub- contractor only Rs. 10,000/- But we have to pay Service tax on reverse charge basis  @9.27% (75%) to the Service Tax Department.

G1- Basic  S.tax TDS

E1- Ecess on S.tax TDS

S1- Hcess  On S. Tax TDS.

  1. The above codes are automatically picked from vendor master. Before post invoice, pls check above codes in withhold tax tab & add the basis job work charges amount with G1, E1 & S1 codes.
  2. If  you are not found the above codes(G1, E1 & S1) in WHT tab,then pls contact to Mr.XXXXX to update the vendor master.
  3. If you are not add base amount above code in WHT tab, then system wouldn’t calculate correct  amount
  4. Service tax code should be  zero tax ( choose V0 only)

3. COMPOITE JOB SERVICE TAX (WITH OUT BREACK of MATERIAL & SUPPLY or installation)  

Case:5(VAT not applicable)

Where Vendor is registered under Service Tax , then Vendor will raise an Invoice for works done of  Rs. 10,000/-  + plus Service Tax  @2.472 %(50%)  only and  we have to pay balance @2.472% (50%) to the Service Tax Department.

( If  any Subcontractor is claiming / charging Service Tax @4.944%  then we have to pay Sub-Contractor Service Tax to the extent @2.472% only and not @4.944% )  

G2- Basic  S.tax TDS

E2- Ecess on S.tax TDS

S2- Hcess  On S. Tax TDS.  

  1. The above codes are automatically picked from vendor master. Before post invoice, pls check above codes in withhold tax tab & add the basis job work charges amount with G2, E2 & S2 codes.
  2. If  you are not found the above codes(G2, E2 & S2) in WHT tab,then pls contact to Mr.xxxxxl to update the vendor master.
  3. If you are not add base amount above code in WHT tab, then system wouldn’t calculate correct  amount

Click here to continue...


 Please send us your feedback/suggestions at webmaster@SAPFunctional.COM 

HomeContribute About Us Privacy Terms Of Use • Disclaimer • SafeCompanies: Advertise on SAPFunctional.COM | Post JobContact Us  

Graphic Design by Round the Bend Wizards

footer image footer image