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Service Tax payment and return process

Former Member
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Hi experts.

I am implementing service tax functionality for an Indian company. This company is not liable for excise however is required to pay service tax.

I have done the necessary configuration for this requirement like configuring tax procedure TAXINN, creating necessary condition types, account keys activating CIN etc.

All the calculation of taxes is happening properly.

However, I am not clear as to which T code we need to use in order to pay the service tax liability the way we have for withholding Tax i.e. J1INCHLN

Also we can use T code J1IST3 for generating service tax returns. However, is there any report available to view the invoice wise service tax details on the line of J1INEMIS.

Can anyone help me understand the detailed stepwise process from payment to return of service tax in SAP ?

Regards,

Pradnya

Accepted Solutions (0)

Answers (1)

Answers (1)

former_member198650
Active Contributor
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Hi,

Service tax will calculate on invoices in two ways i.e. through withholding tax and sales tax code. If you are organization is non-excise able. Then you have to do configuration through withholding tax. So first create withholding tax type for invoice, create withholding tax code, assign this code to company code and assign accounts to the codes. After that maintain these code in the vendor master. After that when you do invoice posting, select this codes and system will generate payable entry. After that through J1INCHLN you can remit tax.

Regards,

Mukthar

Former Member
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Hi Mukhtar,

Thanks for your reply. However, I want to know whether we have any T code in SAP for remitting service tax to the government? the way we have J1INCHLN for remitting Withholding tax to government..

It would be of great help if you can guide me on this.

Regards,

Pradnya

former_member198650
Active Contributor
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Hi,

The t.code J2IUN is there, but it is applicable only if you are liable to take excise credit.

Regards,

Mukthar

Former Member
0 Kudos

Hello Mukthar,

Thanks for your immediate reply. Can you please tell me which T code to use for service tax remittance in case company is not liable for excise or does not have any excise liability?

Regards,

Pradnya

former_member198650
Active Contributor
0 Kudos

Hi,

You have to use J1INCHLN.

Regards,

Mukthar