• Registered: 12/18/2013
  • Posts: 1

Topic: Service tax with breakup

Hi,
In india there is a braek up service tax, ( 12.0% service tax, 0.24% education cess,  how to define all three taxes in frontaccouting, some comany ask this breakup in service invoice mandatory.

Thanks

kishan

2 Reply by rosy.swapna (edited by rosy.swapna 11/25/2014 11:44:59 am)

  • Registered: 08/21/2014
  • Posts: 14

Re: Service tax with breakup

Require for my system is,

service tax = service tax 12% of 40% of amount
education cess = 0.24% of service tax
higher education cess = 1% of education cess

how to define the taxable amount for each tax ?


I have service tax 12% for 2150 sales tax .When I add tax type with gl account 2150 sales tax a warning message "Selected GL Accounts cannot be used by another tax type." How resolve this?

  • Registered: 10/02/2016
  • Posts: 7

Re: Service tax with breakup

I am facing the same issue.

rosy.swapna wrote:

Require for my system is,

service tax = service tax 12% of 40% of amount
education cess = 0.24% of service tax
higher education cess = 1% of education cess

how to define the taxable amount for each tax ?


I have service tax 12% for 2150 sales tax .When I add tax type with gl account 2150 sales tax a warning message "Selected GL Accounts cannot be used by another tax type." How resolve this?

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Service tax with breakup

Service Tax (ST): 12% of 40% of Amount = 4.8% of Amount = 4.8%
Education Cess (EC) = 0.24% of Service Tax = 0.24% of 4.8% of Amount = 0.01152%
Higher Education Cess (HEC) = 1% of Education Cess = 0.01 * 0.01152 % of Amount = 0.0001152%
Total tax = 4.8% + 0.01152 % + 0.0001152% = 4.8116352 %

Hence just keep 1 tax at 4.8116352% and pass a JV for the split at the end of each month to split the taxes in the ratio of:
0.002394 : 0.2394 : 0.997582 for HEC : EC: ST
ie., 10: 1000 : 4167

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