Ledger Question: Download Questions PDF
Explain Service Tax Entry in SAP?
Answer:
For service provider portion
Expense A/C Dr
Service tax deposit A/C Dr
To Creditor A/C
For Service Receiver portion
First you have to create a service tax payable A/C and a vendor A/C in the name of govt. Then pass the following entries
At the time of booking exp.
For liability creation
1)ST payable A/C dr
To vendor a/c
At the time of payment
For payment
2) vendor a/c dr
To bank a/c
For availment of credit
3) ST deposit a/c dr
To ST payable a/c
(OR) otherwise pass manual entry
ST deposit a/c dr
To bank a/c
Note: st deposit a/c is Input credit a/c
Expense A/C Dr
Service tax deposit A/C Dr
To Creditor A/C
For Service Receiver portion
First you have to create a service tax payable A/C and a vendor A/C in the name of govt. Then pass the following entries
At the time of booking exp.
For liability creation
1)ST payable A/C dr
To vendor a/c
At the time of payment
For payment
2) vendor a/c dr
To bank a/c
For availment of credit
3) ST deposit a/c dr
To ST payable a/c
(OR) otherwise pass manual entry
ST deposit a/c dr
To bank a/c
Note: st deposit a/c is Input credit a/c
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