Customization for Swachh Bharat Cess (SBCess)

CONDITON TYPES

Create four conditions types JSB1, JSB2, JSB3 and JSB4 to handle Swachh Bharat Cess (SBCess) on services. SBCess is calculated for taxable services, on the value/cost of the service.

1. For MM (Accounts Payable(A/P)) follow the below steps:

Condition types: - Create condition types using the OBYZ transaction.To do this, choose SAP Customizing Implementation Guide Financial Accounting (New) Financial Accounting Global Settings (New) Tax on Sales/Purchases Check Calculation Procedure.

JSB1 - IN: A/P SB Service (SBCess A/P)JSB3 - IN: SB ST RCM (SBCess RCM A/P)JSB4 - IN: SB ST RCM offset (SBCess RCM Offset Account)

2. For SD (Accounts Receivable(A/R)) follow the below steps:

Condition types: - Create condition type ‘JSB2’ using the V/06 transaction.To do this, choose SAP Customizing Implementation Guide Sales and Distribution Basic Functions Pricing Define Condition Types Maintain Condition Types

JSB2: IN: A/R SB Service (SBCess A/R)

Account Keys

3. Tax Account keys for MM and SD : -

Create four Tax posting keys as- SB1, SB2, SB3 and SB4.

For MM: Create Tax postings keys SB1, SB3 and SB4 using the transaction OBCN or

can use IMG path do this.

Choose SPRO Financial Accounting Financial Accounting Global Settings Tax

on Sales/Purchases Basic Settings Check and Change Settings for Tax Processing.

SB1: A/P SB Service Tax

SB3: A/P SB ST RCM

SB4: A/P SB ST RCM offset

For SD: Create Account key ‘SB2’ in below IMG path.

SPRO Sales and Distribution Basic Functions Account Assignment/Costing Revenue

Account DeterminationDefine and Assign Account Keys Define Account Key

SB2: A/R SB Service Tax

4. Now assign this account key to all your SD procedure. An example given below in below

IMG path

SPRO Sales and Distribution Basic Functions Account Assignment/Costing

Revenue Account Determination Define And Assign Account Keys Assign

account keys

G/L Account Assignment

5. Assign required G/L accounts to Account keys SB1, SB2,SB3 and SB4 in OB40 transaction (An example for Account Key SB1 screenshot is given below, and carryout the same for SB2, SB3 and SB4 also)

6. If you need to expense-out SBCess, use an existing service tax expense-out Account key (E.g., NVV), as per your business need.

TAX PROCUDURE

7. Assign the condition types and Account keys for SBCess and RCM in the tax procedure

using transaction OBYZ (valid for TAXINJ/TAXINN). Assign correct ‘From’/’To’ step

numbers so that SBCess conditions get calculated on service cost/service value.

Option.1:- If you would like to expense-out SBCess, assign the condition types and

Account key ‘NVV’ for SBCess conditions as displayed in the below sample.

Option.2:- If you would like to post SBCess into separate Tax G/L accounts, assign the condition

types and respective Account Keys for SBCess conditions as displayed in the below sample.

Note: Assign SD condition type ‘JSB2’ and Account key ‘SB2’ in your Tax procedure(TAXINN or TAXINJ)

also. This is require because when you use FI transcations to post customer invoices(e.g., FB70) with

taxes, where you use output tax code, these SD condition type are determined/verified through tax

procedure.

SD PRICING

8. Assign accounting key in SD pricing procedure through the transaction V/08. Assign

correct ‘from’/’To’ step numbers so that SBCess conditions get calculated on service

cost/service value.

9. Tax code: - Create the required input tax code using the FTXP transaction for your tax procedure.

10. Condition record: - Create condition records for required condition types using transaction FV11 (Sample given below).

Note: - Customers using withholding tax route for service taxes can refer to SAP Note 1736781, attachment ‘Legal_change_Service_reverse_charge.docx’ for customization settings. Setup for Swachh bharat Cess will be similar to the service tax setup. It is to be handled at customer end.