| # Tax in Service Tax can be levied on a Service Order and a Service Contract. Service orders A service order is used to execute external service transactions requested by the Business Partner and internal services transactions for the work center. Following are the types of taxes levied on a service order: Excise duties for material. Service tax for material, labor and other additional costs. Sales tax for material and other additional costs. For a service order cost line, an aggregate tax code must be linked and the registration numbers of service department and business partner must be specified. For material cost lines, the excise duties and Assuch sales are applicable, if the item is excisable and the warehouse is excise registered. In the Service Order Estimated Material Costs (tssoc2120m000) session, when you set the Delivery Type to From Warehouse, a warehouse outbound order is created for the material line. Other charges such as handling charges, octroi, packing charges and so on, can be maintained for the material cost lines. For labor and other cost lines, only service tax and sales tax are applicable. You can create a Service order in the Service Orders (tssoc2100m000) session for external services (with Sold -to Business partner) and for internal services (without any business partner). You can also add the additional charges in the Service Order Header Other Charges (tssoc9100m00l) session. For service orders, you must always print excise invoice in warehouse. Service Contracts A service contract is an agreement between a service organization and a customer, to carry out service and maintenance activities for a specific period, according to the agreed conditions and terms. The contract installment terms must be maintained in the Contract Installments (tsctm4100m000) session. Following are the taxes levied on a service contract: Service tax E Cess on service tax SHE Cess on service tax. |