Assigning Tax Percentages to Service Categories

Access the Service Category Code Detail form.

Service Category Code

Enter a UDC corresponding to the category code that you defined using the Item Attributes/Category Codes Mapping program for the attribute ST for Service Tax. For example, if the service is categorized using category code 7, the system validates the value in this field by using the UDC 41/07.

Percentage Service Provider

Enter the percentage of tax that the service provider must pay for a service category code.

If you enter a value in the Percentage Service Receiver field, the system automatically assigns a value in this field to sum up the values in this field and the Percentage Service Receiver field to 100.

Percentage Service Receiver

Enter the percentage of tax that the service receiver must pay for a service category code.

If you enter a value in the Percentage Service Provider field, the system automatically assigns a value in this field to sum up the values in this field and the Percentage Service Provider field to 100.

Effective Date

Enter the date from which the assigned percentages are effective.

Service Tax

Enter a value that identifies the percentage of service tax that should be assessed or paid to the corresponding tax authority. You must enter the percentage as a whole number and not in decimals. For example, to specify 7 percent, you must enter 7, and not .07.

Education CESS

Enter a value that identifies the percentage of education cess that should be assessed or paid to the corresponding tax authority. The system calculates Education CESS as a rate on the value of service tax. You must enter the percentage as a whole number and not in decimals. For example, to specify 2 percent of service tax, you must enter 2, and not .02.

HCESS

Enter a value that identifies the percentage of higher education cess that should be assessed or paid to the corresponding tax authority. The system calculates HCESS as a rate on the value of service tax. You must enter the percentage as a whole number and not in decimals. For example, to specify 1 percent of service tax, you must enter 1, and not .01.

Note: (Release 9.2 Update) In the Credit Distribution - Excise program (P75I012) and the Service Payments program (P75I013), if you select the Education Cess (CESS) tax type or the Higher Education Cess (HCESS) tax type, the credit distribution does not happen in the Services, Raw Material, and Capital Goods tab. The CESS and HCESS tax types are removed as part of the budget; therefore, you must not add these tax types.

Swachh Bharat Cess (Release 9.2 Update)

Enter a value that identifies the percentage of Swachh Bharat Cess (SBC) that should be assessed or paid to the corresponding tax authority. The system calculates SBC as a rate on the value of taxable amount. You must enter the percentage as a whole number and not in decimals. For example, to specify 7 percent of SBC, you must enter 7 and not 0.07.

Krishi Kalyan Cess (Release 9.2 Update)

Enter a value that identifies the percentage of Krishi Kalyan Cess (KKC) that should be assessed or paid to the corresponding tax authority. You must enter the percentage as a whole number and not in decimals. For example, to specify 7 percent of KKC, you must enter 7 and not 0.07.

G/L Offset

Enter a code that indicates how to locate the tax account for the respective general ledger entry. These fields refer to automatic accounting instructions (AAIs) that in turn refer to the tax account.