Service Tax Settlement

Service Tax Processing – Settlement Process

Navigation: India Localization à India TCS/VAT/Service Tax/FBT à Period End à Settlement

Prerequisites:

1. Service Tax Code available

2. Service Tax Category Created

3. Service Tax Category attached to the PO / Standalone AP Invoice / Projects / Standalone AR Invoice

4. Create Accounting done for AP/AR Invoices

5. Entries Transferred GL and posted

6. Payments / Receipts entered and Accounted

7. Payments / Receipts transferred to GL and posted

· Select Regime as “Service Tax”

· Select Registration No : click on the LoV, the registration comes automatically

· Select Organization: STPI(1) OR STPI(2) OR SEZ(1)

· Provide Settlement Date for the date the settlement to be done

· Click on “Get Details”

Click “Process” to process the settlement. Based on the balance on the debit side, System will generate an AP invoice payable to Service Tax Authority automatically.

Under Payment Details:

· Payment Amount: Amount generated automatically out of processing (The amount needs to be as same as payable)

· Authority: Only Service Tax Authority will be listed to select

· Authority Site: Based on the Organization for which the process is done

· Challan No: Optionally you can provide Challan No so to track in AP easily

· Challan Date: Optional (Invoice date)

Click “Cancel” to cancel the settlement process if you have just logged into take a note on the settlement status (balance on the recovery and liability side)