Financials for India - EBS (MOSC)

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Service tax with education cess and SH cess

edited Nov 9, 2009 7:42PM in Financials for India - EBS (MOSC) 1 commentAnswered
Hi,

   We have a requirement to apply service tax of 10% on the base amount and edu.cess of 2% and SH cess of 1% on the service tax amount. In AR while applying the taxes(in India localization screens) is it possible to apply 2% and 1% directly on 10% service tax or do we need to define Edu.cess and SH cess of 0.2% and 0.1% respectively . As an example

Base amount- Rs 100

Service tax- Rs 10

Edu.cess= 2%*10=0.2

SH cess=1%*10=0.1

For the last two do we define 0.2% as the tax rate or 2%(if we are able to apply directly on the service tax)

Please let us know.

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