Service Tax Reverse Charge set ups

Apr 13, 2013 1:24AM

Hi,

Need clarification on followig points with respect to Reverse Charge set ups and processings

1. Should I define the GL account values for Reverse charges for all 3 codes?

                    a. Service Tax-IND
                  b. Service Tax - Education Cess
                  c. Service SH Education Cess

2. Should these codes be defined under Assets or Liability?

3. Should these codes are required for Interim accounts in regime (interim recovery or interim liability) also?

4. Should the 3 tax codes need to be created with check mark as reverse Flag as follows?

                  a. 6% Reverse Charge
                  b. 2% Education Cess for Reverse Charges
                   c. 1% SHE Cess - Reverse Charges

5. should Other normal codes be defined as under?

Financials for India - EBS (MOSC)