Hi Anant,
For Service Tax Reversal Mechanism is already handled in By Design system with tax code 17.
A. Creation of Service Master Data for Service Tax Reversal
Following master data setting needs to be done before starting the transaction:
1. Go to the Product Portfolio work Center
2. Select the Sub View By Services under the view of Products
3. Select your desire Service Master and click on Edit Select the View All Option and select the Tax tab and below you can find Reverse Charge for Service Provider (%) Settings: Define the Percentage paid by the Service Consumer needs to be maintained
B. Tax Rate Settings for Service Tax
You have to create the followings setting below:
1. Go to the Business Configuration work center
2. Then select the Fine Tune activity and find Tax on Goods & Service
3. Then click on View and then select Define Tax Rate Schedules
C. Account Determination for Service Tax
Please follow the below mentioned steps to maintain the required account determination settings:
1. Go to Business Configuration Work center
2. Go to Activity Charts of Accounts, Financial Reporting Structures, Account Determination
3. Select Tax under Account Determination.
4. Select the account determination profile 5. Select Country India
6. Add one row for each of the above tax types and maintain the G/L accounts.( Both for Input & Output tax)
Can you please check this and let me know if you need further details.
Regards,
Harshal