Customization for Krishi Kalyan Cess (KK Cess)

Contents
Defining Condition Types .............................................................................................................................. 2
MM (Accounts Payable (A/P)) ................................................................................................................... 2
SD (Accounts Receivable (A/R)) ................................................................................................................ 5
FI (Accounts Receivable (A/R)) .................................................................................................................. 6
Account Keys ................................................................................................................................................. 7
For MM ..................................................................................................................................................... 8
For FI: ........................................................................................................................................................ 9
For SD ........................................................................................................................................................ 9
Tax Procedure ............................................................................................................................................... 9
SD Pricing Procedure................................................................................................................................... 10
Tax code ...................................................................................................................................................... 11
Condition record ......................................................................................................................................... 11
G/L Account Assignment ............................................................................................................................. 12

Defining Condition Types

Create four conditions types JKKP, JKK1, JKK2 and JKKR to handle Krishi Kalyan
Cess (KKCess) on services. KKCess is calculated for taxable services, on the value/cost
of the service.

MM (Accounts Payable (A/P))

Follow the below mentioned steps
Condition types: - Create condition types using the OBYZ transaction.
To do this, choose SAP Customizing Implementation Guide Financial Accounting
(New) Financial Accounting Global Settings (New) Tax on Sales/Purchases Basic
Settings Check Calculation Procedure.
JKKP - IN: AP KK Cess
JKK1 - IN: AP KKC RCM
JKK2 - IN: KKC RCM Offset

SD (Accounts Receivable (A/R))

Follow the below steps

Condition types: - Create condition type JKKR using the V/06 transaction.
To do this, choose SAP Customizing Implementation Guide Sales and Distribution
Basic Functions Pricing Define Condition Types Maintain Condition Types
JKKR: IN: A/R KK Cess

FI (Accounts Receivable (A/R))

Follow the below mentioned steps
Condition types: - Create condition types using the OBYZ transaction.
To do this, choose SAP Customizing Implementation Guide Financial Accounting (New) Financial
Accounting Global Settings (New) Tax on Sales/Purchases Basic Settings Check Calculation
Procedure.
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Account Keys
Tax Account keys for MM and SD:
Create four Tax posting keys as- KP1, KP2, KP3 and KR1.

For MM
Create Tax postings keys KP1, KP2 and KP3 using the transaction OBCN or can use IMG path do this.
Choose SPRO Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases
Basic Settings Check and Change Settings for Tax Processing
KP1: A/P KK Cess Tax
KP2: A/P KKC RCM
KP3: A/P KKC RCM Offset

For FI:
Create Account key KR1 using the transaction OBCN or can use IMG path do this in below IMG path.
Choose SPRO Financial Accounting Financial Accounting Global Settings Tax on Sales/Purchases
Basic Settings Check and Change Settings for Tax Processing

KR1: A/R KK Cess Tax

For SD
Create Account key KR1 in below IMG path.
SPRO Sales and Distribution Basic Functions Account Assignment/Costing Revenue
Account DeterminationDefine and Assign Account Keys Define Account Key
KR1: A/R KK Cess Tax

Tax Procedure
Assign the condition types and Account keys for KKCess and RCM in the tax procedure using transaction
OBYZ (valid for TAXINJ/TAXINN). Assign correct From/To step numbers so that KKCess conditions get
calculated on service cost/service value.

To post KKCess into separate Tax G/L accounts, assign the condition types and respective Account Keys
for KKCess conditions as displayed in the below sample.

NOTE: The FROM step 100 against condition types JKKP, JKK1, JKK2 and JKKR refers to the base value
for Service Tax computation
The FROM steps might vary in your system, please configure the new condition types accordingly.

SD Pricing Procedure
Assign accounting key in SD pricing procedure through the transaction V/08. Assign correct From/To
step numbers so that KKCess conditions get calculated on service cost/service value.

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Tax code
Create the required input tax code using the FTXP transaction for your tax procedure.

Condition record
Create condition records for required condition types using transaction FV11 (Sample given below).

Note: - Customers using withholding tax route for service taxes can refer to SAP Note 1736781,
attachment Legal_change_Service_reverse_charge.docx for customization settings. Setup for Krishi
Kalyan Cess will be similar to the service tax setup. It is to be handled at customer end.

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G/L Account Assignment

Assign required G/L accounts to Account keys KP1, KP2, KP3 and KR1 in OB40 transaction (An example
for Account Key KP2 screenshot is given below, and carryout the same for KP1, KP3 and KR1)

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