To process service tax in accordance with legal requirements, you must make settings in Customizing for Flexible Real Estate Management
(RE-FX) under as follows:
:
Define Default Service Tax Rates
You can enter a general tax rate that is defined by law/government that the system can use for the communal service tax (TASI) calculation by default. The system applies the default tax rate only if there is no city rate defined in the given city.
Define City Rates
You enter the tax rates for the communal service tax (TASI) calculation that are defined by the cities. If the city rate is zero, or there are no service tax rates defined in a city, the system uses the default service tax rates that the government defines.
Define Payment Installments
You define the due dates (date and month) of the first installment and balance (second installment) payments of the service tax in a given calendar year.
Define Settings for Contract Types
You can make the following settings for contract types:
If you select the Short Term
checkbox, the system always applies the service tax rate that is defined for not rented real estate objects when the service tax is calculated for those real estate objects that are rented, but their contract validity is equal to or less than 6 months in the fiscal year.
If you do not select the checkbox, the system always applies the service tax rate that is defined for rented real estate objects whose contract validity is more than 15 days.
If you must always apply the service tax rate that is defined for not rented real estate objects, select the Not Rented
checkbox. In this case, the system does not consider the contract validity at all when calculating the service tax.
For more information about the Customizing settings, see the Customizing documentation in the system.