Effective date-Service tax

pashya1972

hi

i observed that service tax effective date is calculated based on the posting date and not on document date.
Due to this bills received after effective date but document date of prior to change date is not possible. In such case user has to set date order to off then only it calculates.
I dont know why nav uses posting date instead of document date?...

In case of excise its perfect since it is applicable on realtime basis.

prashant

ssingla

The same problem is faced in Excise also, just assume goods sold from Bangalore to our client in Delhi. It will take atleast a week before the delivery is made and if excise rates changes you will have to modify the setup to allow such transactions.

pashya1972

Yes I agree in case of exxcise. but take a case of service tax wherein recently rates ve been revised wef 25/2/09 to 10% from 12%.

Now the scenerio is Bills may recive after 25th but pertaining to 24th or prior to 24th. In such case service tax shd be charged @ 12% and not 10%.

Nav provides for effective date field but it's workable on posting date and not doc.date. In such case wherein bills are already posted on posting date 28th then it may not be possible to change the posting date if date order is set. we need to then cancell the date order and series may get disturbed.

Prashant

ssingla

By default all system assumes the days activity will be over by the days end. In Indian scenario this become a headache but you need to give the user temporary access to modify the posting groups to do the transaction. I mean temporary and it should be temporary. Despite the fact Indian taxation is complex it does not change more than once in a year. This time there is recession which is unprecedented and it will require special efforts to resolve.

AMITPATO

You can also duplicate all setups as old and have 12% rate. Like GTA to be created as GTAold with rate 12.36%. While in case of fresh transactions use GTA(10%) and for transactions with rate 12% use GTAold.

ssingla

:-#