Howdy, Stranger!
Categories
- All Categories
- 73 General
- 73 Announcements
- 66.6K Microsoft Dynamics NAV
- 18.7K NAV Three Tier
- 38.4K NAV/Navision Classic Client
- 3.6K Navision Attain
- 2.4K Navision Financials
- 115 Navision DOS
- 854 Navision e-Commerce
- 1K NAV Tips & Tricks
- 772 NAV Dutch speaking only
- 615 NAV Courses, Exams & Certification
- 2K Microsoft Dynamics-Other
- 1.5K Dynamics AX
- 309 Dynamics CRM
- 109 Dynamics GP
- 10 Dynamics SL
- 1.5K Other
- 993 SQL General
- 384 SQL Performance
- 34 SQL Tips & Tricks
- 34 Design Patterns (General & Best Practices)
- Architectural Patterns
- 10 Design Patterns
- 5 Implementation Patterns
- 53 3rd Party Products, Services & Events
- 1.7K General
- 1.1K General Chat
- 1.6K Website
- 79 Testing
- 1.2K Download section
- 23 How Tos section
- 260 Feedback
- 12 NAV TechDays 2013 Sessions
- 13 NAV TechDays 2012 Sessions
Calculation Problem in Service tax Payment
AKHIL
Member Posts: 22
Hi Experts,
I faced a problem at the time of Vendor payment(Service tax) like below.
I posted One Purchase Invioce include TDS & Service tax.( Include Tds Base calucation check mark is there in Structure Card).
Advertisement amount is 25,000
In Purchase Invioce Statistics is below
TDS amount - 568.05
Service tax amount -2,575
Total amount is - 27,007.
Posted Entries are
Vendor A/C...........-27,007.00 Cr
TDS A/C...............-568.05 Cr
Service tax Intriem A/C......2,575.00 Dr
Advertisement A/C..........25,000.00 Dr
Rounding A/C................0.05 Dr
But at the time of payment aganist this Invioce(Applied total Invioce)
Posted Entries are like.
Bank A/C .........................-27,007.00 Cr
Service tax Intriem A/C........-2,521.96 Cr
Service Tax Credit Receivable..2,521.96Dr
Vendor A/C.........................27,007.00Dr
The Problem is
Service tax Intriem A/C......2,575.00 Dr (At the time of Invioce Posted Entry)
Service tax Intriem A/C........-2,521.96 Cr (At the time of Payment Entry
The differance amount between two entries is 54 Rs.
Suggest me how to slove this problem.
Regards,
Akhil.
I faced a problem at the time of Vendor payment(Service tax) like below.
I posted One Purchase Invioce include TDS & Service tax.( Include Tds Base calucation check mark is there in Structure Card).
Advertisement amount is 25,000
In Purchase Invioce Statistics is below
TDS amount - 568.05
Service tax amount -2,575
Total amount is - 27,007.
Posted Entries are
Vendor A/C...........-27,007.00 Cr
TDS A/C...............-568.05 Cr
Service tax Intriem A/C......2,575.00 Dr
Advertisement A/C..........25,000.00 Dr
Rounding A/C................0.05 Dr
But at the time of payment aganist this Invioce(Applied total Invioce)
Posted Entries are like.
Bank A/C .........................-27,007.00 Cr
Service tax Intriem A/C........-2,521.96 Cr
Service Tax Credit Receivable..2,521.96Dr
Vendor A/C.........................27,007.00Dr
The Problem is
Service tax Intriem A/C......2,575.00 Dr (At the time of Invioce Posted Entry)
Service tax Intriem A/C........-2,521.96 Cr (At the time of Payment Entry
The differance amount between two entries is 54 Rs.
Suggest me how to slove this problem.
Regards,
Akhil.
0
Comments
The diffrence comes due to the TDS amount.
http://ssdynamics.co.in
but 4.0 sp3 it is working perfectly,in 5.0 sp1 we get a difference amount.
regards
akhil
The reason for the difference in the service tax amount is becuase of the calculation, i.e. at the time of invoice, the service tax is being calculated on the invoice amount and then TDS is deducted, whereas during the payment, the TDS is deducted first and then service tax is calculated.
As per the Indian Statutory requirement, the payment calculation is correct but unforunately all the companies follow the invoice calculation, which according to me is incorrect.
Calculation for your reference purpose:
Invoice
Invoice Amount - 25,000
Service Tax (10.3%) -2575
TDS (2.06%) on 27,575 - 568.05
Total Amount - 27007
Payment
Invoice AMount - 25,000
TDS (2.06%) on 25,000 - 515
Service Tax on 24485 - 2521.96