Can Service Tax component be revalued during Exchange Adjust

SarDee
SarDee Member Posts: 6
edited 2009-05-13 in NAV/Navision Classic Client
Can service Tax component be revalued during Exchange Adjust Batch Job.
Sales Invoice is raised in Foreign currency having the service tax component then there is fluctuation in Exchange rate in order to incorporate variation in Exchange rate we have to run adjust exchange rate batch job. In this case can service tax component be revalued or not?????? :-k :-k :-k

Thanx in advance
"In a day, when you don’t come across problems , you can be sure that you are traveling in a wrong path"

Comments

  • ssingla
    ssingla Member Posts: 2,973
    The liability of Service Tax being recorded and payable in Indian currency which is LCY and therefore need not be adjusted. So the service tax payable account will not be adjusted.

    For the customer balance : If the amount due from customer includes service tax amount and that amount will be recoverable in Foreign Currency, the complete amount will be adjusted.

    The important point is that you are not adjusting service tax component but your foreign currency asset (receivable) which has undergone some change in value due to exchange fluctuation.
    CA Sandeep Singla
    http://ssdynamics.co.in

Categories