Service Tax - Wrong Calculation

dynamics_prasanth

Hi,
I have a scenario. I am making a Purchase booking entry for which service tax is calculated.
My G/L entry is

Freight and Carriage Outward Dr
To Foreign Vendor (GTA) a/c

eg: The Amount is USD 1000/- and the exchange rate for the USD is INR 50/-.
Service Tax % is 10, eCess 2% and SHE Cess 1%.

But after entering the Journal entry, when I go for Ctrl+F8, the Service Tax Base Amount is shown as INR 48745 and Service Tax Amount is shown as INR 1219. This is wrong.

Can anybody provide a solution for the same.


Thanks in Advance [-o<

kapil4dynamics

I would suggest first check the date on which u have created the voucher and the date in ur exchange rate table. I mean the date on which u created the voucher what is the exchange rate on that particular day.

ssingla

Check the currency factor on the purchase header

reema

If i understand your query properly .

U have to post Purchase invoice In USD currency at the same time service tax has to caluclate based on Local currency and service tax register should update based on the Local currency.

If u try to post this in USD currency you wont get what you need.

For this Just post that Purchase invoice In LCY currency then system will caluclate that service tax and service tax register will update properly.

But when it comes to Payment Just change the currency code in USD In payment journals and enter the amount in $ change the exchange rate amount based on that date.


I think this is one alternative solution.

ssingla

reema wrote:

If i understand your query properly .

U have to post Purchase invoice In USD currency at the same time service tax has to caluclate based on Local currency and service tax register should update based on the Local currency.

If u try to post this in USD currency you wont get what you need.

For this Just post that Purchase invoice In LCY currency then system will caluclate that service tax and service tax register will update properly.

But when it comes to Payment Just change the currency code in USD In payment journals and enter the amount in $ change the exchange rate amount based on that date.

I think this is one alternative solution.

I wonder this is a right solution because this will kill the multi-currency functionality of NAV

reema

ssingla wrote:

Check the currency factor on the purchase header

Have u posted somewhere else

ssingla wrote:

I wonder this is a right solution because this will kill the multi-currency functionality of NAV

How can you tell this will Kill multicurrency functionality.

If you think like that then raise the issue to MS , because they failed to provide the solution what he is asking.

ssingla

reema wrote:

ssingla wrote:
Check the currency factor on the purchase header


Have u posted somewhere else

I know where I am posting.

reema wrote:

ssingla wrote:
I wonder this is a right solution because this will kill the multi-currency functionality of NAV


How can you tell this will Kill multicurrency functionality.

If you think like that then raise the issue to MS , because they failed to provide the solution what he is asking.

We haven't reached the solution and you are telling the original poster to break away from standard NAV and follow the no-where path. Do you call it a standard solution? You should evaluate and then post something here [-X
If a bug/product suggestion comes out of it, I will definitely like the original poster to take the honour of reporting it to MS and if he is unwilling/unable only then I will do it. There is long way before we can determine it as a bug/product suggestion. Further the poster has not mentioned that MS has not responded to the query, how you are able to claim that :-k

ssingla

dynamics_prasanth wrote:

Hi,
I have a scenario. I am making a Purchase booking entry for which service tax is calculated.
My G/L entry is

Freight and Carriage Outward Dr
To Foreign Vendor (GTA) a/c

eg: The Amount is USD 1000/- and the exchange rate for the USD is INR 50/-.
Service Tax % is 10, eCess 2% and SHE Cess 1%.

But after entering the Journal entry, when I go for Ctrl+F8, the Service Tax Base Amount is shown as INR 48745 and Service Tax Amount is shown as INR 1219. This is wrong.

Can anybody provide a solution for the same.


Thanks in Advance [-o<

I would recommend you to use Purchase Invoice option for correct calculations.