Service Tax on Accrual Basis wef from 01st April 2011

mgmutha

Hi,

There is a change in Point of Taxation in Service Tax rule (Notification No. 18) i.e. now it is on Accrual basis from 01st April 2011.
1) Can anyone tell how this functionality will be achieved in Nav 2009 SP1 (India Version).
2) What to do the entries which are lying in Service Tax Entry Table.

Thanks in Advance!!

ssingla

Well..... There are no updates in NAV. I don't expect it to come before finance bill is approved. Even after that MS India will take its time to redo the things.

mgmutha

Hi Sandeep,

Thank You for your reply

You have any idea/alternate solution to achieve this functionality, if Microsoft does not provide any fix/release by end of march 2011 as this is major change in navision ? ](*,)

Thanks & Regards,
Manish Mutha

ssingla

This is no major change. May be some 5-6 objects will change.

sanjeevasawale

Hi,

As per my understanding Service Tax on Accrual Basis will work as follow in Navision -

Current Working -
1. When Sales Invoices are posted currently Service Tax goes in Service Tax Payable Account.
2. When Payment is received same amount get transfered from Service Tax Payable Account to Service Tax Realized Account.

Solution / How it should work -
1. When Sales Invoices are posted Service Tax will go in Service Tax Realized Account.
We have to change Setup.

2. Since there will not be Service Tax while payment this level entry will not appear.
For Point No. 2 we may have to do Customizations.

But here question remains that what will happen to current balance of Service Tax Payable Account. Do we need to transfer on 1st April to Service Tax Realized Account or keep posting contra entries from payable to realized account for Payments against old Invoices.

Thanks & Regards,

Sanjeev Asawale

manjusree

This is for your information.

From: Mohit Vohra [mailto:movohra@microsoft.com]
Sent: Sunday, June 12, 2011 1:36 PM
To: Undisclosed recipients
Subject: FW: New Service Tax Changes effective July 1st, 2011 ( Dynamics NAV)

Dear all,

This is to inform you that “Service Tax – PoT Changes” for Dynamics NAV 2009 SP1 has now been released and following are the partner source / customer source links for the same:

https://mbs.microsoft.com/partnersource ... Stax_India, https://mbs.microsoft.com/customersourc ... Stax_India

This has also been updated in the page – “Overview of Released Regulatory Features for Microsoft Dynamics NAV 2009 SP1 India”


Link: https://mbs.microsoft.com/partnersource ... India11_en


Should you have any specific query on the release details please enter the support incident and subject matter expert will reply.

Regards

mgmutha

Hi,

PoT is released but what about bugs ?????? ](*,)


Try out Multi Line Entries in Purchase Invoice with different dimensions (Structure = Service Tax):
-- Online Application (Apply with Advance Payment where Service Tax is already calculated) with above Invoice -> System does not allow to Post an Invoice.

-- Offline Application (Apply with Advance Payment where service tax is already calculated) with above Invoice -> System does not setoff Service Tax GL Entries and also Service Tax Entry Table is not updated correctly

There are more few bugs...

dpsingh

Have U installed this PoT of service tax.Is there any difference between a purchase or sale transaction in case of service tax applied. In case of raising purchase invoive PoT value remains false and in applying Invoice against payment it is passing contra entry of service tax amount. Is it true ?

dpsingh

Try out Multi Line Entries in Purchase Invoice with different dimensions (Structure = Service Tax):

To resolve this issue U can amend this in Service Tax Management codeunit.

mgmutha

Hi,

dpsingh wrote:

purchase invoive PoT value remains false

Have you place a check on PoT field in General Ledger Setup? If No then do the required setups and also refer to Microsoft Release Note.

mgmutha

dpsingh wrote:

Try out Multi Line Entries in Purchase Invoice with different dimensions (Structure = Service Tax):

To resolve this issue U can amend this in Service Tax Management codeunit.

Hi,
There is not only issues in Multi Line Transaction but there are few more issues like Foreign Currencies Transaction, etc. We have reported these issues to Microsoft and awaiting reply from them......

dpsingh

Have U installed this PoT fob.

It is mentioned that the PoT field value would default to TRUE for all customers / vendors where SERVICE TAX structure is selected on the Order or Invoice.

In case of raising purchase invoice PoT vaue remain false and in applying against payment it is passing contra entry of service tax amount.

In case of sale transation only PoT field remains true but in case of purchase transaction PoT field remains false.

dpsingh

manjusree wrote:

This is for your information.

From: Mohit Vohra [mailto:movohra@microsoft.com]
Sent: Sunday, June 12, 2011 1:36 PM
To: Undisclosed recipients
Subject: FW: New Service Tax Changes effective July 1st, 2011 ( Dynamics NAV)

Dear all,

This is to inform you that “Service Tax – PoT Changes” for Dynamics NAV 2009 SP1 has now been released and following are the partner source / customer source links for the same:

https://mbs.microsoft.com/partnersource ... Stax_India, https://mbs.microsoft.com/customersourc ... Stax_India

This has also been updated in the page – “Overview of Released Regulatory Features for Microsoft Dynamics NAV 2009 SP1 India”


Link: https://mbs.microsoft.com/partnersource ... India11_en


Should you have any specific query on the release details please enter the support incident and subject matter expert will reply.

Regards

Have U installed this PoT fob.

It is mentioned that the PoT field value would default to TRUE for all customers / vendors where SERVICE TAX structure is selected on the Order or Invoice.

In case of raising purchase invoice PoT vaue remain false and in applying against payment it is passing contra entry of service tax amount.

In case of sale transation only PoT field remains true but in case of purchase transaction PoT field remains false.

mgmutha

Hi All,

1) I already uploaded PoT Patch.

2) What i have mentioned earlier is that after uploading PoT Patch; we have faced lot of issues like multi lines transaction, foreign currency transaction etc. and we have reported these issues to Microsoft.

3) PoT is applicable to both Purchase as well as Sales Transaction. But you can remove PoT flag from Sales Header/Purchase Header/Journals.
a) If you remove PoT flag then system will consider this transaction as normal transaction and liability/input credit will be accounted at the time of Payment/Receipt basis.
b) If PoT flag is True then liability/input credit will be accounted at the time of Transaction.

dpsingh

mgmutha wrote:

Hi All,

1) I already uploaded PoT Patch.

2) What i have mentioned earlier is that after uploading PoT Patch; we have faced lot of issues like multi lines transaction, foreign currency transaction etc. and we have reported these issues to Microsoft.

3) PoT is applicable to both Purchase as well as Sales Transaction. But you can remove PoT flag from Sales Header/Purchase Header/Journals.
a) If you remove PoT flag then system will consider this transaction as normal transaction and liability/input credit will be accounted at the time of Payment/Receipt basis.
b) If PoT flag is True then liability/input credit will be accounted at the time of Transaction.

Have U installed in Nav 2009 SP1. there is no PoT flag in Purchase Header/Sale Header also in case of advance payment it is passing double entry i.e in bank receipt as well as sale Invoice.
Can U confirm me these objects are same as U received.
Type ID Name
Codeunit 12 Gen. Jnl.-Post Line
Codeunit 226 CustEntry-Apply Posted Entries
Codeunit 5986 Serv-Amounts Mgt.
Codeunit 5987 Serv-Posting Journals Mgt.
Codeunit 5988 Serv-Documents Mgt.
Codeunit 16471 Service Tax Management
Codeunit 16507 Service Tax Cr Distribution
Form 39 General Journal
Form 118 General Ledger Setup
Form 255 Cash Receipt Journal
Form 256 Payment Journal
Form 5900 Service Order
Form 5933 Service Invoice
Form 5935 Service Credit Memo
Form 16569 Bank Receipt Voucher
Form 16571 Journal Voucher
Form 16576 Cash Payment Voucher
Form 16577 Bank Payment Voucher
Form 16579 Cash Receipt Voucher
Page 39 General Journal
Page 118 General Ledger Setup
Page 255 Cash Receipt Journal
Page 256 Payment Journal
Page 5900 Service Order
Page 5933 Service Invoice
Page 5935 Service Credit Memo
Page 16569 Bank Receipt Voucher
Page 16571 Journal Voucher
Page 16576 Cash Payment Voucher
Page 16577 Bank Payment Voucher
Page 16579 Cash Receipt Voucher
Table 21 Cust. Ledger Entry
Table 81 Gen. Journal Line
Table 98 General Ledger Setup
Table 5900 Service Header
Table 5902 Service Line
Table 5992 Service Invoice Header
Table 16473 Service Tax Entry
Table 16474 Service Tax Entry Details
Table 16478 Service Tax Buffer
Table 16575 Service Tax Application Online