Service Tax - Change in ‘POINT OF TAXATION’ rules for determ

dpsingh

Is there any difference in a sale or purchase transaction in case of service tax applied.

mohana_cse06

Welcome to Mibuso.

Did you check release note of MS?

dpsingh

Yes, I have read & installed.

mohana_cse06

read Feature instruction section
there it has mentioned some differences between sales and Purchases..

dpsingh

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.

dpsingh

mohana_cse06 wrote:

read Feature instruction section
there it has mentioned some differences between sales and Purchases..

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

dpsingh wrote:

mohana_cse06 wrote:

read Feature instruction section
there it has mentioned some differences between sales and Purchases..

Is Purchase transaction is O.K . in this release it is passing contra of service tax amount in G/L entry.

mgmutha

Hi,
After uploading PoT HF, you have setup PoT = True in General Ledger Setup.
This setup will help you for auto flagging PoT Field at the time of selection of Structure in Sales/Purchase Header/Journal but it is an editable field and you can remove a check mark from PoT field.

Functionality:
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,
After uploading PoT HF, you have setup PoT = True in General Ledger Setup.
This setup will help you for auto flagging PoT Field at the time of selection of Structure in Sales/Purchase Header/Journal but it is an editable field and you can remove a check mark from PoT field.

Functionality:
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.

thanks for the reply

I have downloaded it from a customer source there is no Purchase header/Vendor ledger entry object updated. there is no such flag in Purchase Header also in case of advance payment it is passing double entry i.e in bank receipt as well as sale Invoice.

from where U have downloded this Tax Update.

mgmutha

Hi,

Can you check whether your Vendor is GTA Vendor, if it is Yes then Service Tax PoT is not applicable to GTA Transaction.

Also you can find below link where you can download service tax pot hf:

https://mbs.microsoft.com/customersourc ... OfTaxIndia

dpsingh

mgmutha wrote:

Hi,

Can you check whether your Vendor is GTA Vendor, if it is Yes then Service Tax PoT is not applicable to GTA Transaction.

Also you can find below link where you can download service tax pot hf:

https://mbs.microsoft.com/customersourc ... OfTaxIndia

Have U installed FP1 + 57061 before installing this PoT tax update. Are U sure there is a flag in purchase header/Sales Header form. Have U applied a bank receipt of advance payment & applied against invoice it is passing double entry of service tax.