Retention on Sales Tax Credit Availed

hungryandfool

Hi Experts,

I have a query elated to retention on Sales Tax credit availed.
My current client has certain materials on which he will be able to take only certain portion of credit while making the payment for the sales tax to the authorities i.e. the other portin will be retained.

E.g.
Purchase:
Item Qty. 1 and Rate 1000 and Sales Tax at 5%
So,
Line Amount 1000 , Sales Tax(4%) 40 , Total Amount 1040

Now,
He won't be able to take credit for entire Rs. 40, but he will be able to take credit of Rs. 20 (If the retention is 50%).

Please advice me how to tackle the above situation.

udayrmer

Yes you can do it.

In "Tax Details" form Define for such material "VAT Retention Limit % on ITC".

I had tried it is working as per your need.

hungryandfool

udayrmer wrote:

Yes you can do it.

In "Tax Details" form Define for such material "VAT Retention Limit % on ITC".

I had tried it is working as per your need.

Hi udayrmer,

Thanks for your reply.

But can you tell me from which screen we can avail the credit for sales tax in NAV.
Excuse me for asking such a basic question. :oops:

udayrmer

In Finance Dept --> Setup --> Sales Tax --> Tax Details

hungryandfool

Can someone please elaborate what exactly the figure provided in "VAT Retention Limit % on ITC" will do.

Please excuse me, but I tried with few test entries but it gives me confusing results.

Thanks