I am using NAV 2009 Indian Database. I have configured whole features of Service tax. Now we have a transaction which has service tax as well as TDS to be deducted.
I have posted the same through Invoice including TDS in the Invoice header only.
Now when i make the payment to vendor after deducting TDS, it takes the Service tax credit for full amount including amount of TDS .
Now here it is wrong, Actually, As per service tax provision, I can take service tax credit only when i have made the payment of respective accounts, I have deducted TDS and not paid still it is transferring full amount of Service tax.
For Example, Rs.100000 + 10.3% Service tax bill = Rs.110300 Invoice value for Professional.
I have to deduct TDS@10% means Rs.11030.
I have posted the above invoice on 01.04.2010.and make the payment of balance to vendor Rs. 99270 on 25.04.2010. When i apply this payment against the invoice it transfer full service tax amount credit instead of Rs.9270
And i make the payment of TDS of Rs.11030 on 03.05.2010, so actually S tax credit of Rs.1030 should now be taken to be utilised.
How to solve this?