Dear All,
Please let me know how to pass service tax journal entry for reverse and service tax entry and whats set up required to configured for the same in navision 2009 sp1 and navision 2013
Regards,
Vina
Are you talking about reverse service tax mechanism or reverse the existing service tax entry ??
Dear Amol,
For 2013 R2 what is rquirement ?? for doint the same set up…
or else pls know on 2009.
No i am talking about reverse service tax mechanisam.
pls find below example
take legal opinion from advocate- (Ilaw)
Bill amount- Rs.1,000
Advocate cannot charge service tax in invoice
XYZ is li able to pay service tax on Rs.1000
Journal entry
Particulars
Dr/Cr
Amount
Remarks
Legal charges
Dr
1,000
Bill amount booked as expenses
Indlaw
Cr
900
Payable to Ind law after TDS
TDS payable on professional fee
Cr
100
10% TDS on bill amount
Service tax payable
Cr
124
Service tax payable - Rs.1,000 X 12.36%
Legal charges
Dr
62
50% of service tax payble treated as expenses
Service tax input
Dr
62
Company is eligible to take 50% input
as per law
Hi,
It seems its Service Tax Reverse Charge Mechanism.
Its available in AX 2009 as well. I don’t have any idea about Nav
Path : General Ledger → Setup → Sales Tax → Item Sales Tax Group → General Tab where you need to set up basis (PointOfTax / Cash) and reverse charge %.
(Tax ledger posting Groups setup under India folder needs to be checked for Chart of account setup of service tax before setting up Item sales tax group)
Hope this will help you.
Dear shantaram,
Actully m confuse. how sales tax comes in picture…
Regards
Vinayak