Reverser service tax entry in navision 2009

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