Service Tax Amendmends

Dynamics 365 Business Central/NAV User Forum
1

Hi,

I am from India and there is a change in Service Tax rules.

Now on few services service receiver ( on behalf of service provider) as well as service provider is required to pay service tax.

Split of liability may be 25:75 or 50:50.

Can anyone tell me whether Microsoft has issued any updates for this issue.?!

Thanks,

Jainal Shah

2

In Service tax setup there is field called as Abatement% where you need to define the percentage. i.e 75%

It will take care.

3

I think Amol suggestion would work , but i have not tried.

Regarding the service tax change , MS has not released yet any patch .

4

Hi,

I am not talking about “Abatement” rather talking about “responsibility” to pay tax to government.

In GTA case, abatement gives me value of service tax and then it is the responsibility of service receiver to pay such service tax to Government on Service Provider’s behalf.

I am talking about amendment in Service Tax rules which states that for few services Service Provider as well service receiver are liable to pay service tax. And ratio of such liability will be 25:75 or 50:50.

So can anyone tell me whether Microsoft has issued any updates for this issue.?!

Thanks,

Jainal

5

For this you have put GTA service type as Inward GTA

and Put Consignment Note No

On Purchase order

This will take care of your 25:75 scenario

6

Inward GTA will hit service tax receivable and Outward GTA will be expensed out.

Repeating that I am not talking about abatement.!!

Whatever service tax value which I am getting that 100 % required to be paid by service receiver on behalf of service provider.

I am putting scenario where if service tax liability comes to 1,000 Rs then 250 Rs required to be paid by service provider and 750 Rs will be paid by service tax receiver.

You can refer this notification - Notification No. 30/2012-Service Tax

Thanks,

Jainal

7

No MS has not released any patch for this as I believe this is released by Government recently.

8

Hi All,

Does any one have any update on this “Reverse Charge Mechanism” in Service tax amendment for NAV.?

This is released for AX 2009.

Thanks,

Jainal

9

No Microsoft not yet released the Patch for the same. We are also waiting for the same. Specially 25:75 and 50:50 split of Service tax.

10

Well Jainal,

I don’t think it’s very clear if your question is about NAV or AX? You posted to the NAV forum (originally - but moved to Indian forum as Service Tax is unique Indian functionality) but tagged the post with AX?

11

Hi All,

It seems that customization of this has been postponed and not sure when this gonna be available.

Does any one have developed anything for reverse charge mechanism in service tax amendment.?

Regards,

Jainal

12

Hi!,

Seems microsoft has released a patch. The attached PDF shows the changes made.

Regards…

Implementation of Service Tax Reverse Charge Mechanism IN Microsoft Dynamics AX 2009Hi

6562.Service tax reverse charge mechanism_whitepaper.pdf (630 KB)

13

What will happen if we put amendment % on the service tax group for n

14

What will happen if we enter amendment % in the service tax group field for non GTA services ?

15

Hi,

Patch has been made available for AX and not for NAV.

Not sure when this gonna available for NAV.

And for abatement field, plz find one my above reply.

Thanks,

Jainal

16

Lets take your example of Rs.1000/- Service Tax Liab.

You would be paying Rs. 750/- ,i suppose as you are the receiver, so you need not take care of Rs.250/- as it would be paid by the provider.

And every time you receive the service of same service provider you would be paying 75% of the amount.

So if i put 25% amendmend in that particular service provider group, NAV will calculate Rs.750/-, which i have to pay.

And that is what you want or am i missing some thing or the other which NAV would not give with the above scenario.

17

finally phase I is released…

Tracking URLs:

https://mbs.microsoft.com/partnersource/support/selfsupport/taxupdates/MSDNAV2009Sp1Stax_India

https://mbs.microsoft.com/customersource/downloads/taxupdates/MSDNAV2009Sp1Stax_India

Overview Pages:

https://mbs.microsoft.com/partnersource/support/selfsupport/taxupdates/msdyn_suppregfeaturesnav09india11_en.htm

https://mbs.microsoft.com/customersource/support/downloads/taxupdates/msdyn_suppregfeaturesnav09india11_en.htm

18

Reverse charge mechanism for service tax, hot fix is released for Microsoft Dynamics NAV.

please see the customersource or partnersource.

19

Dear Jainal,

Now the service tax reverse charge hotfix available for NAV. Please search in partner source and download it. the hot fix is released for 2009 SP1. the download link is given below:

https://mbs.microsoft.com/customersource/downloads/taxupdates/msdnav2009sp1stax_india.htm?printpage=false&sid=qofeqwcqnifpard4ijybymod&stext=service%20tax%20reverse

20

Dear Jainal,

the service tax reverse charge hot fix is now available on partner source. the download link is given below:

https://mbs.microsoft.com/customersource/downloads/taxupdates/msdnav2009sp1stax_india.htm?printpage=false&sid=qofeqwcqnifpard4ijybymod&stext=service%20tax%20reverse