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Service Tax Amendmends

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

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

    It will take care.

     

  • In reply to Amol:

    Amol

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

    It will take care.

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

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

  • 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

  • In reply to Jainal:

    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

  • In reply to Amol:

    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

  • In reply to Jainal:

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

  • In reply to Amol:

    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

  • In reply to Jainal:

    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.

  • In reply to Jainal:

    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?

  • In reply to Erik P. Ernst:

    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 

  • In reply to Jainal:

    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

     

  • In reply to Ax Aspirant:

    What will happen if we put amendment % on the service tax group for n
  • In reply to Manish:

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

  • In reply to Manish:

    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

  • In reply to Jainal:

    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.

     

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