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Service Tax Entries for Invoices with Normal and Advance Payments

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Microsoft Dynamics NAV includes the following service tax enhancements:

  • The ability to apply service tax entries for invoices with payments, including service tax for purchase transactions or sales transactions. You can view the created general ledger entries, service tax entries, and service tax detail entries for the applied entries. For more information, see How to: Apply Service Tax Entries.

  • The ability to unapply the applied service tax entries. You can view the service tax entries after they have been modified according to the unapplied entries. For more information, see How to: Unapply Service Tax Entries.

  • The ability to reverse service tax entries for purchase transactions or sales transactions that have been posted from journals. You can view the service tax entries after they have been modified according to the reversed entries. For more information, see How to: Reverse Service Tax Entries.

Service Tax Entries

You can apply, unapply, or reverse the service tax entries for the following transactions:

  • Purchase invoices or sales invoices with normal payment.

  • Purchase invoices or sales invoices with advance payment. For more information about calculation and application of service tax entries for invoices with advance payment, see How to: Calculate and Apply Service Tax on Advance Payments.

  • Purchase orders or sales orders with service tax on advance payment, when the orders have an alternate service tax group.

  • Purchase orders or sales orders with service tax on advance payment, when the orders have an alternate service tax registration number.

  • Purchase orders or sales orders with two lines; one with a service tax group, and one without a service tax group. Both lines are for normal partial payments.

  • Purchase credit memos without service tax.

  • Invoices with payments, if the Tax Deducted at Source (TDS) was deducted when the invoice was created.

When you apply, unapply, or reverse service tax entries, the general ledger entries that are related to the service tax are created without rounding the service tax amount if the following details have been defined in the general ledger setup:

  • The Service Tax Rounding Precision is .01, the Service Tax Rounding Type is Nearest, and the invoice payment is made in a single term. For more information, see General Ledger Setup Table.

  • The Service Tax Rounding Precision is 1, the Service Tax Rounding Type is Nearest, and a partial amount has been received.

See Also

Tasks

How to: Calculate and Apply Service Tax on Advance Payments
How to: Apply Service Tax Entries
How to: Unapply Service Tax Entries
How to: Reverse Service Tax Entries

Concepts

Service Tax Overview

Other Resources

Applying Customer Ledger Entries
Applying Vendor Ledger Entries
Unapply Applied Customer or Vendor Ledger Entries
General Ledger Setup Table
G/L Entry Table
Service Tax Entry Table
Service Tax Entry Details Table