Skip to Content

reverse service tax mechanism

Hi Gurus,

As per Below Screen shot the entry is as follows:

I have configured the reverse service tax mechanism according to the tax code. Everything is going is fine. But the reverse service Tax is deducting the amount from the vendor.

But requirement is, amount should not be deducted. Any help on this is highly appreciated.

Regards,

Ranjith kumar.

Capture.PNG (27.1 kB)
Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

1 Answer

  • Oct 20, 2015 at 04:16 AM

    Hi Rohit,

    I think you have not created a positive tax condition in the tax procedure. Due to this it is deducting from vendor account. Here you have to create a positive tax condition in OBQ1 and later assign the condition in the tax procedure with account key. After that maintain the tax code for the condition in FV11. Then when you post invoice the debit/credit entries will post with same amount.

    Regards,

    Mukthar

    Add comment
    10|10000 characters needed characters exceeded

    • Hi Rohit,

      What are the conditions for service tax positive and service tax negative for reverse charge mechanism and normal service tax charge to vendor? Please share it, I will explain how it maintain in FTXP.

      Regards,

      Mukthar