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Tax payment dme file India

Mar 20, 2017 at 05:37 AM

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F110 Tax Payment to the tax authorities in India - We want to configure tax payment through DME File for different tax types like Service Tax, Excise Duty, Vat / State Tax, Central Tax etc., by transferring the payment file to our Bank and the bank would in turn make a payment to the govt. authorities on our behalf.

To achieve the tax payment to different authorities through a DME File transfer - 1. do we configure each of the statutory authorities as a vendor so that the respective vendors are paid through F110. 2. Do the end users need to compile and pass a lump-sum entry to be payable to the respective tax authorities before running F110.

Example: when the service tax payable is Rs.2800/- of 9 different vendors for the month of Jan 2017;

the normal entry would be - Service Tax Payable - DR 2800 To Cash/Bank 2800

However, through F110 do we need to have the entries as following: Pass a manual entry for the total amount

2 a. Service Tax Payable - DR 2800 To Vendor 123 (Service Tax Authority created as Vendor) - 2800

F110 posting: 2 b. Vendor 123 - DR 2800 To Outgoing Bank A/c - 2800

Or is there a better way of handling the payment to statutory authorities without any manual entry as stated in '2 a' through DME File. Please suggest.

Regards,

Soujanya.

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