Calculate tax in Vendor Down Payment

[Former Member]

Hi,

While posting down payment to my service vendor including service tax amount in F-48 after tick the calculate tax also, it is not asking for tax code and it is not showing service tax seperately. Only vendor a/c and bank a/c's are simulating. Please tell me how to calculate tax while doing vendor down payment.

Regards,

Prasad

[Former Member]

Hi,

Service tax is calculated and deducted from the invoice of service and not on Advance payment.

On Advance payment, there will be basic tax, surcharge, education cess and / or secondary higher education cess.

Hope this helps, if yes, please assign points.

Regards,

Harish

[Former Member]

Hi,

Thanx for ur reply, every month we are paying through advance payment for internet connection including service tax and this is fixed amount.

Regards,

Prasad

[Former Member]

> Hi,

>

> Thanx for ur reply, every month we are paying through

> advance payment for internet connection including

> service tax and this is fixed amount.

1. Enter vendor down payment - gross amount (do not calculate tax)

2. Post a recurring document to your vendor account which will include the lines:

C Vendor

D Internet charge expense account

D tax

3. Allocate invoice with down payment

[Former Member]

Hi,

Small change in the accounting:

Dr. Expense

Cr. Withholding Tax

Cr. Vendor

If the service tax is modvateable, then the entry will be as follows:

Dr. Expense

Dr. Service Tax (Modvat)

Cr. Withholding Tax

Cr. Vendor

Hope this helps, if yes, please assign points.

Regards,

Harish