Financials for India - EBS (MOSC)

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Service tax settlement for partial payments

edited Aug 10, 2009 10:44PM in Financials for India - EBS (MOSC) 1 commentAnswered
  Hi,    We are implementing Release 12 Service tax for one of our clients-consider the following scenario

AP invoice - Expense- Rs 1000, Service tax- Rs 100

AP payment- Rs 1100

There is a corresponding AR invoice with service tax for the customer

AR invoice- Revenue- Rs 2000 Service Tax Rs 200 Total- Rs 2200

If we receive the full payment from the customer then the service tax payable is 200-100= Rs 100.

Consider a scenario wherein only part payment is received from customer This being the case is there a flexibility wherein only partial service tax can be paid to the service tax authority during settlement. Or does Oracle impose a restriction that the entire outstanding to the service tax authority has to be paid.

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