TDS on Service Tax (India Localization)
We are upgrading the system from 11i to R12.
We have an issue with respect to TDS on Service Tax (India Localization), wherein in AP while booking an Invoice we need to deduct TDS on the Total Invoice Value. For example, from Supplier “A” we receive an Invoice with base amount Rs.100 and Service Tax (@10.3%) Rs.10.30 and the Total Invoice value Rs.110.30. In this case we need to deduct TDS @ 10% on the total Invoice value. We have setup TDS at ‘ Vendor Additional Information’ India localization for TDS defaulting from supplier site.
Earlier we have raised a SR for this issue where oracle support executive has explained that in case of 11i release if we want to levy service tax then we need to match the invoice either to PO or to receipt, but In case R12.1 releases we can directly create invoice with service tax without matching PO or Receipt. (SR no. 3-3293155411)