Provision for Taxes on Service Recieved

Question

Hi Gurus,
Please tell me the process flow of Provision for taxes on services recieved in withholding tax.
What is configuration required for it and tell me the process with a small example?
Please revert asap.
Thank You

Answer 1

The steps are given below :
Acctg>Fin Acct>AP>Document Entry>Withholding Tax>India>EWT>Provisions for Taxes on Services Received
J1INPR - Enter
Enter the following Values :
Co: Code, Fis Year
Vendor (If any specific Vendor), PO No
Date
Posting Date, Posting Period
Ex. Rate Type
Execute
Enter the Tax Type, Tax Code and Section relevant to Vendor
Save the document.
Assuming that Year end provision calculated and TDS 1,530 for Provision amount for Rs.15,000/-.  The following entry will be shown through SA document after provision entry made through J1INPR.
Cr TDS Payable a/c
Dr TDS Provision a/c -    Post
The remittance to I.T. department as per balance shown  TDS payable a/c u2013 The following entry will be shown through after payment posting.
Cr  Bank a/c
Dr  TDS Payable a/c
TDS Payable a/c cleared for provision related entries.
The relevant Invoice received by next month for TDS Provision and the same has been booked  through Service Entry Sheet and subsequently MIRO using tax codes.
The TDS entry shown in TDS payable a/c is as follows:
Cr  Vendor a/c
Dr  GL or GRIR a/c
Cr  TDS Payable a/c
The credit balance shows in TDS payable a/c for remittance.    This has to reverse the Invoice against TDS provision made through following T.Code: J1INUT
Acctg>Fin Acct>AP>Document Entry>Withholding Tax>India>EWT>Provisions for Taxes on Services Received
J1INUT - Reverse
Run Program in Test Mode "Select a Tick mark"
Enter the following Values :
Co: Code, Fis Year
Posting Date, Posting Period
Execute
To check the entries in test mode and it shows the TDS calculations.   After verification, if it found correct post the document.
The final reversal entry as follows:
Dr TDS payable a/c
Cr TDS provisions a/c
Try the above process through Testing Server.
Revert if you have any doubts.
Regards,
GB