(IND) Create a tax setoff rule to settle an excise recoverable amount
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012
Use the Tax setoff rule form to create a tax setoff rule to settle excise recoverable amounts against service tax. When an excise is recoverable, you define the sequence of taxes against which excise recoverable amounts are settled. You then provide the service codes and accounting codes for the service tax if the service tax is part of the tax hierarchy. Microsoft Dynamics AX settles the excise recoverable amount against the service tax payable amount based on the service codes that you select for the setoff rule in one of the following ways:
If you select a service code that has an accounting code assigned to it, the excise recoverable amount is settled against the accounting code.
If you select multiple service codes that have accounting codes assigned to them, the excise recoverable amount is settled against the accounting codes based on the sequence that you define for the service codes in the setoff rule.
If you select a service code that does not have an accounting code assigned to it, the excise recoverable amount is settled against the service code.
Note
This topic does not apply to versions of Microsoft Dynamics AX 2012 prior to cumulative update 6 for AX 2012 R2.
Click General ledger > Setup > Sales tax > India > Tax components.
Create a tax component for excise tax. For more information, see (IND) Set up excise tax components and (IND) Tax components (form).
Click Tax setoff rule to open the Tax setoff rule form, where you can create or update the tax setoff rule for the tax components. For more information, see (IND) Tax setoff rule (form).
In the Setoff component field, select the tax component for service tax.
Click Service code to open the Tax setoff rule form for the setoff component.
Note
The Service code button is available if you select service tax as the tax component.
Create a service code record. The Column field is updated with the order of priority for the service code that is used to set off the original excise tax component.
In the Service code field, select the service code against which the selected excise tax component recoverable amount is set off. The accounting code for the service is updated in the Accounting code field based on the service code that you select. For more information, see (IND) Set up service codes for service goods.
Repeat steps 6 and 7 to set up additional service codes.