(IND) Manually reverse or reclaim service tax

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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

You can manually reverse or reclaim service tax for one or more vendor accounts. Service tax can be reclaimed and reversed for vendor invoices under the following conditions:

  • If a vendor account has open invoices that have been unpaid for more than three months, you can reverse the service tax credit for the invoices.

  • When invoices for a vendor account have been paid, you can reclaim the service tax credit for the invoices.

You can also set up a batch job to reverse or reclaim service tax for one or more vendors. For more information, see (IND) Reverse service tax and (IND) Reclaim service tax.

Prerequisite

Before you can reverse or reclaim service tax, service tax must be enabled. Click General ledger > Setup > General ledger parameters. In the Sales tax area, in the Apply India taxes field group, select the Service tax check box.

Reverse service tax for open invoices

  1. Click General ledger > Periodic > India > Post service tax reversal or reclaim.

  2. In the Select field group, specify the following criteria to identify vendor invoices:

    • Vendor account – To find transactions for a specific vendor, select a vendor account. If this field is blank, all vendor transactions are reversed.

    • Start date – Specify the start date of the period for which to display transactions.

    • Posting date – Specify the posting date of the service tax transactions.

    • Invoice – Select Open invoices.

  3. Click Show data to display open invoices for the vendor. The point of taxation status for the invoice lines that are displayed is Original.

    You can then validate the information and select the invoice lines to include. For more details about the information that is displayed for the invoice lines, see (IND) Vendor invoices with service tax (form).

  4. The Select check box is selected for all invoice lines. Clear this check box to exclude any of the invoice lines.

  5. Click Reverse service tax.

Reclaim service tax for realized invoices

  1. Click General ledger > Periodic > India > Post service tax reversal or reclaim.

  2. In the Select field group, specify the following criteria to identify vendor invoices:

    • Vendor account – To find transactions for a specific vendor, select a vendor account. If this field is blank, all vendor transactions are reclaimed.

    • Start date – Specify the start date of the period for which to display transactions.

    • Posting date – Specify the posting date of the service tax transactions.

    • Invoice – Select Realized invoices.

  3. Click Show data to display realized invoices for the vendor, which are invoices that have been paid. The point of taxation status for the invoice lines that are displayed is Reversed, Partially reversed, or Partially reclaimed.

    You can then validate the information and select the invoice lines to include. For more details about the information that is displayed for the invoice lines, see (IND) Vendor invoices with service tax (form).

  4. The Select check box is selected for all invoice lines. Clear this check box to exclude any of the invoice lines.

  5. Click Reclaim service tax.