Deprecated: (IND) Tax adjustment for Direct Tax (TDS/TCS)

Updated: October 24, 2013

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

In Microsoft Dynamics AX 2009, the tax adjustment functionality lets users select specific transactions and change the Tax Deducted at Source (TDS)/Tax Collected at Source (TCS) group that is applied on the original transaction.



Reason for deprecation

Microsoft Dynamics AX 2012 supports subledger journal and source documents, and therefore streamlines the process for posting financial entries to General ledger. The existing functionality for withholding tax adjustments is a country-specific feature for India. This functionality was deprecated and was replaced by a more flexible journal-based adjustment of withholding tax through the Create withholding tax journal in General ledger.

Replaced by another feature

Yes. Users can still adjust the posted TDS/TCS by using either of the following methods:

  • Adjust tax liability general ledger accounts by using the Create withholding tax journal in General ledger to pass adjustment entries.*

  • Adjust the original source document by using, for example, a credit note.

*This method does not affect the original source document or the distribution entries. This method only adjusts the tax in the TDS/TCS Payable/Recoverable accounts.

  • Users can use the adjustment journal functionality to adjust the posted TDS/TCS amount that is not yet reported to the tax department. The amount can be adjusted either up or down.

  • Users can also link the adjustment entry for the TDS/TCS with the appropriate parent transaction. In this case, the reports net off the overall result to reflect the change in tax liability that corresponds to the specific document.

For more information, see (IND) Create withholding tax journal (form).

Modules affected

General ledger

Changes to installation

This change does not affect application installation.

Changes to upgrade

This change does not affect application upgrade.

Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).