(IND) About setting up service tax settlements
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2
The service tax that is paid for input services is accumulated in the service tax recoverable accounts. The amounts of service tax that are calculated for the sales cycle are accumulated in the service tax payable accounts. The difference between the amounts in the recoverable accounts and the amounts in the payable accounts determines the amount of service tax that must be paid to the authorities.
You can make a pre-adjustment before you settle the tax with the service tax authority.
A service provider can use the service tax recoverable amount to pay the service tax payable amount. The excise recoverable amount can be used to pay the service tax payable amount.
A manufacturer can use the service tax recoverable amount to pay the excise payable amount.
Before you make the payment to the service tax authority, the service tax can be claimed against the excise duty, according to the setup in the Tax setoff rule form.
Service tax transactions in the Settle bill of exchange journal
When you post transactions in the Journal voucher form, the tax amounts are credited to the tax payable accounts.