E1:43: Allow Retainage Control by Tax Authority
(Doc ID 2437949.1)
Last updated on JULY 21, 2020
Applies to:JD Edwards EnterpriseOne Procurement and Subcontract Management - Version 9.2 and later
Information in this document applies to any platform.
In Saskatchewan Canada, the Ministry of Finance states that Provincial Sales Tax (PST) is to be collected on all progress payments - excluding retainage.
Saskatchewan Provincial Sales Tax technically is to be collected on all progress payments, excluding any holdbacks/retainage. That means if a progress payment is $1000 and there is a 10% retainage ($100), Saskatchewan Provincial Sales Tax should be collected on the $1000.
Client requires PST to NOT defer taxes on retainage and requires GST to defer taxes on retainage.
Currently, Processing Option #2. Taxes under Retainage tab of P4314 application allows to either defer all or non of the taxes.
Here are the results required for Saskatchewan:
Gross Amount $1000
Retained Amount $100
Taxable Amount $ 900 (Well, it’s taxable for PST on the $1000, and taxable for the GST on $900)
Tax = $900 x 0.05 (GST) = $45
Tax = $1000 x 0.06 (PST) = $60
Def VAT = $100 x 0.05 (GST) = $5
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