TDS SHOULD NOT BE DEDUCTED ON SERVICE TAX AS PER CIRCULAR NO. 1/2014 (Doc ID 1616820.1)

Last updated on AUGUST 22, 2016

Applies to:

Oracle Financials for India - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version

ACTUAL BEHAVIOR
--------------------
TDS is getting computed on the Service tax Reverse Charge lines..

EXPECTED BEHAVIOR
-----------------------
TDS should not get computed on the Reverse Charge Service Tax lines after end dating the section in the lookup code JAI_TDS_SECTION_SERVICE

STEPS
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The issue can be reproduced at will with the following steps:
1. Create a Invoice with Service Tax and Service Tax Revere charge taxes..
2. Based on the Default TDS Section in Supplier additional information the TDS tax id gets populated on all the lines..
3. The section code is being end dated in the JAI_TDS_SECTION_SERVICE
4. Validate the Invoice..
5. TDS is getting deducted on Item lines and Reverse Charge Service tax lines which is wrong

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Wrong TDS is being Deducted which is causing a Statutory Compliance

Cause

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