TDS GETTING DEDUCTED WRONGLY FOR A PO MATCHED INVOICE THAT HAS REVERSE CHARGE SERVICE TAXES

(Doc ID 1623375.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Financials for India - Version 12.1.3 to 12.1.3 [Release 12.1]
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 Tax lines after end dating the section in the lookup code JAI_TDS_SECTION_SERVICE

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
a) Create a PO and add below taxes

Item Line : 5000
Tax1(Vat 4%) : 200
Tax2(AddVAt 2%) : 100
TAx3(Normal Service 12%)  :600
Tax4(Reverse Service 12%) :600

b) Create a Invoice matching the PO..

The AP invoice have following dist amt :

5000 basic
100 AddVAt
200 VAT
600 Normal Service
600 SRCM Service +ve line
-600 SRCM Service -ve line

c) TDS should be deducted on 5000+200+100
d) But TDS is getting deducted on (5000+200+100-600) 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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