TDS Is Calculated Even On the Service Tax Distributions Of Payables Invoice - Service Tax Code is Defined as an Inclusive Tax

(Doc ID 2126557.1)

Last updated on MARCH 08, 2017

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, Tax Deducted at Source-Payables

ACTUAL BEHAVIOR
---------------
TDS invoice generation is considering even Service tax distributions in AP invoice.
User is using the 'Inclusive tax' Service tax definition.

EXPECTED BEHAVIOR
-----------------------
TDS invoice generation should not consider the service tax distribution lines in AP invoice.

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. (N)->India Local Payables.
2. Create an AP invoice, attach an 'Inclusive tax' service tax code.
3. Validate the invoice.
4. Observe that the TDS is getting calculated even on the service tax component of the invoice amount.

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users cannot process the Payables Invoice.

Cause

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