Reverse Charge Liability Not Generated For Invoices Older 90 Days Without Payment (Doc ID 2223343.1)

Last updated on JANUARY 19, 2017

Applies to:

Oracle Financials for India - Version 12.2.4 and later
Information in this document applies to any platform.

Symptoms

On : 12.2.4 version, Service Tax Setups - General

ACTUAL BEHAVIOR
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Reverse charge liability not generated for invoices older 90 days without payment

EXPECTED BEHAVIOR
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Reverse charge liability should be generated for invoices older 90 days without payment

STEPS
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The issue can be reproduced at will with the following steps:
1. Reverse service tax liability in case payment not made within 90 days
2 Reverse service tax liability is on payment basis. Hence on payment the liability moves from interim to final.
3 In case the invoice is not paid within 90 days, then we are required to make the reverse service tax payment. Hence liability must move from interim to final in such cases.
4 Later when the payment is made no additional liability to be created as service tax is already paid.
5 No service tax JV is created after running the India - Service Tax Processing

BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue,
The service tax liability is not impacted in GL for the invoices with service tax and not paid till 90 days
As per service tax act the Service tax liability should be generated automatically if the invoice is not paid with in 90 days.

Cause

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