Hello Everyone,
Please I need suggestions on below requirement to be implemented in AX 2009.
Below are examples of what GST entries should be reflected once tax code DS or RC is selected, is this possible in standard AX?
1. DS – Deemed Supplies
We will use tax code DS when we give away free goods worth more than INR 500 whereby we deemed to be providing a supply and charge GST to the recipient or to be absorbed by the company.
This means that upon selection of tax code DS the following entry should be made:
Example:
Hamper gift: INR 848 (inclusive 6% GST)
Vendor Invoice entry:
Dr xxxxxxx(Exp) Gifts expense INR 800
Dr xxxxxx01(a/c) Input VAT domestic INR 48
Cr AP – Vendor INR 848
GST entry - Deemed supply (assuming GST charge absorbed by company)
Dr xxxxxxx(Exp) Gifts expense INR 48
Cr xxxxxx02(a/c) Output VAT domestic INR 48
2. RC – Import service reverse charge
We will use tax code RC for services acquired from overseas suppliers. No GST is applicable when supplied by overseas suppliers but under the GST Act, we are required to deem the supply as being supplied by us and received by us as the services are consumed in India.
Therefore, upon selection of tax code RC the following entry should be made:
Example:
Overseas supplier: American tourister
Invoice amount: USD 100 @ INR 6418.44
GST amount: INR 6418.44 x 6% = INR 385.11
Vendor Invoice entry:
Dr XXXXXXX Other consulting service expense INR 6418.44
Cr AP – Vendor INR 6418.44
GST entry – Deemed supply (assuming services supplied by us)
Dr xxxxxx01(a/c) Input VAT domestic INR 385.11
Cr xxxxxx02(a/c) Output VAT domestic INR 385.11
Appreciate your suggestions..!!
Warm regards,
Bhushan
