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VAT Recovery

Hi All,

Earlier we use to make the payment to suppliers for full value of the bill including VAT amount and buyer use to avail the input VAT benefits accordingly.

Present amendment in VAT insists the buyer only on specific purchases to reocver the VAT portion amount from the total bill amount of supplier, and remit that VAT amount to the government department. Also the buyer will avail the input VAP benefits for the same.

eg. S supplier bill value is Rs.104 inclusive VAT, B buyer will make payment only of Rs.100 to S supplier, and balance of Rs.4 will be remitted to Govt. dept.

From the prospective of finance, is there any provision in SAP B1 to accomodate the said issue.

Regards

N.Narayana Swamy

Former Member
replied

Note: I request you to kindly contact your companies accountant before doing this. Do try this in test system only.

You can try using tax combination that suites this requirement. You can see how BED + VAT tax combination created to understand better.

The point here is use sign for Special VAT (to credit) in formula.

Please note once you create this combination, AP Invoice may be posted to 100 INR but tax ledgers will be debited and credited for equal amounts.

Hope the information is helpful.

Thanks & Regards

Satish

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