Service Tax registration verification for Vendor

[vikas_sehra2]

Dear All,

We have a requirement :

Say Vendor is registered to take input for 4 service categories, but invoice is received for any other category or say the 5th category for which we are not authorized to take service tax input. Than in such case system should check for service tax registration and system should not allow to post invoice(with reference to purchase order or without purchase order) for the  the non registered service tax.

Kindly let me know how to fulfill the business requirement.

Regards

Vikas Sehra

[former_member198650 · Accepted solution]

Hi Vikas,

You can achieve this by defining validation. Have you created a service tax codes as TDS codes or Tax codes? If you have defined any one of it, then you have to check this tax code with the vendor. If the invoice does not have any one of the code, then it will throw error message. I have summarised the above for define validation in below:

Prerequisite : Vendor list create as a set

Check : Withholding tax code or sales tax codes

Message: Error

Regards,

Mukthar

[vikas_sehra2 · Accepted solution]

Dear Mukthar,

Thanks for the revert.

We are also working for a similar validation. But in this case we have to create 125 tax codes as per the service categories.

Issue:

1. Is this the best practice to create so many tax codes.

2. Is there any alternative which can help us to create 125 tax codes.

Regards,

Vikas

[former_member198650 · Accepted solution]

Hi Vikas,

May I know the reason for creating 125 tax code? Are there different tax rates?

Regards,

Mukthar