This notification and below mentioned manual action required by customers using country version < INDIA >
Background Information:
The Finance Ministry of India has published a legal notification on 6th November 2015 for a new tax Swacch Bharat Cess to be applicable on all taxable services effective 15th November 2015.
We have released an Emergency Correction for 1508 and 1511 releases to adapt the ByD system and compute the new tax in relevant transactions. However, the customer needs to perform some manual activity so that the new tax is computed correctly in all scenarios.
Affected Customers:
All ByD customers in India
Manual Action:
Yes
Setup the required account determination for the new tax Swacch Bharat Cess in the Business configuration.
16 – Swacch Bharat Cess
39 – Swacch Bharat Cess(Special)
For “Select Country”, choose India.
This setting will ensure that the new taxes are posted to the correct tax accounts.
Current Limitations and Workaround:
a) Limitation 1: For the Down-payment Requests that have been posted before 15th November, if the payment is made on/after 15th November 2015, the Swacch Bharat Cess is not calculated automatically. This is an issue and we will work to analyse and fix the same.
Workaround: You need to reverse the down-payment request and post it with date on/after 15th November. This will ensure that the payment will have the new tax Swacch Bharat Cess.
b) Limitation 2: If Invoice is posted before 15th November 2015 and credit memo is created on/after 15th November 2015, the credit memo document will have the Swacch Bharat Cess tax calculated. We will need to analyse this issue and provide a fix.
Workaround: You have to manually change the tax rate type to “Zero” for tax type “Swacch Bharat Cess”/ “Swacch Bharat Cess(Special)”.
Permanent Fix Availability:
For the permanent fix, Experts on this area are still doing their analysis and arrive at the solution.
Let me know in case you need further information
Thanks
Lokesh Sharma
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