This article applies to Microsoft Dynamics AX for all regions.

Introduction

This article describes a country-specific update for India that is available for point of taxation in case of associate enterprises in Microsoft Dynamics AX 2009 SP1.

More Information

Point of taxation (POT) was a new regulatory requirement on India service tax, which was introduced in 2011. Compared with previous existing cash basis service tax, "point of taxation" is fundamental described as follows:

Determination of point of taxation - For the purposes of these rules, unless otherwise provided, "point of taxation" shall be:

(a) The time when the invoice for the provided service or to be provided is issued:
If the invoice is not issued within 14 days of the completion of the provision of the service, the point of taxation shall be date of such completion.

(b) in a case, where the person providing the service, receives a payment before the time specified in clause (a), the time, when he receives such payment, to the extent of such payment.

And under reverse charge mechanism, the recipient of the service has been made liable to pay service tax partly or fully. More details about the concept can be found in the business document (link).
As per POT and reverse charge, when an invoice is issued before payment, tax amounts accrue to "interim recoverable" account and "interim payable" account, which will be transferred to recoverable and payable respectively later when invoice is settled with payment or when payment is made to tax authority. However, per the law tax should be paid to tax authority if payment is not made within 6 months. Therefore, the flexibility to accrue payable amount at invoicing for reverse charge scenarios is needed.
One typical practical scenario is associate enterprise. Associate enterprise: an enterprise, which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise is considered as an 'associated enterprise'.
This feature is explicitly to support the flexibility to accrue payable amount at invoicing for reverse charge scenarios is needed. It will affect accounts payable scenarios where service tax reverse charge are applicable including project accounting.
As POT and reverse charge are not integrated with centralized payment, there will be on effect on centralized payment scenarios. In addition, there should be no effect on India withholding tax.

Hotfix information

A supported hotfix is available from Microsoft. There is a "Hotfix download available" section at the top of this Knowledge Base article. If you are encountering an issue downloading, installing this hotfix, or have other technical support questions, contact your partner or, if enrolled in a support plan directly with Microsoft, you can contact technical support for Microsoft Dynamics and create a new support request. To do this, visit the following Microsoft website:

https://mbs.microsoft.com/support/newstart.aspx You can also contact technical support for Microsoft Dynamics by phone using these links for country specific phone numbers. To do this, visit one of the following Microsoft websites:

Partners

https://mbs.microsoft.com/partnersource/support/Customers

https://mbs.microsoft.com/customersource/support/information/SupportInformation/global_support_contacts_eng.htmIn special cases, charges that are ordinarily incurred for support calls may be canceled if a Technical Support Professional for Microsoft Dynamics and related products determines that a specific update will resolve your problem. The usual support costs will apply to any additional support questions and issues that do not qualify for the specific update in question.


Installation information

If you have customizations for one or more of the methods or the tables that are affected by this hotfix, you must apply these changes in a test environment before you apply the hotfix in a production environment.
For more information about how to install this hotfix, click the following article number to view the article in the Microsoft Knowledge Base:

893082 How to install a Microsoft Dynamics AX hotfix

Prerequisites

You must have Microsoft Dynamics AX 2009 Service Pack 1 and KB971935 installed to apply this hotfix.

Restart requirement

You must restart the Application Object Server (AOS) service after you apply the hotfix.

File information

The global version of this hotfix has the file attributes (or later file attributes) that are listed in the following table. The dates and times for these files are listed in Coordinated Universal Time (UTC). When you view the file information, it is converted to local time. To find the difference between UTC and local time, use the Time Zone tab in the Date and Time item in Control Panel.

File name

File version

File size

Date

Time

Platform

Axupdate.exe

Not Applicable

62,112

23-Sep-2014

15:50

x86

Kb3001283-buppi31-cons.cab

Not Applicable

545,035

23-Sep-2014

15:50

Not Applicable

Kb3001283-glp-cons.cab

Not Applicable

2,865,441

23-Sep-2014

15:50

Not Applicable

Kb3001283-syp-cons.cab

Not Applicable

3,903,548

23-Sep-2014

15:50

Not Applicable

Kb3001283bup.xpo

Not Applicable

5,986,671

23-Sep-2014

15:47

Not Applicable

Kb3001283glp.xpo

Not Applicable

33,037,094

23-Sep-2014

15:46

Not Applicable

Metadata.xml

Not Applicable

72

23-Sep-2014

15:46

Not Applicable

Axsetupsp.exe

5.0.1100.45

1,637,032

23-Sep-2014

15:50

x86

Kb3001283.xpo

Not Applicable

52,610,700

23-Sep-2014

15:47

Not Applicable

Metadata.xml

Not Applicable

72

23-Sep-2014

15:47

Not Applicable

Cabextractor.dll

Not Applicable

19,624

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.dll

5.0.1100.9

150,440

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

539,320

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

17,336

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

535,224

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

535,224

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,824

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

535,224

23-Sep-2014

15:52

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,824

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:52

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

539,320

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,824

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

539,320

23-Sep-2014

15:52

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1500.1212

16,320

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

535,224

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,824

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

543,416

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

17,848

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

535,224

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

535,224

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,824

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

535,224

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

547,512

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

18,872

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:51

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

559,800

23-Sep-2014

15:52

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

20,408

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

531,128

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

16,312

26-Jan-2014

15:00

x86

Axsetupsp.resources.dll

5.0.1100.40

527,032

23-Sep-2014

15:50

x86

Microsoft.dynamics.setup.reportingservices.resources.dll

5.0.1000.45

15,800

26-Jan-2014

15:00

x86

Cabextractor.dll

Not Applicable

23,208

23-Sep-2014

15:50

x64

Status

Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.

Note This is a "FAST PUBLISH" article created directly from within the Microsoft support organization. The information contained here in is provided as-is in response to emerging issues. As a result of the speed in making it available, the materials may include typographical errors and may be revised at any time without notice. See Terms of Use for other considerations.

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