India Localization use its own tax engine
for all tax calculations. India
Localization works with one tax engine, which need to be used for handling both
input and output type of taxes. For
taking advantage of the functionality’s provided in India Localization, user
need to perform the tax setups only in Localized tax engine and not in standard
application tax engines.
In India, we have different type of taxes
and each tax has its own rules, procedures and reports. Using
India Localization product, the user can define multiple taxes for different tax types like Excise, Customs, Sales tax, Octroi,
Service tax etc. etc. These will be used
for generation of basic statutory reports that need to be
maintained under different taxes like Excise, Sales tax etc.
Through India Localization product, the
user can also track other add on costs like freight, Insurance, discounts
etc. Provision for generating III party
invoices for expenses like freight, insurance, handling charges etc. is also
built in Localization product.
Users can define the precedence required to
calculate the taxes defined. This will
take care of tax-on-tax type of calculations including cumulative and
compounded tax calculations.
There is a provision to define taxes which
are not dependent on the price of goods. User can define adhoc type of taxes, for which the actual tax amounts be
captured at the transaction level.
There is a
provision to set up rounding off factor to be considered for the tax
calculations at the time of transactions.
Provision is made to define negative tax
rates and amount so that the discount can also be handled in a similar way.
However, if the discounts are applied in this manner then taxes are calculated on
the base amount unless the precedence is defined properly.
For all the taxes
applicable at the transaction level, which are not to be charged to the
acquisition cost, is charged to the individual tax account and will not be reflected in the acquisition cost of
the item. This is not applicable to all Excise and Customs type of taxes.
There is a facility
to define the excise registration details for the inventory organizations (e.g.
factory, warehouse etc.) defined in the system. Excise related information of the
organization/Location like, jurisdictional range /Division/ Commissionarate,
ECC number etc. can be stored in the system.
Information
regarding the excise details of the suppliers and customers is required can be
specified. Similar to the excise registration details for an organization,
details are captured for the customers and suppliers. There is an additional supplier
information screen, where the basic excise related information of the supplier,
the user need to define the document type and category type of the customer are
captured. This information will be used
for generating Cenvat reports prescribed under Central Excise Rules.
These details are
defined for a supplier or customer and are
available for the customer / supplier at their sites unless changed
specifically.
System allows different types of excise
duties viz. Basic, Additional and Special duty to be specified separately.
Provision to calculate the tax on tax as required for additional duty is also
be available.
Users can define
advelorem rate of duties or specific rates of excise duties. Through the tax precedence calculation
functionality, the user can work out duty on duty if required.
Each cenvatable item need to be assigned to
an Excise tariff on the basis of declaration filed under Rule 173 G by the
user. The excise/customs tariff of item
can be captured in the system.
There is a
provision to define all the taxes applicable for a given item. These taxes can
be defaulted based on the setups done and can be edited at the transactions
level based on the controls set.
From the taxes applicable at the item
level, users will be able to define the taxes which will be loaded to the inventory, to compute per
item landed cost. In the case of
partially recoverable taxes, the user can
define the recoverable percentage of the specified tax while defining
the tax.
India Localization supports all Cenvat
transactions prescribed under Rule 57 of the Central Excise Rules. The user can avail cenvat credit on the duty
paid on his inputs and capital goods. In
the case of capital goods, the user can take partial credit and the balance can
be availed later. There is an option for
the user to avail credit on inputs either at the time of receipt through
automatic mode or to claim credit later through a separate option.
There is an option for the user to specify the
cenvat credit that can be availed for each tax.
The user can define the percentage of credit that can be availed on a
tax. User will be able to use this functionality effectively when there is a
change in the percentage of credit that can be availed under excise
procedures. Based on the percentage
defined by the user, system will work out the tax on which Cenvat cannot be
claimed will be taken into account while deriving the acquisition cost of the
item in the case of average costing setup.
User will be able to capture accounts where
the CENVAT on capital goods and raw material will be tracked. The user in the additional organization
information screen need to specify different ledger accounts for Cenvat credit
on inputs, capital goods and cenvat receivable (in case of capital goods the
amount that need to be claimed later)
These accounts need to be specified for each organization/Location. Accounts set at the organization level will
default at the location level and will be modifiable. At any stage the register
balance and these accounts can be tallied.
Users will be able
to set the preferences for the register selection. The user can map all his duty payment
transactions through PLA register by enabling the check box “allow negative
balances in PLA” and set it off with the cenvat credit available in his input
and capital goods cenvat registers. For
performing this transaction, user need to use RG Consolidation screen
The user can view
the balances available in different excise duty registers at any point of
time. This can be used as an effective
tool by the user to answer to the telephonic queries regarding the balances
by the Central Excise departmental
officials as well as by the finance team of the organization.
System will not allow the user to run his
cenvat registers out of balance at any point of time. In the case of PLA, based on the parameter,
allow negative balance in PLA, the balances can be overdrawn. At the time of performing each transaction
for payment of duty, system will check the availability of funds in the
respective register and put the transaction to hold, if sufficient balance is
not available.
When the material is shipped out of the
cenvatable unit, it will be shipped out on an excise invoice. It will have
cross reference to the register selected for
excise payment. Serial number for register entry will also appear.
Localization provides Cenvat on input (RG 23 A Part II), Cenvat on
Capital goods (RG 23 C Part II) and PLA registers. Cenvat registers will get credited at the
time of taking credit on the duty paid by the supplier. PLA will get credited with payments through
TR-6 challans. Payment of duty can
happen from any of the three registers
based on the parameters specified in the Organization/Location.
When the quotations are to be analyzed, the
quote analysis will be performed considering the taxes that are loaded on to
Inventory. This will not consider the Cenvatable taxes.
While creating the purchase order, excise
information defined will be defaulted. If the purchase order is being created
from a quotation, then the taxes defined for the quotation will be considered.
Tax defaulting will be proportional to the quantity specified at the PO level.
When the material is received against a
Purchase Order, the taxes defined at the PO level will default. Defaulting will
be proportional to the quantity received. Since the taxes specified on the
invoice are actually applicable, user will be able to modify the taxes as per
the available invoice. This will be
applicable only for the first receipts against the PO. i.e. if an item is
received in part shipments, the taxes could be modified only for the first
receipt. All subsequent receipts will be at the taxes specified for the first
receipt.
Localization provides the functionality to
modify the taxes at the time of receipt.
This functionality can be effectively used by the user, when there are
changes in tax rates due to change in the statute/budget etc. In case of any change in taxes from the PO,
the user needs to take care to update the taxes immediately while performing the receipt. Tax changes will not be allowed once the user
comes out from the receipt screen for the first time.
For unordered receipts, users will not be
able to attach / specify the taxes applicable. As a result the tax amount will
not be calculated or defaulted (as the item price and currency is not known).
Taxes defined at the time of purchasing will be applicable here. RG and
accounting entries will be passed when this unordered receipt is matched to purchase order.
In the case of unordered receipts, user need to take care to ensure that the
taxes attached to the purchase order match with the taxes at the time of
receipt as localization do not support change of taxes at the time of receipt
for unordered receipts.
The user has
an option to generate consolidated
cenvat report or to continue with RG 23
registers. There is a provision to
update the RG23A/C Part-I registers immediately on receipt of the material.
Option has been provided to the user either to avail cenvat credit immediately
on receipt of the goods or to defer taking credit for a later time. In the case of capital goods, provision to avail partial
credit at the time of receipt and balance later is being provided.
Provision to pay to
the vendor other than the PO vendor are provided. This will be required for
paying the services offered by other vendors related to that PO. An un approved
invoice will be created immediately on receipt for payments to vendors other
than PO Vendor. This functionality of
India Localization can be effectively used for expenses like freight, insurance
etc. where payment in normal case will be done directly to such agencies.
In Release 11-I, the user has an option to
specify whether the invoice need to be matched to a receipt or to a Purchase
Order. If the user opts for ‘match to
PO’, at the time of matching, the localization taxes attached to PO will be
taken into consideration and taxes will be apportioned based on the quantity
matched. In this case taxes will be
calculated based on the taxes defined in the purchase order.
If the user opts for receipt matching, system will work out the taxes based on the
taxes available for the particular receipt and based on the matched quantity,
taxes will be apportioned.
In India, as the occurrence of variance in the taxes defined in PO with
actual receipt being very frequent, it
is suggested to opt for receipt matching, so that the taxes in AP will be in
sink with the taxes at the time of receipt.
Pay on receipt
functionality in Oracle Applications will also consider taxes payable to the PO
Vendor for the payment of receipts entered.
Localization support Pay on receipts based on receipt number as well as
packing slip number. If the user opts
for packing slip number, he need to take care to enter the packing slip number
at the time of creating a receipt. In
Release 11 i , Pay on receipt program takes into account the RTV transactions
against the receipt. Localization
program will also consider the tax impact on RTV transactions and the invoice
will have taxes and base amount only for the quantity received less RTV transactions.
Provision to pay
the excise duty even if the item is not charged to the customer is provided.
While performing
return to vendor transaction, system can take care of the reversal of Cenvat
credit that need to be done before
removal of goods. Based on the user
defined parameters, the proportionate amount of cenvat credit availed will get
reversed in excise records. The user can
generate the excise document that need to be issued under Rule 52 A for such
removals. Provision for defining user definable prefixes for the excise
document that is generated for RTV transactions is also provided.
System will put a hold to RTV transaction
for a Cenvatable item on which credit was not availed. In such cases, user need to take credit and
then perform the RTV transaction. This
check has been built for ensuring that payment of duty do not happen if credit
is not availed.
There is a provision to update the Excise
Registers on performing miscellaneous transactions. The user can effectively use this
functionality whenever he need to make adjustments in the excise registers for
various reasons. The user can make
manual adjustments in excise registers by using this functionality. User need to take care to define the
appropriate GL accounts or else will have far reaching consequences as far as
accounting is concerned.
Oracle Application allows the stocks to be
adjusted through various transactions. On updating of these transactions the RG
registers must also be updated and appropriate CENVAT amount is to be reversed.
Updation of RG registers is done automatically however, the CENVAT amount
reversal will have to be done using the data entry screens provided. User need to take care to define the correct
ledger accounts for such transactions.
User is provided
with a facility to maintain the Bond Register. Bond register can be defined for
the registered unit (organization and location). On exporting the material
under bond the available bond balance will be reduced. Bond register balance
will be restored when the proof of export number is entered.
User can make use
of this facility either for export transactions under bond or for other
transactions relating to clearance of goods without payment of duty under bond
(like clearance for exhibitions etc).
If the credits are
availed wrongly, then these credits availed will be revered. In certain cases if the material is
brought for production purposes but later used for other purposes, the Cenvat
claimed has to be reversed. This facility is provided by a general purpose data
entry screen for Excise registers. The
user is advised to take care while defining the ledger account for such
transactions.
By using this functionality, the user will
be able to view the cenvat related transactions and transactions in RG-1
register in detail.
The user has the option to use Localization
taxes while creating an invoice in the Receivable module. If the user selects the excise type of taxes,
the user can generate an excise invoice for the transaction and all excise
related registers will get updated on completion of the transaction. While performing a transaction in AR, the
user can attach the Localization taxes/precedence Logic and taxes will be
worked out automatically. This
functionality can be used effectively by
customers performing item related transactions from AR module and for those who
do not use OM module of Oracle Applications.
When the
receivables invoice created has the taxes applicable, and if the credit note or
debit note is created against the given invoice, then it will also consider all
the taxes applicable for the invoice (proportional to the quantity or
percentage as specified).
As per the
statutory requirements following registers are
maintained:
|
RG 1
|
Statement of
Finished Goods
|
|
PLA
|
Personal Ledger
Account
|
|
Cenvat reports
|
Consolidated
cenvat reports
|
|
|
|
|
*RG23A
Part I
|
Quantitative
records for the Raw Material
|
|
*RG23APart
II
|
Value record for
the Raw Material
|
|
*RG23C
Part I
|
Quantitative
records for the Capital Material
|
|
RG23C Part II
|
Value record for
the Capital Material
|
|
|
|
|
Bond Register
|
Bond Register for
Export Businesses
|
|
RG23D Register
|
Trading Register
|
*
By
considering the view of existing users of Oracle Applications, in release 11-I,
we continue to provide RG 23
registers. The user can take the print
out of these registers for reconciliation purposes and forward the consolidated
cenvat register report to the excise authorities.
Following tax
related reports will be printed in addition to the printing of Excise registers
mentioned above.
·
Printing
of Purchase Order
·
Printing
of Excise Invoice to Customers (For Shipments)
·
Printing
of Excise Invoice for Purchase Returns
·
Purchases
within the state report (Sales tax)
·
Purchases outside the state report (Sales tax)
·
Purchases
from un registered dealers (Sales tax)
·
Form
16 (TDS)
The above are only
few reports generated from Localization.
For details, please refer to the chapter relating to Reports.
User is provided with a facility to handle
the customer returns. Different options
to the user is being provided to the user to handle complex sales return transactions.
.
User is provided
with a facility use a separate price list for the excise tax calculation this
will be the assessable value price list for the purpose of excise duty
calculation and can be defined like any
other price list. User will be able to select a price list for every customer
either at customer level or customer address level called assessable price
list. If defined, only excise duty will be calculated on this price else sale
price (list price - discounts) will be used. All other taxes will be calculated
on the sales price only. This facility will be available in Oracle Order
Management and Purchasing modules.
Whenever the
material received or Issued from inventory to WIP, RG registers are updated. This includes the update of RG23A
Part I for the issue and receipt of raw material and RG-I for issue and receipt
of finished goods (and captive consumption).
Following
Applications transactions will be supported:
1.
Push / Pull
transaction from WIP.
2.
Issue of material
from Inventory to WIP.
3.
Return of material
from WIP to Inventory.
4.
Return of scraped
material from WIP.
5.
Finished goods
transfer from WIP to Inventory.
User can set up
different series of excise invoice numbers for different types of
transactions. An option to define user
definable prefixes for excise invoice numbers generated for different
transactions.
The user need to
define the Order type/Transaction type in the Define Bond register screen and
the same need to be mapped with the excise generation region of Additional
organization information screen.
A report on forecast of credit
available on account of Cenvat credit can be generated for effective fund
planing for excise requirements. The
following transactions are taken into consideration while generating the above
report
·
.Purchase
Receipts
·
Orders
issued
·
Rejections
(Vendor)
·
Return
to Receiving
·
RMA
Orders
·
Material
received but no Cenvat claimed
User is provided with a facility to
debit the excise liability under Rule 57 CC.
This can be done by defining
a tax type with
‘Modvat Recovery’. A separate
account code can be defined for these taxes.
User will be able to classify the orders
for applicable excise exemptions (CT2/CT3/Excise exempted). There is a
provision to track AR3A forms also.
System allows the different types of
customs duties viz. Basic and Additional customs duty & Surcharge to be specified separately.
CENVAT
Users will be able
to define the customs duty rates either as a fixed percentage of the value or
as a rate depending upon the amount per specified unit or an adhoc value.
Provision will be
available to define the customs duties applicable for an item. These can be
defaulted based on the setups done (like any other tax) and can be edited at
the transactions level based on the controls set.
From the customs duty applicable at the
item level, users will be able to identify the taxes which will be loaded on to
the inventory, so that the landed cost can be computed per item. User need to ensure that all cost elements
attributable to the item cost is loaded the quantity received while performing
a receipt in the system.
Users will be able to define the precedence
required to calculate applicable tax amounts. This will take care of tax-on-tax
type of calculations including cumulative and compounded tax calculations. This
will be required to calculate CVD and surcharge as they are dependent upon the
base customs duty.
Provision to allow users to claim CENVAT
for the additional customs duty paid, if applicable. While availing the CENVAT
it will be restricted to the percentage specified for availing CENVAT at the
tax level. Also, the appropriate Excise
registers will be updated.
For the taxes where
CENVAT can not be claimed or the percentage of customs duty for which the
CENVAT is not available, acquisition cost of the item will be increased to that
effect.
The process of
claiming CENVAT is similar to that of the excise duty CENVAT. The accounts set
for the excise duty CENVAT will be used in this case.
Since, the customs
duty is to be paid in the functional currency (INR), user will be allowed to
change the applicable currency at the transaction level. However, the provision
to change currency will depend upon the parameters set while defining the tax
in the ‘Tax Definition India Localization’ option.
Since, the customs
duty is always paid in advance. i.e. the amount is paid before the material is
received in stores, There is a facility
where the duty could be paid before receiving the material. For this purpose,
an on account (prepayment) payment can be made in the name of Customs
Authorities. Bill of Entry (BOE) as given by Customs Authorities is then
entered in the system. BOE is settled against the prepayment.
Provision to apply
the BOE to the receipt is required. Only the fully paid Bill of Entries will be
considered for application at the time of receipt. This will identify the BOE
used for any particular receipt. The Bill of Entry can only be applied against the
customs duty type of taxes i.e. Basic and Additional Customs Duty.
During receipts, the BOE amount applied to
the line will be considered as the applicable customs duty amount, instead of
the amount specified at the receipt level.
There is a report provided giving the
details of Bill of Entries which are
unapplied , to establish control over them and to tally the same
manually with GL balances.
There is an account code captured to
account for write off balance in Bill of
Entry at Organization / location level.
There is a provision to force close Bill of
Entries which are open and to write off the prevailing balances. The balance
amount is accounted under write off bill of entry account, defined at
Organization / location level.
AP accrual reconciliation and write off
function of Oracle Applications will consider localization taxes also.
User is provided
with a facility to enter sales tax registration details for the inventory
organizations defined in the system. Both local sales tax registration details
and central sales tax registration details will be captured for an organization
or an organization and location. This can done in the same setups where the
excise registration details are entered.
Information
regarding the sales tax registration numbers of the suppliers and customers is
captured. Similar to the organizational sales tax details, details will be
captured for the customers and suppliers. These details can be entered for a
supplier or customer at the address level, where they can be changed if
different. Suppliers / Customers whose sales tax registration details are not
available will be treated as non registered parties and can be used to remit
taxes on purchases from an unregistered dealer.
System allows two types of sales tax
definitions viz. Local sales tax sales taxes like works contract tax are not
supported. The user can define multiple
sales taxes including works contract tax.
The tax calculations will work in sink with the tax precedence logic
defined by the user for each transaction.
In the case of works contract tax, the user
need to define the tax authority as a vendor with vendor type TDS and at the
time of approving the invoice, the prescribed WCT will be deducted through a negative credit memo and an invoice
will get generated to the Tax authority.
Like other taxes,
users will be able to define the sales tax rates either as fixed percentage of
the value or as a rate depending upon the quantity per specified unit or an
adhoc value.
Like all other
taxes, provision will be available to define the applicable taxes for a given
item at the transaction level. These taxes can be defaulted based on the setups
done and can be edited at the transactions level based on the controls set.
The following reports are provided to
facilitate the Sales tax set off feature.
·
Purchases
and sales tax on purchases within the state
·
Purchases
and sales tax on purchases outside the state
·
Purchases
from unregistered dealers
From the taxes applicable at the
item level, users will be able to define if the tax will be loaded to
inventory, so that per item landed cost can be computed.
Even though the sales tax is usually
loaded to the item, provision to allow users to load it to the sales tax
account are provided. This is useful when the landed cost of the item is
defined irrespective of the sales tax.
In the event of
purchase returns, all the taxes applicable to the item will be reversed and for
average costing organization the new average cost of the item will
re-calculated.
Since, the
applicable sales tax forms will be specified at the tax level, depending upon
taxes applied, applicable sales tax forms to be received will be captured.
In addition to
other reports, the user is provided with
the following reports
·
Purchase
Return beyond the specified period, where the period has been provided as a report
parameter.
·
Status
of Sales tax form issued / not issued against purchases.
After capturing the
applicable tax forms to be received, the
actual receipt of these forms will be tracked per Purchase Order. Information regarding the tax forms
received, it’s number and amount can be maintained in the system.
Facility to default
the taxes at the transaction based upon the customer and it’s address for the
item selected are provided. For this purpose the users will have to specify the
tax categories applicable to the item and maintain an item-tax category link
called item category list. This can be specified at the customer and customer address level so that the applicable
taxes can be defaulted through defaulting of tax category.
In the event of
sales returns, corresponding sales taxes need to be reversed. User is provided
with a report of credit notes against sales returns, for claiming the sales tax
return.
After capturing the
applicable sales tax forms to be received, the actual receipt of these forms
will be tracked per Order or Invoice basis. Information regarding the sales tax
forms received, it’s number and amount will be maintained.
User is provided with a facility to capture
the Registration details for TDS for the Organization in the systems. The
details include the TAN Number, PAN Number and also the Ward reference for each
organization defined.
User will also be able to capture the tax
registration details for the Vendor and customers defined in the systems. The
details include the TAN Number, PAN Number and also the Ward reference where
ever applicable in case of all suppliers and customer defined in the system.
The user is provided with an option to
define the tax year. This period is independent and all TDS limits and reports
like annual report will be based on the period. This year can be different from
the Accounting calendar year as specified in the application. With this the
user will have the flexibility of having a different year for the purpose of
Accounting and another year for the purposes of Tax Deduction at Source.
Addresses tax deduction at Source for
following types of payments
·
Payment
to Contractors / Subcontractors
·
Rent
·
Professional
/ Technical Fees
·
Other
transactions where TDS need to be deducted
·
Deductions
as per works contract Act
·
User
definable transaction where amounts need to be withheld under any other
provisions of Law/procedures (for eg. Deductions towards ESI)
User can define various sections which can be associated to TDS taxes. These
sections will be useful for TDS
certificates generation and printing.
User is provided a facility to define the
various TDS sections and the corresponding limits applicable for each section
as defined in the Act. The limits for each supplier will be tracked based the
limits specified for each section. The user can set limits based on each Contract
and as well period based limits. The limits will be tracked by the system for
each supplier against each section as defined in the act at the Supplier level
irrespective of the number of sites each supplier has got. However, the limits
internally will be controlled at the Operating unit level as defined by the
user.
The user will be able to define various
taxes with the rate of tax on the Invoice line to be applied under the category
Tax deduction at Source. The user will be able attach a tax so defined to each
Supplier. This will be defaulting tax for the purpose of TDS for such supplier
at the transaction level. This default can be set at the Invoice level as well
as at the Invoice line level.
The systems is set to deduct the Tax at
Source at the base Invoice line amount. In case there is a tax applied on the
Invoice line, then the user will modify the tax rate accordingly and apply the
revised rate on the Invoice line amount.
The system based on the TDS Tax applied to
an invoice line will recover the TDS and create a credit memo against the same
invoice line. The system will also create an invoice for the same amount for
the Tax authorities supplier account. The Credit memo and also the Invoice will
be created with an approved status automatically by the system. The due date
can be accordingly set for the Tax supplier and on due date the system will
automatically create payment.
The user is provided with a facility to
track the TDS recoveries by their customers based on payment received and also
based on invoices. The user will be able to take a report on the TDS recovered
by their customer with a break up on payments received and also based on the
invoice raised by the user.
There is a provision to maintain
Certificates for Concessional rates of TDS along with their validity period, for
individual vendors and also for specific invoices.
There is a provision to deduct tax at
source on prepayments and also to pass appropriate accounting entries to GL.
At the time of making standard Invoice
payments, there is a provision to apply Prepayments. At the same time TDS
amount also gets adjusted against the TDS, already paid on prepayment.
The reports like
·
Invoice
Register
·
Vendor
paid Invoice History
·
Posted
Invoice Register
will now show both Invoice amount and net
of TDS as applicable.
1.5.15
Facility to cancel
previous TDS invoice automatically, on cancellation of original invoice, if the
original TDS invoice was not paid to IT Authorities
User can cancel the previous TDS invoice
automatically, if the original invoice on which this TDS is deducted, is
canceled and the old TDS invoice is not paid to I T Authorities, till date.
User can consolidate all the payments made
to a vendor and TDS deducted, during a
given period.
Tax Deduction Certificates would be issued
with an unique identification number generated and maintained. This will
eliminate overlapping of TDS Certificates.
TDS certificates will be printed with an
identification ‘Original’ for the first time printing of TDS certificate. For
any additional copy that is printed, it will be printed as ‘Duplicate’.
User can generate the following reports for
annual returns on TDS
·
Details
of Tax credited or paid during the period and of TDS at prescribed rate - in
the case of companies
·
Details
of Tax credited or paid during the period and of TDS at lower rate or no tax
deducted in accordance with the provision of section 197- in the case of
companies
·
Details
of Tax credited or paid during the period and of TDS at prescribed rate - in
the case of persons other than companies
·
Details
of Tax credited or paid during the period and of TDS at lower rate or no tax
deducted in accordance with the provision of section 197- in the case of
persons other than companies
There is facility to raise credit memo on
the customers outstanding amount which will be linked to the receipts and / or
to the invoices raised by the user against the TDS certificate received from
the customers.
Following are the important transactions
supported against this functionality.
·
TDS
on pre-payments
·
TDS
on invoices
·
Works
contract tax on pre-payments
·
Works
contract tax on invoices
·
Applying/Un
applying prepayments to invoices
·
Cancellation
of invoices(TDS entries will be reversed only if the payment to the TDS
authority is not made)
·
Other
type of witholding tax (for eg. ESI)
The user will have a facility to define
different service tax names with different rates under the service tax type
category.
The user will be able to define multiple
service tax rates in the system and attach the same to the transactions
depending on the requirement. The system will calculate the service tax on the
invoice line in which the tax is attached. However if the user wants to compute
service tax on a portion or part of the invoice line then the user is define
the rates accordingly and attach the same to the invoice line.
The system will
provide a service tax report based on the parameters set for the report with
the details of all collections for the invoices where service tax is charged.
The user has to create an invoice in AP for the payment of the same to the tax
authorities.
Is a provision for
the User to classify an organization locations to be trading, in addition to the capturing of
their excise registration particulars.
This will be applicable for all sub inventories coming under trading
organizations and user can also identify individual sub inventories as trading.
User will have a provision to capture
Excise department approved numbers for Excise invoices being generated for
shipments from these Trading Organizations.
1.7.3
Tracking original excise
invoice of receipt with the shipments from these trading organizations
User will have a provision to associate
original excise invoice reference on the basis of LIFO or FIFO. There is a
provision to specify the invoice number at the transaction, so as to allow
override with each shipment ( at the time of completing sale invoice, in the
case of only AR installation) happening
from trading organization location.
User will be able
to maintain Register RG23D for each organization location which is identified
as trading. The following transactions are considered for the above register.
Provision to print
Register RG 23 D will be available.
User will have a provision to add records
manually to register RG23D. User will not be able to update or delete the
existing records.
User will be able to define the tax
rate changes with a reference to its old tax name to be considered for
supplementary transactions of the sales cycle.
User will be able to define the
price changes with a reference to its old price list (similar one for changes
in Assessable value) to be considered for supplementary transactions of the
sales cycle.
Is a provision to
consider all the invoices and credit memos created during a given period and
work out retrospective difference in amounts, as applicable.
Is a provision to
print retrospective difference in amounts on all invoices and credit memos
during a given period due to price / tax changes in Sales Cycle.
User will be able
to choose the action to be taken on the supplementary transactions. Is an
option to generate a supplementary invoice or credit memo or not to consider
the transaction for retrospective price changes at the choice of the user.
The following
interfaces are provided through localization.
·
Quotations
·
PO
Requisitions
·
Purchase
Orders with Taxes
·
Receipts
interface including Taxes
·
Material
transactions
·
Tax
categories
·
Sales
Order Interface
·
AR
Interface
·
Interface
of externally calculated taxes (except Excise) on OE transactions
·
RG
23 A Register (Part I & Part II)
·
RG
23 C Register (Part I & Part II)
·
PLA
Register
User will be able
to define block of assets by having the asset categories defined with highest
level of details as required for Income Tax.
User is provided
with a facility to enter Opening balances for block of assets (one time
facility).
User is provided
with a report which will facilitate arriving at asset category wise Gross Block
of Assets and written Down Value as required for Income Tax purpose.
User is provided
with a facility generate monthly closing balances of Block of assets.
User is provided
with option to capture duty drawback claimable with each tax name of type
‘Customs’ or ‘CVD’.
1.11.2
Option to consideration of
Receipts in LIFO or FIFO or external basis for arriving at Duty drawback claims
User is provided
with an option to chose the mode of operandi to calculate duty draw back. It
can be either automatic or manual. If automatic the system will further provide
an option for LIFO or FIFO on receipts. If manual, the user will be able to
choose the receipts at his choice.
User is provided
with facilities for
·
Generation
of Duty drawback claims
·
Report
to help tracking duty draw back.
1.12
Miscellaneous
Features
There is a provision to print
purchase register along with tax components.
User will be able to inquire on
accounting entries being generated through localization by source wise.
User is provided with the following
additional reports
·
Debtors
Ledger
·
Creditors
Ledger
·
Cash
Book
·
Bank
Book
·
Purchase
Register
·
Debtors
Trail Balance
·
Creditors
Trail Balance
·
Depreciation
Detail Report
·
Income
Tax act Fixed Asset Schedules
·
AR3A
Forms Status Report
·
Excise
Duty Claim report against RMA Receipts
·
Consolidated
Supplementary Invoices Report
·
Journal
Voucher Report
·
Commercial
Invoice U/S 57G or 57T
User is provided with the following
reports enhanced for taxes to do audit trail
·
Receiving
Account Distribution Report
·
AP
accrual rebuild reconciliation report
·
AP
accrual reconciliation report
In the base
product, an option is being provided to
match the receipts with a invoice generated in Oracle Payables module. While making invoice matching to receipts,
proportionate localization taxes will get accounted in the distribution lines
of the appropriate invoice.
Oracle Purchasing will automatically
capture and store the exchange rate at the time of receipt. When you use Oracle
Payables to match invoices to purchase order receipts, the exchange rate at the
time of receipt will be used to calculate the exchange rate variance. Localization taxes will also consider the exchange rate at the
time of receipt.
While
making a receipt, accounting
entries related to localization taxes
for this transaction can be viewed by navigating through the view accounting functionality.
The updation of excise registers on
performing a receipt can be viewed from this menu.
While performing a pay on receipt system
will consider the return to vendor transactions performed and the proportionate
localization taxes will be adjusted in the Oracle Payables invoice.
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