|Oracle Financials for India Implementation Guide|
Part Number E13657-05
The Excise advance/settlement paid to the Excise Authority has to be booked against an Excise Authority, through the ‘Capture PLA Payments India Localization’ screen. Before you create a PLA Payment Transaction, you should have defined an Excise Authority. You would create a Supplier and Site for this Authority. Additionally, in the Type field on the Classification tab, choose ‘Excise Authorities-IND’. On doing this, when defining a PLA Payment transaction, the Supplier Name would be listed in the LOV of the ‘Authority’ field on the ‘Capture PLA Payments India Localization’ screen.
See Also: Defining Excise Authority, India Local Payables Chapter of India Localization User’s Reference Manual
The Duty advance paid to the Customs Authority has to be booked against a Customs Authority, through a Bill of Entry. Before you create a ‘Bill of Entry’ India Localization Transaction, you should have defined a Customs Authority. You would create a Supplier and Site for this Authority. Additionally, in the Type field on the Classification tab, choose ‘Custom Authorities-IND’. On doing this, when defining a ‘Bill of Entry’ transaction, the Supplier Name would be listed in the ‘Customs Authority’ field LOV on the Bill of Entry India Localization screen.
See Also: Defining Customs Authority, India Local Payables Chapter of India Localization User’s Reference Manual
It would be a pre-requisite to define a BOE Agent before you do a BOE Transaction. Navigate to the Payables Setup and define the Clearing & Forwarding agent information. The Agent Codes would appear in the LOV of ‘Agent Code’ field of the Bill of Entry screen.
See Also: Defining BOE Agent, India Local Payables Chapter of India Localization User’s Reference Manual
The existing screen has been modified to capture Additional TDS Information.
New behavior of this screen:
You will have to capture TDS Vendor Type value for the vendor at the NULL Site Level.
Giving PAN for the Vendor is mandatory when “TDS Details” screen is opened.
You will have to Confirm PAN by checking the checkbox, “Confirm Pan”. Once this checkbox is checked and the record is saved, you cannot modify the PAN for the Vendor.
You should give default TDS Section Code value in the “Default TDS Section” field. Giving Tax Name is not mandatory. The Tax Name value can be given only for the Site Level record. Even though the Tax Name is attached here, system will not generate any TDS until the first TDS Threshold slab is crossed. At any point of time, total TDS deducted would be as per the TDS Threshold setup slab amounts.
Based on the TDS Threshold setup, Section Type, Section Code and Threshold Setup Name will be defaulted. Whether this is an exception setup or not will also be indicated.
Steps to be followed in defining Additional Vendor Information:
Open the Additional Vendor Information Screen.
Select the value of the Vendor from the List Of Values. Don’t select any value for the field ‘Site’.
Save the record.
Click the ‘TDS Details’ Button.
Select the value for the field ‘TDS Vendor Type’.
Enter the value for the field ‘PAN No’. This should be a 10 digit valid alphanumeric value. Enough care should be taken while entering this value, as the user will not be able to update this value once it is saved.
The fields ‘TAN No’, ‘Ward No’ and ‘Create Pre-Approved TDS Invoice Credit Memo’ are optional fields. Before saving the record, the user should enable the check box ‘Confirm Pan’ and then only save the record.
Once the Null Site record is saved, the user should requery the record and can then select the value for the field ‘Default TDS Section’ and save the record. The user can also observe that the TDS Thresholds setup details are getting queried in the Vendor Additional Information screen at the Null Site level.
For creating a Site level record, the user should select the site value from the List of Values of the ‘Site’ field. Save the record. Then, click the ‘TDS Details’ button and save all the values defaulted from the NULL Site record.
Once the Site Level record is saved, the user should requery the record and then attach the values for the fields ‘Default TDS Section’ and ‘Tax Name’.
Importance of PAN:
TDS Threshold is maintained by Vendor PAN. Hence process of entering and confirming PAN has been made mandatory. Enough care should be taken by the users to enter the correct value for this field.
Importance of TDS Vendor Type:
TDS Thresholds are for a combination of TDS Section Code and Vendor Type. Vendor Type seeded as part of this solution are:
Hindu Undivided Family-IND
You can create more TDS Vendor Types in the TDS_VENDOR_TYPE purchasing lookup and create more TDS Threshold based on the new TDS Vendor Types.
India Local Payables - India Localization - Suppliers - Additional Information.
|Name||This field displays name of the Vendor defaulted from Supplier Additional Information screen|
|Number||This field displays Vendor Number defaulted from Supplier Additional Information screen.|
|Site||This field displays name of the Vendor Site defaulted from Supplier Additional Information screen|
|Vendor Type||This field displays Vendor Type defaulted from Supplier Additional Information screen. This is not applicable for the TDS Functionality.|
|Invoice Approval section|
|Create Pre-Approved TDS Invoice Credit Memo||You can check this box to generate pre-validated TDS Invoices and Credit Memos|
|TDS Information Section|
|TDS Vendor Type||Capture TDS Vendor Type here. Please refer discussion above for more details|
|PAN No||Capture PAN of the Vendor in this field|
|TAN No||Capture TAN of the Vendor in this field|
|Ward No||Capture Ward of the Vendor in this field|
|Confirm Pan||Check this box to confirm PAN of the Vendor|
|TDS Details block|
|Default TDS Section||Select a default TDS Section for this Vendor. TDS will be deducted based on checking the Threshold for this section.|
|Tax Name||You can select a default Tax Code here. You can select the value for this field only for the Vendor Site level record. Even though the Tax Name is attached here, system will not generate any TDS until the first TDS Threshold slab is crossed. At any point of time, total TDS deducted would be as per the TDS Threshold setup slab amounts. If the user wants the TDS to be deducted based on the TDS Thresholds setup, then the user need not attach any TDS Tax Code value here. The value of the TDS Tax Code will be picked up from the TDS Thresholds setup for a specific Operating Unit.|
|Section Type||Displays the Section Type under which Threshold setup has been made|
|Section Code||Displays the Section Code under which Threshold setup has been made|
|Threshold Setup Name||Displays the Threshold Name that has been setup for this Vendor|
|Exception Setup||Indicates whether this Threshold is an Exception setup or not.|
There can be scenarios, wherein the Suppliers have applied for PAN, but are yet to get the PAN Number value. In those cases, user has got the option to change the value of PAN Number for the suppliers. User has to follow the steps mentioned below:
Run the concurrent program 'India - Pan number Update'.
The Concurrent program takes the values for the following parameters:
Vendor Name: Select the Vendor Name for which, the user wants to modify the value of PAN Number.
Old PAN Number: Select the value of Old PAN Number.
New PAN Number: Enter the value of New PAN Number. Debug: Takes the values Yes / No. This should be used for any debugging purposes. Expected TDS behavior
The following is the behavior of TDS in different scenarios.
|1||Invoice created that does not reach the Threshold (Single / Cumulative)||No TDS Invoice will be generated|
|2||Invoice created that reaches Single Invoice Threshold||TDS will be deducted based on the Tax Code applicable for Single Invoice Threshold|
|3||Invoice created that reaches Cumulative Invoice Threshold||TDS will be deducted based on the Tax Code applicable for Cumulative Invoice Threshold. Adjustment Invoice will be generated based on tax already deducted, if any.|
|4||Create Invoice with 2 distribution lines and for each line, TDS Tax belonging to a different section is attached.||System will generate the TDS Invoices, based on the Threshold setups of that particular Section and Vendor Type|
|5||Standard Invoice is created. In the 'Invoice Distributions GDF', TDS/WCT/ESI taxes are attached in all the segments (3 segments).||System will generate 3 TDS Invoices on validation of Standard Invoice for each of the segment.|
|6||Standard Invoice having TDS/WCT/ESI Invoice is cancelled||TDS/WCT/ESI Invoice will be cancelled.|
|7||Standard Invoice with one negative distribution line and one Positive Distribution line, and the same TDS Tax is attached to both the distributions||System will generate the TDS Invoice for both the lines.|
|8||Create a Standard Invoice in foreign currency and validate the same.||System will generate the TDS Invoice and Credit Memo in functional currency.|
|9||TDS calculation based on Type of Vendor - Surcharge applicable to Vendor Type above Threshold Limit.||When Threshold Limit for surcharge is reached, Tax Code that includes the Surcharge will apply to all the Invoices generated during the year.|
|10||TDS Threshold calculations by manually updating the Total Threshold Invoice amounts in the Manual 'Thresholds' Screen.||System will update the Threshold amount and further TDS Invoice generation will be based on the modified Threshold.|
|11||A PO matched Invoice for 2 item lines.||System will generate the TDS Invoices based on the current Thresholds.|
|12||A Receipt matched Invoice for 2 item lines.||System will generate the TDS Invoices based on the current Thresholds|
|13||Creation and validation of a prepayment Invoice||System will generate the TDS Invoices based on the current Thresholds|
|14||Application of Prepayment Invoice to a ‘Never Validated’ Standard Invoice.|
The ‘Standard Invoice’ is validated after prepayment application and if any TDS tax code is applicable to the standard invoice and if the corresponding prepayment invoice (which is applied on the standard invoice) is already having any TDS generated.
|System will generate TDS invoice for Vendor and CM for the TDS Authority for the TDS tax code attached to the standard Invoice and also an RTN invoice for the vendor and CM for the TDS Authority will be generated by the system in lieu of the TDS generated for the Prepayment Invoices. So, there will be adjustment / reversal entries generated by the system for the TDS deducted on the Prepayment.|
|15||Unapply the prepayment invoice on the standard invoice |
When prepayment invoice was applied to a NEVER VALIDATED standard Invoice.
|Reversal of the above point (point no. 14).|
|16||Apply the Prepayment invoice having the TDS invoice to the 'Validated' standard invoice having the TDS Invoice.||System will generate RTN invoice for Vendor and CM for the TDS Authority.|
|17||Unapplication of prepayment of invoice on to a VALIDATED Standard Invoice||System will generate a RETURN Invoice for the TDS Authority and Credit Memo for the Vendor.|
Please note that support for Works Contract Tax (WCT) and Employee State Insurance (ESI) deductions are implemented only as a workaround. There is no support for any reporting for these taxes.
In Oracle Financials for India, navigate to the Enter Transaction India Localization window from India Local Order Management > Customers > Additional Information.
Alternatively, navigate to India Local Receivables > Customer > Additional Information.
|Operating Unit||The Operating Unit for which Customer Additional Information is entered.|
|Customer Name/Site||You can select the Customer Name from LOV for whom the Additional Information regarding tax is to be defined. The Customer Number will default. The Customer Site will be selected from LOV for which the information will relate. The Customer Additional Information can be defined for no specific location also and this will be treated as location NULL.
Important: Additional Customer Information can be recorded in the system only on saving the Customer Information in the Customer Master of the standard application.
|Exempt||If the Customer is exempted from Excise, then you need to enable this Check Box.|
|Excise Block||You can enter all these fields which are relevant to identify the Excise Duty information for a Customer for a Location.|
|Sales tax Block||Information regarding Sales Tax like CST No and LST No which are relevant to identify the Sales Tax information for a Customer for a Location.|
|Reg No||Specify the VAT Registration Number applicable to the Customer, Customer Site|
|Assessable Value||You can select from the list of Price Lists. The price specified in the list here would replace the Line Amount while calculating VAT Taxes|
|Service Tax block|
|Service Tax Reg No||Customer Service Tax Registration Number will be captured in this field.|
|Income Tax Block||information regarding Income Tax like PAN No and TAN No which are relevant to identify the Income Tax information for a Customer for a Location.|
|Item Category List||You can select from the LOV the Item Category List. The selection of the Item Category List will affect the default status of the taxes defined within the Tax Categories associated to the Items within this Item Category list. This is an optional field.|
|Assessable Value/Transaction value||There will be cases where the price charged for the transaction is not the sole consideration and the Customer relationships will have an impact on the sale consideration. Section 4 of the Central Excise Act, specifies that if there is any other consideration built up in the price, Excise Duty needs to be worked out on the normal transaction value of the goods.|
There are cases, where Excise Duty or VAT Tax needs to be calculated on some other price. This requirement is addressed through the functionality of Assessable Value. You can create a simple Price List (Without use of pricing Attributes that are available in Advanced Pricing Module) as the Assessable Value/Transaction value Price List and the same can be attached to any Customer/Customer Sites.
While performing a transaction for a Customer/Customer Site, first system will check whether any Assessable Value list is attached for the Customer for the Item under transaction. If there is any Assessable Value attached to the Customer for the Item, Excise Duty will be calculated on the Assessable Price List and not based on the line price.
If no Assessable Value is defined for a Customer/Item, Excise Duty will be calculated on the line price amount.
When Customer relationships have been defined, the List of addresses will show LOV of related Customers also. However, the LOV will not show all values based on Profile setup for Customer relationship.
Whenever the price charged is not the sole consideration and a different price needs to be considered for calculating Excise Duty, you must attach the price as Assessable Value. The price that needs to be considered for calculating Excise Duty / VAT needs to be defined in the Price List.
All the columns have been not described. Do we need to describe for all the values. If yes we can pick and paste it from AR.
The Tax Details window lets you set up tax defaults and preferences for Project Billing.
Using the India Local Project Billing responsibility and navigate to the India Local Project Billing>Setup>India Local Tax Setup window.
The Tax Default window has two tabs:
Contexts tab: Use this to define the tax categories to be used for each of the context names: Event Type, Project, Expenditure Type, and Customer/Site.
Preferences tab: Use this to define the tax defaulting hierarchy preference for the Distribution Rule and Context Name.
The following table describes the Tax Default window.
|Context Name||context name|
|Tax Category||All defined categories|
|Default Tax Category, where Tax Category is empty||If this is selected the tax category will be assigned to all the context values in the lines section where the tax category is empty. This will not override the current tax categories for any of the context values.|
|All, Override all the Tax Categories||If this is selected the Tax Category will be assigned to all the context values in the lines section. This will override the current tax categories for any of the context values.|
|Name||Select the appropriate context name for which you want to assign a tax category.|
|Value||The list contains values based on the context name selected. For example, if the Event Type context name is selected, then all the event types as per Oracle Project Billing setup will be displayed here. |
Select the appropriate Context Value for which you want to assign a tax category.
|Customer Site||The list contains customer site for the customer selected as the Context Value. This list is available only if the context name is Customer or Site.|
|Tax Category||The list contains the tax categories defined. Select the appropriate tax category you wish to use as the default tax category for the selected context value.|
|Distribution Rule||This will display the distribution rules as per the Project Billing setup.|
|Context Name||You will define the preference number for each of the context name. This preference number will determine the hierarchy of tax defaulting to be used.|
|Preferences||You can enter any unique number for a combination of Distribution Rule and Context Name. This preference number will determine the tax defaulting hierarchy.|
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