First-Party Tax Registration Number Defaulting on Payables Invoices for India
Assign the first-party tax registration number, or TAN, by default when entering Payables invoices for India to ensure accurate application of threshold buckets during withholding tax calculation. This minimizes any manual efforts during invoice entry.
The TAN is defined as a withholding tax registration number for the legal reporting unit. You manually assign the TAN to an invoice using the Tax Deduction Account Number field in the Create or Edit Invoice page.
Create Invoice page
A legal entity can have multiple legal reporting units (LRUs), and you can configure a TAN for each LRU.
Once enabled, the TAN is assigned to every invoice created when no value is provided by the user, by default, according to the logic in this table:
| # | Is main LRU defined? | Scenario | Is TAN defaulted? |
|---|---|---|---|
| 1 | Yes | TAN is defined only for main LRU. | Yes |
| 2 | Yes | The same TAN is defined for all the LRUs. | Yes |
| 3 | Yes | TAN is not defined for the main LRU but defined for other LRUs and all LRUs have the same TAN. | Yes |
| 4 | Yes | TAN is not defined for the main LRU but defined for other LRUs. The other LRUs do not have the same TAN. | No |
| 5 | Yes | TAN is defined for the main LRU. The other LRUs either have the same value for TAN as the main LRU or do not have TAN defined. | Yes |
| 6 | Yes |
TAN is defined for the main LRU. The other LRUs do not have the same value for TAN as the main LRU. |
No |
| 7 | No | All LRUs have the same TAN. | Yes |
| 8 | No | All LRUs have a different TAN. | No |
The TAN will be assigned by default to invoices created from invoice data in the open interface tables by running the Import Payables Invoices process, invoices created from the Create Invoice page and invoices created using the REST API.
This feature minimizes manual efforts in providing the TAN during invoice entry. The TAN influences the application of threshold buckets for withholding tax calculation.
Steps to Enable
Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.
Offering: Financials No Longer Optional From: Update 25C
Tips And Considerations
- The withholding tax registration must be defined with the validation type of ORA_IN_TAN to be considered by the defaulting logic.
- Once the conditions for defaulting are met, the TAN is assigned when the invoice is saved.
- Once the invoice is validated and withholding tax calculated, the existing behavior still applies that the TAN cannot be updated.