(IND) Setting Up Country-Specific Functionality for India

This chapter discusses how to:

• Set up UDCs for India.

• Set up AAIs for India.

• Set up India-specific next numbers.

• Map business units to states.

• Assign tax types to tax regimes.

• Enter details for a price adjustments.

• Set up level costs for combinations of tax types and tax regimes.

• Set up tax registration details.

Setting Up UDCs for India

In addition to setting up your standard software user-defined codes (UDCs) with country-specific values for India, you must also set up India-specific UDCs. This section discusses how to:

• Set up standard software UDCs for India.

• Set up UDCs for legal documents.

• Set up India-specific UDCs.

Setting Up Standard Software UDCs for India

This section discusses the standard software UDCs that you must set up with India-specific values. These UDC values might be used by standard software programs, or might be used by India-specific programs.

Document Type (UDC Table 00/DT)

Set up values in this UDC table for TDS groups. You use these codes when you set up next numbers for TDS certificates. The document types that you set up must include the code for the TDS group followed by a percentage symbol (%). Examples of document types for TDS next numbers include:

Search Type (UDC Table 01/ST)

Set up code EXU in this UDC table. You assign this search type code to address book records for excise units. The system uses this code to identify address books records of excise units when you process excise tax.

Activity/Status Codes (UDC Table 40/AT)

Set up values in this UDC table for the status of the consignments that you create when you send or receive excise-exempt materials from a subcontractor. The system assigns or changes a consignment status when you use the Work With Consignment program (P75I3901) or run the Print 57F4 Challan program (R75I3906).

The consignment program and report require that specific values exist in UDC table 40/AT table. The values are not hard-coded; you must add them as follows:

See (IND) Processing Excise-Exempt Consignments.

Landed Cost Components (UDC Table 40/CA)

Set up values in this UDC table to identify the tax or cost types that use landed cost functionality for tax calculations. When you set up level costs in the Relation Landed Costs to Tax Regime / Tax Type program (P75I007), you enter a value from this UDC table. Examples include:

Landed Cost Rule (UDC Table 41/P5)

Set up values in this UDC table to process excise tax and cess on purchase transactions. When you enter purchase orders, you enter a landed cost rule from this UDC table to obtain the additional cost on purchases.

The values for this UDC table are not hard-coded. An example is EXC for excise duty.

Item Category Code 06 (UDC Table 41/06)

Set up values in this UDC table for the units of measure (UOM) that you use in the RG-1 register.

You enter values in the Special Handling Code field to differentiate between volume and weight. The first character in the Special Handling Code field must represent one of these types of items:

• N: (natural, or ambient) for bulk items.

• V :(standard volume) for bulk items.

• W: (weight) for bulk items.

• P: (packaged) for packaged items.

Enter the UOM for the item after the first character.

The values for this UDC are not hard-coded. Examples include:

G/L Posting Category (UDC Table 41/9)

Set up values in this UDC table to represent the excise duty, value-added tax (VAT), and sales taxes that you process. The system uses the values from this UDC table to determine the general ledger accounts for the monetary amount of inventory transactions for an item.

The values for this UDC are not hard-coded. Examples of values for India taxes include:

Setting Up UDCs for Legal Documents

This section discusses the UDCs that you must set up for legal documents that are used to process invoices for excise, sales, and service taxes, as well as VAT, tax collected at source (TCS), and work contracts tax (WCT).

Generate Contact Information (UDC Table 70/CI)

Set up values in this UDC table to specify whether to generate contact information and the source from which to generate the information. You enter values from this UDC when you set up legal document types.

The values for this UDC are not hard-coded. Examples include:

Legal Document Type Group (UDC Table 74/DG)

Set up values in this UDC table to use when you set up legal document types.

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Discriminate Taxes (UDC Table 74/DL)

Set up values in this UDC table to specify how taxes and tax amounts are to appear on invoices. You enter values from this UDC when you set up legal document types.

The values for this UDC are not hard-coded. Examples include:

Legal Document Copy Number (UDC Table 74/LN)

Set up values in this UDC table to specify the text that appears on invoices. For each code, you define the text that appears on the corresponding copy of the invoice. For example, you might define the text as ORIGINAL FOR BUYER for code 1. You enter values from this UDC when you set up legal document types.

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Number of Copies Source (UDC Table 74/NC)

Set up values in this UDC table to identify the source of the legal document copies. You enter values from this UDC when you set up legal document types.

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Legal Document Title Print (UDC Table 74/PT)

Set up values in this UDC table to specify the title for a legal document type. You enter values from this UDC when you set up legal document types.

The values for this UDC are not hard-coded. Examples include:

Print Line Types for Legal Documents (UDC Table 74/PL)

Set up values in this UDC table to identify the line type that specifies the number of rows allowed. You enter values from this UDC when you set up document type and print template relationships.

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Supplier Address Source (UDC Table 74/SC)

Set up values in this UDC table to specify the source of the address and tax registration information for the company that generates invoices. You enter values from this UDC table when you set up legal document types.

The values for this UDC are hard-coded: Verify that these codes exist in your system:

VAT Condition (UDC Table 74/VC)

Set up values in this UDC table to identify document type relationships. You enter values from this UDC when you set up legal document type relationships.

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Legal Document Types (UDC Table 75I/LT)

Set up values in this UDC table for the titles for legal document types. You enter values from this UDC when you set up legal document types.

The values for this UDC are not hard-coded. Examples include:

See Also

(IND) Setting Up Legal Documents for Tax and Export Invoices

(IND) Processing Tax and Export Invoices

Setting Up India-Specific UDCs

Before you process taxes for India, set up the UDC tables discussed in this section.

Claim Months (UDC Table 75I/CM)

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Chapter Number Type (UDC Table 75I/CT)

You enter values from this UDC table when you work with the Service Tax Category Codes Mapping (P75I009) and Chapter Number Set Up (P75I016) programs.

The values for this UDC are hard-coded. Verify that these codes exist in your system:

See Setting Up Chapter Numbers and Descriptions.

States for Form 26 (E Format) (UDC Table 75I/ES)

You enter values from this UDC table when you work with the Form 26Q Quarterly Returns program (R75I122EQ).

The values for this UDC are not hard-coded. Examples include:

See India Reports for TDS.

Tax Rule Type (UDC Table 75I/ET)

You enter values from this UDC table when you set up tax rules using the Tax Rules Setup program (P75I072).

The values for this UDC are hard-coded. Verify that these codes exist in your system:

See Defining Tax Rules.

Excise Adjustment types (UDC Table 75I/EX)

The values for this UDC are not hard-coded. Examples include:

Differed Flag (UDC Table 75I/FD)

You enter values from this UDC table when you work with the Relation Landed Costs to Tax Regime / Tax Type program (P75I007).

The values for this UDC are hard-coded. Verify that these codes exist in your system:

See Setting Up Level Costs for Combinations of Tax Types and Tax Regimes.

Form Codes For Sales Tax (UDC Table 75I/FS)

You enter values from this UDC table when you assign form types to purchase orders with the Purchase Tax Update program (P75I4131).

The values for this UDC are not hard-coded. Examples include:

See Updating Purchase Taxes for Purchase Vouchers.

Tax Regime (UDC Table 75I/GR)

You enter values from this UDC table when you work with tax groups in the Relation Tax Reg/Tax Type Inf program (P75I005).

The values for this UDC are hard-coded. Verify that these codes exist in your system:

See Assigning Tax Types to Tax Regimes.

Tax Type (UDC Table 75I/GT)

You enter values from this UDC table when you work with tax groups in the Relation Tax Reg/Tax Type Inf program (P75I005).

Some values for this UDC are hard-coded, whereas others are not. Verify that these codes exist in your system:

See Assigning Tax Types to Tax Regimes.

Head of Account (UDC Table 75I/HA)

The values for this UDC are not hard-coded. Examples include:

Item Attribute (UDC Table 75I/IA)

You enter values from this UDC table when you work with the Service Tax Category Codes Mapping program (P75I009).

The values for this UDC are hard-coded. Verify that these codes exist in your system:

Landed Costs for Tax on Tax (UDC Table 75I/LC)

You enter values from this UDC table when you work with the Landed Cost Selection program (P43291).

The values for this UDC are not hard-coded. Examples include:

See Setting Up Landed Costs.

Teens (UDC Table 75I/NN)

The values for this UDC are not hard-coded. Examples include:

Processed Flag (UDC Table 75I/PF)

You enter values from this UDC table when you work with the Purchase Order Receiver Tag File (P75I008) and Landed Cost Browse (P75I091) programs.

The values for this UDC are hard-coded. Verify that these codes exist in your system:

See Reviewing Landed Costs.

See Updating Purchase Orders in India.

Recoverable Flag (UDC Table 75I/RF)

You enter values from this UDC table when you work with the Relation Landed Costs to Tax Regime/Tax Type program (P75I007).

The values for this UDC are hard-coded. Verify that these codes exist in your system:

See Setting Up Level Costs for Combinations of Tax Types and Tax Regimes.

RG23D Excise (UDC Table 75I/RG)

Set up values in this UDC table for RG23D excise.

The values for this UDC are not hard-coded. Examples include:

Tax Authorities (UDC Table 75I/TA)

You enter values from this UDC table when you work with the Tax Registration Details program (P75I210).

The values for this UDC are not hard-coded. Examples include:

See Setting Up Tax Registration Details.

TDS Group (UDC Table 75I/TG)

You use values from this UDC table when you run the Bank Challan Update program (R75I104A), print TDS 16 A Certificate (R75I110A), and print statement reports.

The values for this UDC are not hard-coded. Examples include:

See Assigning Tax Types to Tax Regimes.

Tens (UDC Table 75I/TN)

The values for this UDC are not hard-coded. Examples include:

Excise Transaction Type (UDC Table 75I/TT)

You enter values from this UDC table when you work with excise units with the Excise Setup Master Maintenance program (P75I301).

The values for this UDC are not hard-coded. Examples include:

See Entering Excise Unit Setup Details.

TDS Type (UDC Table 75I/TY)

You enter values from this UDC table when you work with the TDS Certificate Master Maintenance (P75I100) and A/B Additional Tax Information (P75I010) programs.

The values for this UDC are not hard-coded. Examples include:

See (IND) Working with Vouchers for TDS and WCT.

Excise 4% (UDC Table 75I/XX)

The values for this UDC are not hard-coded. Examples include:

RG23 A1 Build (UDC Table 75I/23)

The values for this UDC are not hard-coded. Examples include:

Setting Up AAIs for India

This section discusses how to set up standard software automatic accounting instructions (AAIs) for India.

Setting Up Standard Software AAIs for India

This table describes the AAIs that you must set up to use functionality for India:

Setting Up India-Specific Next Numbers

This section discusses how to set up India-specific next numbers.

See Also

Setting Up Next Numbers for Legal Documents

Setting Up Next Numbers for TDS

You must set up a next numbering scheme to number tax deducted at source (TDS) certificates. Set up next numbers by the company and fiscal year for each TDS group. TDS groups must be set up as document types in UDC table 00/DT and must have the suffix %. For example, you might set up a document type of R% for a TDS group for rents.

Mapping Business Units to States

This section provides an overview of the mapping of business units to states and discusses how to map a business unit to a state.

Understanding the Mapping of Business Units to States

Use the State / Business Unit Cross Reference program (P75I2139) to map business units to a state. A business unit cannot be associated with more than one state. However, a state can have more than one business unit associated with it.

Forms Used to Map Business Units to States

Mapping a Business Unit to a State

Access the State / Branch Plant Revisions form.

State	Enter a user-defined code from UDC table 00/S to specify the origin state for the shipment. Examples are: AP: Andhra Pradesh KA: Karnataka Note. The system populates the Origin State Desc field with the description that exists in the UDC table.
Business Unit	Enter the number of the business unit to associate with the selected state. You create cross-references between states and business units to conduct interstate stock transfers.
Origin State Desc	Displays the description from user-defined code (UDC) table 00/S.
Business Unit Desc	Displays the description from the Business Unit Master table (F0006).

Assigning Tax Types to Tax Regimes

This section provides an overview of the relationship between tax types and tax regimes and discusses how to assign a tax type to a tax regime.

Understanding the Relationship Between Tax Types and Tax Regimes

You use the Relation Tax Reg/Tax Type Inf program (P75I005) to specify tax types for tax regimes. You can enter multiple tax types for a tax regime, but the combination of tax type and tax regime must be unique. If it is not unique, the system displays an error message. You also use this program to set up a rounding value for each tax type and tax regime combination.

The system stores the tax type and tax regime information in the Tax Groups table (F75I005).

Forms Used to Assign Tax Types to Tax Regimes

Assigning a Tax Type to a Tax Regime

Access Add/Update Tax Groups form.

Tax Regime

Enter the India tax regime from UDC table 75I/GR that is assigned to the selected tax type. Examples are: EXC: Excise Duty OCT: Octroi CUST: Custom Duty

Tax Type

Enter a user-defined code from UDC table 75I/GT that identifies a tax type that is associated with the adjustment. Values are: AED: Additional Excise Duty BED: Basic Excise Duty CESS: Education Cess CVD: Counter Veiling Duty INTR: Interest - TDS CVDCS: Education Cess - CVD FRT: Freight OTHR: Other - TDS PF: Packaging & Forwarding SED: Special Excise Duty ST: Service Tax STCS: Education Cess - ST SUR: Surcharge TCS: Tax Collected at Source TDS: Tax Deducted at Source TOT: Turn Over Tax VAT: Value-added Tax

Entering Details for Price Adjustments

This section provides an overview of price adjustments, lists a prerequisite, and discusses how to enter a tax type and tax regime for a price adjustment.

Understanding Price Adjustments

You use the Relation Adjustment Name / Tax Type program (P75I006) to enter the tax type and tax regime for a price adjustment name. You can have only one tax type and tax regime for an adjustment name. The system displays an error message when you try to create a duplicate entry with the same name.

The system stores the tax type and tax regime for an adjustment in the O2C Tax Set up table (F75I006).

The India Localization system uses the price adjustment name for the advanced pricing calculation routine to determine which adjustment is a tax and which landed cost has the same tax type as the adjustment.

Prerequisite

Before you complete the task in this section, verify that the adjustment name is set up in UDC table 40/TY.

Forms Used to Enter Details for Price Adjustments

Entering a Tax Type and Tax Regime for a Price Adjustment

Access the Update Details -O2C Tax Setup form.

Adjustment Name	Enter a user-defined code from UDC table 40/TY that identifies an adjustment definition. Examples are: REBATE: Rebate Accrual E1: Excise Tax 1 0ABATE: Abatement tax
Tax Type	Enter the type of tax from UDC table 75I/GT that is assigned to the adjustment. Values are: AED: Additional Excise Duty BED: Basic Excise Duty CESS: Education Cess CVD: Counter Veiling Duty INTR: Interest - TDS CVDCS: Education Cess - CVD FRT: Freight OTHR: Other - TDS PF: Packaging & Forwarding SED: Special Excise Duty ST: Service Tax STCS: Education Cess - ST SUR: Surcharge TCS: Tax Collected at Source TDS: Tax Deducted at Source TOT: Turn Over Tax VAT: Value-added Tax
Tax Regime	Enter the India tax regime from UDC table 75I/GR that is assigned to the selected tax type. Examples are: EXC: Excise Duty OCT: Octroi CUST: Custom Duty

Setting Up Level Costs for Combinations of Tax Types and Tax Regimes

This section provides an overview of P2P excise setup and discusses how to set up level cost for a combination of tax type and tax regime.

Understanding the P2P Excise Setup

You use the Relation Landed Costs to Tax Regime / Tax Type program (P75I007) to set up level costs for Indian taxes in the procure-to-pay (P2P) cycle. In this program, you add the level cost for a unique combination of tax type and tax regime. You can also use the Tax P2P Setup form to update existing level costs in the Tax Setup P2P table (F75I007). The Relation Landed Costs to Tax Regime / Tax Type program also performs an update to the Assign Price / Cost Elements table (F75I421).

Forms Used to Set Up Level Costs for Indian Taxes

Setting Up a Level Cost for a Combination of Tax Type and Tax Regime

Access the Tax P2P Setup form.

Level Cost	Enter a user-defined code from UDC table 40/CA that designates the add-on cost. This code also specifies the sequence of the cost add-ons for a particular item or group of items. Examples are: 2: Packing and forwarding charges 3: Excise Duty 4: Education CESS 2%
Recoverable	Enter a user-defined code from UDC table 75I/RF to indicate whether the tax type is recoverable. Values are: N: Not Recoverable Y: Recoverable
Deferred	Enter a user-defined code from UDC table 75I/FD to indicate whether the tax type is deferred. Values are: N: Not deferred Y:Deferred

Setting Up Tax Registration Details

This section provides an overview of tax registration details setup and discusses how to enter tax registration details.

Understanding the Tax Registration Details Setup

You use the Tax Registration Details program (P75I210) to enter the tax registration details for an address book record, such as a business unit, customer, or supplier.

You obtain the tax registration details for the address book record from the local tax authorities.

The system stores the tax registration details in the Tax Registration Details (F75I210) and Tax Registration Details Tag File (F75I211) tables.

Forms Used to Enter Tax Registration Details

Entering Tax Registration Details

Access Add/Update Tax Registration Details form.

Tax Information

Other Details