Regime would be used to define rules that would be applicable to all Taxes assigned to it. You need to complete this setup step before you move ahead with other setups.
Setups made for a regime would be applicable to all transactions created from the organizations assigned to it. Information defined here would be generic unless you assign different properties at an organization level.
To create a Service Tax Regime, access Regime Registration screen from the following navigation path.
Regime Registration Details should include assigning Tax Types, Tax Accounts and Organizations to the respective Tax Regime.
India Local Purchasing - India Service Tax - Setup - Regime Registrations.
On a regime, you would define rules that would be applicable to all transactions created from the organizations assigned to it. Information defined here would be generic unless you assign different properties at an organization level.
Organizations have to register with the various Service Tax Authorities. The registration would be the basis for all recovering credit on input Tax, settling tax liability and Tax Reporting.
Service Tax Types have to be assigned to the service tax regime. All transactions with taxes of these Tax Types assigned would be considered for service tax repository updates. The following three tax types have been seeded and can be used for service tax:
Service Tax
Service Tax Education Cess
ST SHE cess
You cannot add additional Tax types for Tax definition and need to use only the seeded Tax types. You can assign service tax types to service tax Regime. Transactions for the Tax Types that are assigned to the regime will be considered for service tax related processing and settlement. For each Tax Type, the user can also specify GL Accounts. You can change these accounts for each organization.
To assign service tax types, access Regime Registration screen from India Local Receivables > India TCS/VAT/Service Tax > Setup > Regime Registrations > Tax Types.
For each Tax Type, you can specify GL Accounts and also have a separate GL Account for each organization. To assign GL Accounts for Tax Types, access Regime Registration screen from India Local Purchasing > India TCS/VAT/Service Tax > Setup > Regime Registrations > Tax Types > Tax Account Details.
| Field Description | Description |
|---|---|
| Regime Registration Details block | |
| Tax Types tab | In this section of the screen Tax Types and the accounting information related to this regime are setup. |
| Sequence | This is the sequence number of the tax types to be captured. |
| Tax Types | You should associate all three tax types - Service Tax , Service Tax Education cess and ST SHE cess. |
| Description | Displays the description of the Tax Type |
| Parent Tax Type | Parent Tax Type is not applicable for Tax collected at source. |
| % of Parent | % of Parent is not applicable for Tax collected at source. |
| Tax Accounts Details block | Accounts that are going to be used for accounting of Tax Collected at Source are specified here. |
| Sequence | This is the sequence number of the Account to be captured. |
| Choose from Interim Liability Account and Liability Account.
Note: Refer Accounting section for detailed discussion on the accounts. |
|
| Account Value | Pick accounting flex fields for each of the account. |
The Customer Tax Information windows includes the Service Tax Registration Number where you enter the customer service tax registration number.
The Supplier Tax Information window allows you to include the service tax registration number.