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 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 is listed in the Customs Authority field list of values on the Bill of Entry India Localization window.
It would be a prerequisite to define a BOE Agent before you do a Bill of Entry transaction. Navigate to the Payables Setup and define the Clearing and Forwarding agent information. The Agent Codes would appear in the list of values for Agent Code on the Bill of Entry window.
The existing window has been modified to capture Additional TDS Information.
You capture TDS Vendor Type value for the vendor at the NULL Site Level.
Enter PAN for the Vendor for TDS Details.
Confirm PAN by checking the Confirm Pan option. Once selected, the record is saved. You cannot modify the PAN for the Vendor.
Enter default TDS Section Code value in the Default TDS Section field. The Tax Name value can be given only for the Site Level record. Even though the Tax Name is attached, the system does 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 are defaulted. Indicate if this is an exception setup or not.
Steps to be followed in defining Additional Vendor Information:
Open the Additional Vendor Information window.
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 option.
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 you cannot 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, you must enable the check box Confirm Pan and then save the record.
Once the Null Site record is saved, requery the record and select the value for the field Default TDS Section and save the record. 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, select the site value from the list of values of the Site field. Save the record. Then, click TDS Details and save all the values defaulted from the NULL Site record.
Once the Site Level record is saved, 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. Therefore, entering and confirming PAN is mandatory. Ensure that you 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:
Company-IND
Individual-IND
Other Persons-IND
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.
Navigate to Suppliers - Additional Information window, using India Local Payables - India Localization - Suppliers - Additional Information.
Displays Name of the Vendor defaulted from the Supplier Additional Information window.
Displays Vendor Number defaulted from the Supplier Additional Information window.
Displays Vendor Site name defaulted from Supplier Additional Information window
Displays Vendor Type defaulted from the Supplier Additional Information window. This is not applicable for the TDS Functionality.
Invoice Approval Region
Select the, Create Pre-Approved TDS Invoice Credit Memo, to generate pre-validated TDS Invoices and Credit Memos.
TDS Information Region
Enter or select the TDS Vendor Type.
Enter or select the PAN Number of the Vendor.
Enter or select the TAN Number of the Vendor.
Enter or select the Ward Number of the Vendor.
Check the Confirm PAN of the Vendor.
TDS Details Region
Default TDS Region
Select a default Tax Name as the code . You can select the value 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 you wish to deduct the TDS based on the TDS Thresholds setup, then do not attach any TDS Tax Code value. The value of the TDS Tax Code is picked up from the TDS Thresholds setup for a specific Operating Unit.
Displays the Section Type under which Threshold setup has been made.
Displays the Section Code under which Threshold setup has been made.
Displays the Threshold Setup Name that has been setup for the selected vendor.
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:
Parameters:
Enter or select the Vendor Name for which, the user wants to modify the value of PAN Number.
Enter or select the value of Old 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.
Invoice created that does not reach the Threshold (Single/Cumulative). No TDS Invoice is generated.
Invoice created that reaches Single Invoice Threshold. TDS is deducted based on the Tax Code applicable for Single Invoice Threshold.
Invoice created that reaches Cumulative Invoice Threshold. TDS is deducted based on the Tax Code applicable for Cumulative Invoice Threshold. Adjustment Invoice is generated based on tax already deducted, if any.
Create Invoice with 2 distribution lines and for each line, TDS Tax belonging to a different section is attached. System generates the TDS Invoices, based on the Threshold setups of that particular Section and Vendor Type.
Standard Invoice is created. In the Invoice Distributions GDF, TDS/WCT/ESI taxes are attached in all the segments (3 segments). System generates 3 TDS Invoices on validation of Standard Invoice for each of the segment.
Standard Invoice having TDS/WCT/ESI Invoice is cancelled. TDS/WCT/ESI Invoice is cancelled.
Standard Invoice with one negative distribution line and one Positive Distribution line, and the same TDS Tax is attached to both the distributions. System generates the TDS Invoice for both the lines.
Create a Standard Invoice in foreign currency and validate the same. System generates the TDS Invoice and Credit Memo in functional currency.
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 applies to all the Invoices generated during the year.
TDS Threshold calculations by manually updating the Total Threshold Invoice amounts in the Manual Thresholds window.
A PO matched Invoice for 2 item lines. System generates the TDS Invoices based on the current Thresholds.
A Receipt matched Invoice for 2 item lines. System generates the TDS Invoices based on the current Thresholds.
Creation and validation of a prepayment Invoice. System generates TDS Invoices based on the current Thresholds.
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 generates 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 is generated by the system in lieu of the TDS generated for the Prepayment Invoices. Adjustment and reversal entries are generated by the system for the TDS deducted on Prepayment.
Unapply the prepayment invoice on the standard invoice. When prepayment invoice is applied to a NEVER VALIDATED standard Invoice.
Reversal of the above point (point no. 14).
Apply the Prepayment invoice having the TDS invoice to the Validated standard invoice having the TDS Invoice. System generates RTN invoice for Vendor and CM for the TDS Authority.
Unapplication of prepayment of invoice on to a VALIDATED Standard Invoice. System generates a RETURN Invoice for the TDS Authority and Credit Memo for the Vendor.
Note: Works Contract Tax (WCT) and Employee State Insurance (ESI) deductions are implemented only as a work-around. There is no support for any reporting for these taxes.
Navigate to the Enter Transaction India Localization window from India Local Order Management > Customers > Additional Information or from India Local Order Management > Customers > Additional Information.
Enter or select the Operating Unit for the Customer Additional Information.
Select the Customer Name and Site from the list of values for which the Additional Information regarding tax is defined. The Customer Number defaults and the Customer Site is selected from list of values. The Customer Additional Information is defined for a location also and this is treated as location NULL.
Note: Additional Customer Information is recorded in the system when you save the Customer Information.
Select the Exempt option if the Customer is exempted from GST.
GST Tab
State Tax Region
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.
Specify the GST Registration Number applicable to the Customer, Customer Site.
Select from the list of Price Lists for Assessable Value. The price specified in the list here would replace the Line Amount while calculating GST Taxes.
GST Region
Select or enter the Customer GST Registration Number.
Income Tax Region
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.
Select or enter the Item Category List from the list of values. 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.
There are 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 GST Act, specifies that if there is any other consideration built up in the price, GST Duty needs to be worked out on the normal transaction value of the goods.
There are cases, where GST Duty or GST Tax must be calculated on a different 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 and or Customer Site, first system checks whether any Assessable Value list is attached for the Customer for the Item or Item Category under transaction. If there is any Assessable Value attached to the Customer for the Item or Item Category, the GST Duty is calculated on the Assessable Price List and not based on the line price.
If no Assessable Value is defined for a Customer, Item, or Item Category, GST Duty is 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 GST Duty, you must attach the price as Assessable Value. The price that needs to be considered for calculating GST Duty / GST 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.
Navigate to the Tax Defaults window using 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.
Context Tab
Enter or select a context name.
Define the tax Category.
If this is selected, then tax category is assigned to all the context values in the lines section where the tax category is empty. This does not override the current tax categories for any of the context values.
If this is selected, then Tax Category is assigned to all the context values in the lines section. This overrides the current tax categories for any of the context values.
Select or enter the appropriate context name for which you want to assign a tax category.
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.
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.
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.
Preferences Tab
Displays the distribution rules as per the Project Billing setup.
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.
You can enter any unique number for a combination of Distribution Rule and Context Name. This preference number will determine the tax defaulting hierarchy.