REQUIREMENTS

Populating Masters
1. Assessee master
2. Premises details legal entity & details
3. List of applicable services
4. GL accounting codes
5. Vendor master
6. Contract master
7. Inputs and outputs masters
8. Opening balance for registers
9. Exception cut-off points
10.Defining mapping of each type of document

Service Tax Demonstration

Data & Image Upload

1. Input and Output invoice data feed in flat file formats downloaded from
client accounting system / ERP at agreed upon intervals and uploaded to
MTS
2. Scanned images of input invoices to be uploaded for data mapping and
completion purposes
3. Payments
4. Collections
5. Debit/Credit Notes

Data & Image Mappings

1. Input Invoices
2. Output Invoices

Level 1 Exceptions
1.
2.
3.
4.

Image not available / Image cannot be mapped

Mismatch in invoice value wrt line items
GL accounting code in data feed not defined in MTS
Payment / collection data feed without corresponding invoice numbers

Level 2 Exceptions
1. Unidentified transactions / data element (new service category, new
vendor / contract etc.)
2. Errors due to mismatched parameters defined in masters versus those
received in data fields (change in stand on taking abatement / rebate
claims)

Data Cleansing and Validation

Basic data integrity
Tax Calculation per the applicable tax rate
Capture of all requisite data points
Capture of form requirements at the transaction level

Exception Handling
Exception Level 1 for basic exception check
Exception Level 2 for tax position and master related exception check

Exception Report
Exception report to be provided by the system, Exceptions can only be
overridden with adequate access rights.
Exception report having detail of invalid transactions is generated
Exceptions are either resolved by correcting the source data or by way of
overriding the exception in both cases an audit note is required for disposing
off the exception

Computing Tax Liability

Once exceptions have been resolved, the system performs the period end
calculation by applying
a. Service Tax Laws; and
b. Stated Tax positions
To every transaction; thereby ensuring that every transaction in the books
of account is in
sync with the numbers filed with the department

VAT Demonstration

Data Upload
The following transaction details are required for upload into KORE Tax:

Input Invoices

Payments

Output Invoices

Collections

GRN details

Tax Deducted at Source Certificate details

Debit/ Credit Notes

GL Accounting data (other than invoices)

Data Validation
Once the data has been uploaded; it is automatically verified for the
following:

Basic data integrity

Tax Calculation per the applicable tax rate

Capture of all requisite data points

Capture of form requirements at the transaction level

Once the data has passed the aforesaid test; it is further validated for
meeting the tax positions defined for the organization (in the masters)
These exceptions are handled by a group of experts within BMR and are
resolved in conjunction with the client

Exception Report
Exception report having detail of invalid transactions is generated
SPOC at the client side is contacted for resolution of the exceptions , if
required
Exceptions are either resolved by correcting the source data or by way of
overriding the exception in both cases an audit note is required for
disposing off the exception

Processing
Once exceptions have been resolved, the system performs the period end
calculation by applying
a. State Laws; and
b. Stated Tax positions
To every transaction; thereby ensuring that every transaction in the books
of account is in sync with the numbers filed with the department

Tax Liability Computation

After the transaction data has been processed, the system automatically
computes the tax liability
This is done by netting off
a. Input tax credit to be utilized (as desired by the client); and
b. Tax Deducted at Source benefit to be claimed during the period
The system distributes Input Tax Credit (ITC) to be utilized towards VAT,
CST and Purchase Tax Liability based on the rules configured in the
masters
Any unutilized ITC can be either carried forward or claimed as a refund as
per the relevant state rule

Statutory and MIS reports

Along with the computation for liability; the system also generates the
following, which are sent to the client for review:

Sales Register

Purchase Register

Debit Note/ Credit Note Registers

Liability Report (VAT, CST, Entry Tax)

ITC

ITCR

Tax Deducted at Source payable/ receivable report

Arrears report

Tax Payment Advice & Return

 Similar to the other reports, the system also generates a signature ready
tax payment advice & separate returns for VAT, CST and Entry Tax