Oracle India Localization User Manual

Oracle India Localization

User Manual

Amendment History

Date Change Description Section / Page Changed By Reviewed By Approved By

21-Oct-2008

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USER MANUAL
Oracle India Localization User Manual

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Preface

This document provides you with all the information required to

use Oracle Human Resource Management effectively. It is
drafted for fast, easy access to detailed information about
Oracle Management and supporting India Localization Tax
Processes.

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How the Document is organized

Within each Chapter of this document, the following aspects are covered. These
are:
 The processes and procedures
 The responsibilities
 The input required
 The outputs expected

Scope of this Document

The document covers the complete Tax procedures associated with India Localization process.
Tax processes are initiated to record the different Tax related Activities Procedures are repeated on a daily
and periodic basis to ensure up to date records of all activities.
The process is supported by a number of initial and sub-process activities. The activity includes the following

Audience and Roles

This manual is written for TBM staff of the Tax Department.

Other Information Sources

Oracle provides documentation, training and support services to help make the Tax procedures easy for you
to use and understand. The following related documentation could be used for further information

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Oracle Applications User’s Guide and Library

This manual tells you everything you need to know about entering data, querying, running reports and other
basis features of Oracle Applications. A soft copy is installed and available.
Oracle Implementation Guides
These guides include modular implementation flowcharts and checklists to assist with the project planning.
They contain a summary of the sequence of recommended steps for implementing Oracle HRMS.
Oracle Applications Flexfields Guide
This guide provides Flexfields planning, set-up and reference information for the Oracle Applications
implementation team and those responsible for the ongoing maintenance of the Oracle Applications product
data. It also explains how to create custom reports on flex field data.
Oracle Applications Installation Manual
This manual provides information you need to successfully install Oracle Applications in the specific hardware
and operating system software environment.
Oracle Help
Oracle Help is available within the application to provide context sensitive information.
Training
BSIL offers a complete set of formal training courses to help you and the staff fully understand Oracle
Applications.

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Contents

Preface...................................................................................................................................................3
How the Document is organized........................................................................................................4
Scope of this Document.....................................................................................................................4
Audience and Roles...........................................................................................................................4
Other Information Sources................................................................................................................4
C H A P T E R 1 Tax Master Set Up.........................................................................................7
TAX MASTER CREATION.................................................................................................................8
TAX CODE.......................................................................................................................................8
TAX CATEGORY............................................................................................................................9
ITEM CATEGORY.........................................................................................................................10
UPDATE TAX CATEGORY..........................................................................................................11
SUPPLIER ADDITIONAL (TAX) INFORMATION........................................................................12
CLAIM CENVAT ON RECEIPTS.................................................................................................14
TAX DEDUCTED AT SOURCE.......................................................................................................16
PERIOD END PAYMENTS TO INCOME TAX AUTHORITY......................................................19

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CHAPTER

1 Tax Master Set Up

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TAX MASTER CREATION

Before Tax Code creation user needs to identify the Inventory Organization under which the Tax
Codes to be created.

TAX CODE

In Tax Master, user has to mention:

Tax Name – Name of the tax to be self – explanatory and easier for user to pick
Tax Type – Tax Type determines the tax treatment for all future transactions
Tax Account – GL Account Code will get accounted on every transaction
Percentage – Tax Rate based on which tax will be calculated
Credit Percentage – It implicated the % of credit to be attained
Form Name – Tax Codes of Sales Tax, VAT etc where different Forms are required
Original Tax Percent – This implicates the Original Tax Percent if Forms are not used

Navigation
Inventory India Localization – Setup – Tax Setup- Taxes

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TAX CATEGORY

Since Tax Codes are created, user can create a Tax Category which will group the required Taxes so
that such category can be attached to each item. As a result, while creating transaction of such item
this tax category will get defaulted.

Navigation
Inventory India Localization – Setup – Tax Setup- Tax Category

Here, Tax Name is the Tax Codes created in the Tax Master. Then based on the logic of calculation
required in the transactions, user will define the precedence format for the group of taxes. For
example, 0 value means the Base Material Value in the transaction and 1 means line 1 which is
Customs Duty @10% here, 2 means line 2 which is CVD @14% and so on.

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ITEM CATEGORY

Once the Tax Categories are defined, user will create an Item category and attach the tax category to
the respective items.

Navigation
Inventory India Localization – Setup – Tax Setup- Item Category

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UPDATE TAX CATEGORY

In case the user requires to change the Tax Code from Old to New tax code effective from a back
date, this form of ‘Update Tax Categories’ to be used.

Navigation
Inventory India Localization – Setup – Tax Setup- Update Tax Category

Then Click on ‘New’

Here user can assign multiple item for each Organization.

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SUPPLIER ADDITIONAL (TAX) INFORMATION

Before any pass transaction is passed, the Supplier additional Information related to the tax details.
This has to be created for Supplier without any site (Null site) as well as with Site. Here we are
defining additional information without site first.

Navigation
Payables India Localization – Suppliers – Additional Information

Here, the Excise Block is to define excise related details of the supplier. In the Sales Tax Block the
CST and LST details has to be filled in. Same way VAT and Service Tax Block has to be filled in.
Then click on TDS Details to fill in Income Tax details of the supplier.

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Here, put the PAN No and TAN no of the supplier and click on ‘Confirm PAN’. PAN No of the
supplier is compulsorily to be filled. Unless PAN No is created, the system will not allow to save the
TDS details of the supplier.

Once PAN No is filled and the details are saved system will by default return the TDS section types
and TDS section codes.

Next, query the supplier and add the supplier as shown here and save it. This will automatically copy
the same data filled in before (At Null Site level).

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CLAIM CENVAT ON RECEIPTS

In order to claim CENVAT / MODVAT on receipts, user has to use following window:

Navigation
Purchasing India Localization – Receipts – Claim MODVAT on receipts

In BOE Details you will first fill the item details and then start filling the PO transaction values and
tax rates. It starts with Basic Customs Duty.

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RG REGISTERS

Register Balance View:

RG 23A/C Transactions View:

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TAX DEDUCTED AT SOURCE

TDS Taxes are to be define as per sections and income tax regulations

TDS Threshold Setup: TDS threshold setups are to be done for new sections and threshold type of
single, cumulative. These threshold setups are unique for following combination:

1. Vendor Type (Company, Individual, HUF etc)

2. TDS Section (194C,194J etc)
3. Threshold Type (Single, Cumulative)

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Once the Income Tax details of the supplier is defined, user can start createing Invoice by deducting
TDS. User will create the Invoice following the Normal process and fill the actual Invoice amount
(without deduction) in the system.

Navigation
Payables India Localization – Invoice - Entry – Invoices

While filling up the distribution lines of the Invoice, user will fill the Descriptive Flex field
(Additional Details in Oracle Term) at the end of the distribution line. User can select the TDS Code
as the TDS Section which will be accessible while selecting the Code.

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Once you complete the Invoice, save it and validate it by following the normal process.
This will automatically populate one credit memo for the supplier for equal amount of TDS to adjust
the Supplier balance and a Standard Invoice in favor of Income Tax Authority equal to the TDS
amount.

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PERIOD END PAYMENTS TO INCOME TAX AUTHORITY

Navigation
India Localization Payables – India TDS Challan

User will record the challan details of payment to Authority.

It will record the Cheque Number, Chque date, Challan Number of Payment made and Bank where it
is submitted.

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TDS Certificate Generation:.

Run the following Processes sequentially

1. India – Process TDS Payments

2. India – Generate TDS Certificates
3. Indis – TDS Certificates

Navigation
Payables - View – Request – Submit a New Request

Fill the Parameters in the following manner to process TDS Payments

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VALUE ADDED TAX (Claim)

If VAT is attached in PO, then at the time of MRN VAT input credits are in unclaimed state

India Local Payables  India TCS/VAT/Service Tax  Transactions - VAT - Claim

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VAT Returns

To submit VAT returns run the following report

India – VAT Returns Report

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