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WHITE PAPER

Service Tax Functionality


in Financials for India

Prepared by

Author: Krishna Surapaneni –Financials for India


Support
Creation Date: 26-May-2008
Last Updated:
Control Number: 1
Version: 1
Copyright (C) 2008 Oracle Corporation
All Rights Reserved
Product Design and Architecture

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1. SCOPE............................................................................................................................3
2. INTRODUCTION .........................................................................................................4
3. OVERVIEW...................................................................................................................5
4. SETUP.............................................................................................................................6
4.1 REGIME REGISTRATION...................................................................................................6
4.1.1 Service Tax Registration.....................................................................................6
4.1.2 Assigning Tax Types...........................................................................................7
4.1.3 Assigning Organizations................................................................................8
4.2 CUSTOMER ADDITIONAL INFORMATION............................................................................11
4.3 SUPPLIER ADDITIONAL INFORMATION..............................................................................12
5. SIGNIFICANCE OF SERVICE TYPE.....................................................................14
5.1 WHAT IS ‘SERVICE TYPE’..............................................................................................15
5.1.1. INCLUSION OF SERVICE TYPES....................................................................................17
5.2 SERVICE TYPE REVIEW DURING PERIOD END............................................18
5.3 ACCOUNTING REVIEW.......................................................................................20
6. SERVICE TAX ACCOUNTING................................................................................21
6.1 ACCOUNTING ENTRIES......................................................................................22
6.2 SERVICE TAX ACCOUTING PROCESS.............................................................25
7. SERVICE TAX DISTRIBUTION..............................................................................26
8. SERVICE TAX MANUAL ENTRY..........................................................................29
9. SERVICE TAX SETTLEMENT................................................................................30
10. REPORTING.............................................................................................................33
10.1 INDIA SERVICE TAX REPORT.........................................................................................33
10.2 INDIA SERVICE TAX CREDIT REGISTER REPORT................................................................34
10.3 INDIA SERVICE TAX PENDING LIABILITY REPORT............................................................35
10.4 INDIA SERVICE TAX PENDING RECOVERY REPORT..............................................................36
10.5 INDIA SERVICE TAX ST3 REPORT..................................................................................37

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1. SCOPE

This paper is intended for an audience familiar with Oracle Financials for India and seeking an
insight into how the new functionality of Service tax regime is built to cover the statutory
requirement in India.

This paper is functional in nature keeping in sight Oracle’s existing literature that has adequate
details on the technical aspect of the Oracle Financials for India, though adequate insight is given
to the table level details relevant to the topic. This is more so, in the light of the diagnostic scripts
avaialble in metalink note # 402711.1, thus making table level details easily accessible to the
user. Thus we have tried to handle the topic from the available functionality as well as the data
perspective level.

To prevent this document from becoming too bulky, and also to maintain focus throughout the
paper, the scope of this paper is limited to the basic set up need for defining the Service tax
regime, factors to be kept in mind while defining the Service tax regime, Transaction flow and the
reports available. It is assumed that the audiences are aware of the basics of Financials for India,
as only the behavior peculiar to Service tax regime is handled in the paper.

This document is intended to be supplementary in nature and does not in any way, purport to be
a substitute for any official literature being drafted or currently published.

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2. INTRODUCTION

Taxes in India are classified as Direct and Indirect taxes. Direct taxes are those taxes whose
impact will be borne directly by persons. Income tax and Wealth tax are the examples of Direct
taxes where levy and recovery will be from the persons directly. Indirect taxes are those taxes
whose burden can be passed on to the Buyers of goods and services. For example, Excise taxes
are levied on the manufacturers, however, that taxes portion will be recovered from the buyer of
goods as part of the price. Similarly Service tax is levied on the service provider whereas the
service provider passes on the burden to service receiver.

Finance Act, 1994 introduced the levy of tax on Services rendered, hereafter referred as Service
tax in India. Initially service tax was imposed on 3 services and the scope is being widened every
year. Service tax solution was developed by Oracle Financials for India to meet the statutory
requirements in India. Hence features provided in the product are based on the provisions of the
Finance act, as amended from time to time and the service tax credit rules framed by the
statutory authority.

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3. OVERVIEW

Initially Service tax functionality has been provided in Oracle Financials for India through
patch # 4239736. This was referred as Service tax by operating units patch as the
fucntionality was delivered at operating unit level. Later on the functionality was enhanced to
deliver the functionality of service tax distribution at inventory organization level and includes
the feature of service type as well. This functionality has been delivered through patch #
6166691 and the same fixes have been included in Budget 2007 patches (6003048 or
6079248 or 6167056. It may be noted that the first two patches mentioned here are
superceded by patch 6167056). Hence if patch # 6167056 is applied, then the latest Service
tax functionality would be available, even though patch # 6166691 is not applied.

Major features of Service tax functionality provided in the Oracle Financials for India are
mentioned below:

a) Defining Service tax regime and the registration details of the Organization.
b) Definition of Service tax type codes, as applicable.
c) Definition of rules for accouting for Service tax.
d) Provision to default the Service type applicable for Suppliers/Customers.
e) Provision to distribute the service tax credit available across inventory organizations.
f) Facilitating the settlement of Service tax liability.
g) Provision to maintain and view the Service tax repository.
h) Reporting requirements with respect to Service tax.

The above-mentioned functionalities are explained in detail in the relevant sections below. It
may be noted that the functionalities mentioned in this note are available as of the date of
publicaiton of this note and might change based on the amendments made in the relevant
statutes.

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4. SETUP

4.1 Regime Registration

Regime would be used to define the registration details of the organization and rules that would
be applicable to all taxes assigned to it. Following figure depicts the regime structure:

DEFINING SERVICE TAX REGIME

Define Regimes

Assign
Registrations Assign Tax Types
Orgnaizations

Assign Assign Tax


Organization Accounts
Accounts

On a regime, you will be able to capture the registration details of the Organization and rules that
would be applicable to the transactions created with service type of taxes. Information defined
here would be generic and would be applicable to all the organizations defined under this regime
unless changed at the Organization level.

4.1.1 Service Tax Registration


Organizations have to register with the various Service Tax Authorities. The registration would be
the basis for recovering credit on input Tax, settling tax liability and Tax Reporting.

Those registration details can be captured in the registrations tab as below:

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In the registrations tab, parameters relating to the Organization as a whole are defined such as
Registration number of the Organization, Jurisdiction under which the organization is falling etc.,
Also one important parameter which will drive the accouting on the event of service tax credit
distribution is “Service tax distribution in PLA/RG”. Based on the register name specified here,
Accounting and register updates will happen.

4.1.2 Assigning Tax Types

Service Tax Types have to be assigned to the Service Tax regime. This is a logical grouping of all
transactions to which these taxes are applicable. If the values assigned for a particular tax were
different, these would prevail over those defined for the regime.

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Under this tab, tax types applicable for this Service tax and account codes applicable can be
assigned. Currently Education cess and Secondary higher education cess are also leviable on
the Service tax amount.

Account codes that will be used for accounting of Service taxes need to be specified in the tax
account details. As Service Tax is accounted on cash basis apart from final Recovery and
Liability Accounts, interim accounts have to be defined that will store the Service Tax which has
not been paid / received

4.1.3 Assigning Organizations

Regime has to be assigned to all organizations to which it is applicable. Taxes defined under this
regime would default only for these organizations.

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Under the Organization details, User will be able to assign the Inventory Organizations to which
the service tax regime is applicable. Also if an inventory organization is having multiple locations,
all those locations have to be assigned under this regime. Otherwise processing of Service taxes
will happen only for the assigned locations.

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Registration details, tax types assignment and the account values assignment can be assigned to
the Inventory organizations, if they are different from those assigned under the header level.
Otherwise the values will get defaulted from the header. Default checkbox will be checked
whenever default registration values at the regime level are retained. It gets unchecked when
registration value is modified.

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4.2 Customer Additional Information

To be able to make transactions in Order to Cash cycle, Customer additional information setup
need to be completed for those Customers from whom service tax amount will be recovered. In
this form, Service tax registration number and the Service tax type applicable for that particular
Customer needs to provided. If Service type is defined here, then it will be defaulted in the
transactions. Otherwise Users need to manually update the service type in the transactions.

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4.3 Supplier Additional Information

To be able to make transactions in Procure to pay cycle, Supplier additional information setup
need to be completed for those suppliers to whom service tax amount will be paid. In this form,
Service tax registration number and the Service tax type applicable for that particular supplier
needs to provided. If Service type is defined here, then it will be defaulted in the transactions.
Otherwise Users need to manually update the service type in the transactions.

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4.4 Tax code definition

In Tax code definition form, Service tax type codes can be defined and the same can be used in
the transactions. It has to be noted that Service tax codes have to be defined as recoverable
taxes by specifying the credit percentage as 100. Otherwise the accoutning will not happen as
mentioned in this document and those taxes will be considered for costing in Procure to pay
cycle.

Currently the following tax types are applicable for Service tax and the same have been provided
as seeded values in the tax type field:

a) Service tax
b) Education cess on Service tax
c) Secondary Higher education cess on Service tax.

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5. SIGNIFICANCE OF SERVICE TYPE

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5.1 What is ‘Service type’

Service tax is payable on the taxable Services as defined in varoius clauses of section 65(105) of
the Finance act 1994. Type of service is relevant for determining the amount chargeable for tax
and also to meet the reporting requirements under the act. Hence to capture the type of Service,
additional field ‘Service type’ has been provided in various forms. Currently the following service
types are chargeable to tax:

1 Actioneer's Service
2 Advertising Agency Service
3 Air Travel Agent
4 Airport Services
5 Architects
6 Authorised Service Station
7 Automated Teller Machine Operations, Maintenance or management services
8 Bank & Financial Services
9 Beauty Parlour
10 Broadcasting
11 Business Auxiliary Services
12 Business Exhibition Services
13 Business Support Services
14 C & F Agents
15 Cable Operator
16 Cargo Handling
17 Chartered Accountant (1-1500)
18 Cleaning Services
19 Club or Association services
20 Commercial or Industrial construction services
21 Commercial Training Coach
22 Company Secretary
23 Construction of Complex
24 Consulting Engineer
25 Convention Services
26 Cost Accountant
27 Courier
28 Credit / Debit card or other payment card services
29 Credit Rating Agency
30 Custom House Agent
31 Dredging Service of Rivers etc
32 Dry Cleaning Services
33 Eraction, Commissioning & Installation
34 Event Management
35 Facsimile Services
36 Fashion Designing
37 Foreign Exchange Broker
38 Forward Contract Services
39 Franchise Service
40 General Insurance Service
41 Health Club
42 Insurance Auxiliary Service
43 Intellectual Property Services
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44 Interior Decorator
45 Internet Cafe
46 Internet Telephony
47 Leased Circuits
48 Life Insurance
49 Life Insurance Actuary & auxiiliary services
50 Mailing List Compilation
51 Management Consultant's Services
52 Management, Maintenance & Repair
53 Mandap Keepers
54 Manpower Recruitment & Supply
55 Market Research
56 Online Information & data base access or retrival
57 Opinion Poll Services
58 Other port services
59 Outdoor Caterer's Services
60 Packaging Services
61 Pagers
62 Pandal or Shamiana Services
63 Photography
64 Port Services
65 Programme producer
66 Public relations management services
67 Rail Travel Agent Service
68 Real Estate Agent
69 Recovery Agent's Services
70 Registrar to an issue's services
71 Rent-A-Cab
72 Sale of Space or time for advertisement services
73 Scientific & Technical Consultancy Service
74 Security Agency
75 Share Transfer Agent's Service
76 Ship Management Services
77 Site Formation and Clearance
78 Sound Recording Services
79 Sponsorship Service
80 Steamer Agents
81 Stock Broker
82 Storage & Warehouse
83 Survey & Exploration of Minerals
84 Survey and Map making
85 Technical inspection and certification
86 Technical Testing and Analysis
87 Telegraph Services
88 Telephone
89 Telex Services
90 Tour Operator
91 Transport of goods by Aircraft
92 Transport of Goods By Pipeline
93 Transport of goods by Road
94 Transport of goods in container by rail service
95 Transport of passengers by air embarking in India during international journey
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96 Transport of persons embarking from india by cruise ship
97 Travel Agents
98 Under Writer R & D
99 Video Tape Services

The above-mentioned service types have been provided as seeded values in the lookup codes.

5.1.1. Inclusion of Service Types

It may be noted that the user in the application can manually add service types. The need for
addition of service types arises whenever Government of India added more services vide
inclusion in Finance Act. The same can be done using the below steps:

a) Navigate to Oracle Purchasing > Setup > Purchasing > Lookup Codes
b) Query with Type as JAI_SERVICE_TYPE
c) Click on New and specify the code, Meaning, description and effective from date.

By doing this, User will be able to select the new service types as well in the transactions.

Service type mentioned in the Supplier additional information and Customer additonal information
would be used to default automatically in transactions like Purchase Order and Receivables
transaction and Sales Order respectively. This defaulted value can be changed in those
transaction forms. If this setup is not carried out and service type is not mentioned even in the
transaction forms also, then Users will not be able to perform settlement.

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In Purchase Order localized form, as shown above, Service type got defaulted from the Supplier
additional information setup. Also the User can change this value. Similarly in Sales Order
localized form and Receivables transaction localized form also, User can change the defaulted
service type values. However service type cannot be changed when a RMA is created with
reference to Order or Invoice. In this case, Service type of the original order will get copied to the
RMA order and is shown in view mode only.

5.2 SERVICE TYPE REVIEW DURING PERIOD END

Option has been provided to capture the Service type for those transactions where it was either
not captured during the transactions or could not be captured for any reason. It is recommended
that before carrying out settlement, review need to be done using the below mentioned screen. It
is also possible to query the existing transaction with service type and modify the same.

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In the above window, User will be able to query the records updated in the Service tax repository.
Source LOV will be displaying the values Payables, Receivables, Distribution and Manual. These
are the sources from where service tax repository will be updated. User will be able to query the
records only with Null service type. Also User has the facility to query the records based on
Organization and location combination, transaction from and to dates.

On providing the filters, the following form will be opened

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In the above form, Users can update the Service type for the transactions. It canbe updated
based on the setup done or a specific service type can be selected. Also by checking the flag
“Default only where service type is null”, only those transactions where service type is null will be
updated. Otherwise all the transactions will get updated.

This form will also display the transaction level details for all the records that were updated in the
service tax repository. Hence this form is Service tax repository review form.

5.3 ACCOUNTING REVIEW

This form can also be used to view the accounting entries made against Service tax. For all those
transactions updated in the repository, on clicking view accounting button, accounting entry for
that particular transaction will be displayed.

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Also it may noted that the entries in repository review form and the accoutning entries can be
seen only for those transactions updated in repository post application of Service tax by Inventory
organizations and Service type patch.

6. SERVICE TAX ACCOUNTING

This section provides an overview on the tax accoutning process. Following figure depicts the
Accounting required for Taxes. Normally tax accounting happens along with base transaction
accounting. This varies when the Tax is deferred and can be recovered or the liability arises only
on happening of a particular accounting event in the future. For example, Service Tax recovery is
on cash basis. So is the accounting. In such cases, the actual Recovery happens on payments to
vendors and liability accounting happens on receipts from the customers.

Once the transaction has passed through the recovery and liability event, the next phase is to
distribute the credit available under this regime to taxes under other regimes. On the same lines
transfers from other regime would reduce the tax liability. The total of recovered amount (net of
transferred amounts) is what remains to set-off against the Tax Liability under the regime. The
Net Liability is settled by making a payment to the Tax Authority.

Following picture depicts the category of accounting events and their flow

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TAX ACCOUNTING PROCESS
Purchase Sale

Base Transaction Accounting Interim Recovery Interim Liability


Accounting Accounting

Recovery/Liability Event Recovery Liability


Accounting Accounting

Distribution Tax Distribution Tax


Distribution of Tax Recovered Accounting - Accounting - Entry
under different Regimes Entry to reduce to reduce Tax
Tax Credit Liability

Accounting to
Settlement - Set-off of Tax arrive of Net Tax
recovered against Tax Liability liability for the
Period

Payment of Net
Payment Tax to the
Authorities

6.1 ACCOUNTING ENTRIES

Accounting for Service taxes would be done in two phases. The first would be on the Purchasing
and sale event. On initial purchase and sale event, the Service Tax would be debited/credited to
an interim account. This debit/credit to Interim account would be reversed on to Recovery/Liability
accounts on recovery/liability event.

Following matrix gives the scheme of accounting entries that would be created to account Service
Tax at each event. The ‘Condition’ field provides information on transaction process or setup
variation that causes difference in accounting entries.

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Document Accounting Event Condition Service Tax Accounting

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Purchase Order Purchase Order
Debit: Service Tax Interim Recovery Account
Credit: AP Accrual Account
Accrue on Receipt
Receiving Receive is Set to 'Yes'

Deliver
Return to Receiving
Debit: AP Accrual Account
Credit: Service Tax Interim Recovery Account
Receiving Return to Vendor
Debit: Service Tax Interim Recovery Account
Credit: AP Accrual Account
Correction Correct- Receive
Debit: AP Accrual Account
Correct- Return to Credit: Service Tax Interim Recovery Account
Vendor
Receipt Matched
Invoices with
'Accrue on Debit: AP Accrual Account
Invoice Invoice Accounting Receipt' Credit: Supplier Liability Account
Receipt Matched
Invoices with
'Accrue on Debit: Supplier Liability Account
Cancellation Receipt' Credit: AP Accrual Account
PO Matched
Invoices with
Accrue on Receipt Debit: Service Tax Interim Recovery Account
Invoice Invoice Accounting as ‘No’ Credit: Supplier Liability Account
PO Matched
Invoices/Period Debit: Supplier Liability Account
Adjustment End Accrual Credit: Service Tax Interim Recovery Account
PO Matched
Invoices/Period Debit: Supplier Liability Account
Cancellation End Accrual Credit: Service Tax Interim Recovery Account
Debit: Service Tax Recovered Account
Credit: Service Tax Interim Recovery Account

Prepayment Amount would be in proportion of the Amount


Application applied has to Invoice Amount
Debit: Service Tax Interim Recovery Account
Credit: Service Tax Recovered Account

Amount would be in proportion of the Amount


Prepayment Unapply Unapplied has to Invoice Amount
Debit: Service Tax Recovered Account
Credit: Service Tax Interim Recovery Account

Amount would be in proportion of the Amount


Payments Payment paid has to Invoice Amount
Payment Maturity Debit: Service Tax Recovered Account
Credit: Service Tax Interim Recovery Account

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Amount would be in proportion of the Amount
paid has to Invoice Amount
Debit: Service Tax Recovered Account
Credit: Service Tax Interim Recovery Account

This entry would be created with negative


Payment Cancellation amounts
Accrue on Receipt Debit: Supplier Liability Account
Debit Memo Debit Memo - RTS is Set to 'Yes' Credit: AP Accrual Account
Debit: Service Tax Recovered Account
Credit: Service Tax Interim Recovery Account

This entry would be created with negative


Refund amounts
Sales Order Sales Order
Shipment Pick Release
Shipment

Debit: Receivable Account


Invoicing AR Invoice Accounting Credit: Service Tax Interim Liability Account
AR Invoice Debit: Service Tax Interim Liability Account
Cancellation Credit: Receivable Account
Debit: Service Tax Interim Liability Account
Receipt Application Credit: Service Tax Liability Account
Debit: Service Tax Liability Accoun
Reversal Credit: Service Tax Interim Liability Account
Debit: Service Tax Interim Liability Account
Credit Memo AR CM Accounting Credit: Receivable Account
Debit: Receivable Account
AR CM Cancellation Credit: Service Tax Interim Liability Account
Refund
CENVAT to Debit: Service Tax Recovered Account
Settlement Distribution Service Tax Credit: PLA Account
Debit: PLA Account
Credit: Service Tax Recovered Account

Service Tax to PLA Account defined for the organization is


Distribution CENVAT used here
Payment to Tax Debit: Tax Liability Account
Authority Credit: Service Tax Liability Account

Accounting Event. This event triggers Tax Accounting. In case of Recoverable Taxes the Tax
A Amount is passed to Interim Account
R Recovery Event. This event triggers Tax Recovery Accounting and Register Updates

6.2 SERVICE TAX ACCOUTING PROCESS

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All Accounting events would be accounted when the Base transaction line is being accounted.
The ‘India Service Tax Processing’ Concurrent program would process the recovery Accounting
events. At each run, the program would create accounting and Service Tax repository entries for
all eligible transactions.

7. SERVICE TAX DISTRIBUTION

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This facility has been provided to transfer the excess service tax credit available and set off
against the service/excise tax liability, which is permitted under the Cenvat credit rules and
Service tax credit rules. User will be able to transfer the service tax credit with in the following
permissible combinations:

Sr. No. From Org To Org Transfer Type Comments


1 Inventory Organization Inventory Service - Service Handled
Organization
2 Operating Unit Inventory Service – Handled
Organization Service
3 Inventory Organization Inventory Service – Excise Handled
Organization
4 Inventory Organization Inventory Excise – Service Handled
Organization

It may be noted that combination # 2 specified in the above table is possible only under the
scenario where service tax by operating units patch was applied and later on service tax by
Inventory organizations is applied. It means that if you are already using the service tax
functionality and upgraded to latest patch sets, then for transferring the service tax balances lying
in operating units to Inventory organizations, this combination can be used. Post application of
the latest patches, it is not possible to transfer service tax credit from one operating unit to other.
It may be noted that prior to carrying out the First settlement balances available in operating units
have to be nullified.

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User can select the service type against which distribution needs to be carried out. Service Tax
type in the destination organization will be the same as the Service Type given in the source
organization at header.

To confirm the transfer User will have to press the ‘Distribute’ button.

Please note that the total of amount(s) transferred to the destination organization have to match
the amount transferred from the source organization.

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8. SERVICE TAX MANUAL ENTRY

This functionality is provided as a means for handling exceptional scenarios in your business
process that necessitate capturing of such transactions outside the normal transaction cycles.
Manual Entry transactions for Service tax may be used for passing Adjustment entries for service
tax Recovery / Liability transactions done in the Procure to pay and Order to cash Cycles. Service
tax Recovery / Liability, Service tax Payment transactions can also be created directly using this
window.

It may be noted that for the transaction type payment, no accounting entries would be generated
by the system. This is because, the accounting would happen at the time of making the Invoice
Payment in payables and the Service Tax - Manual Transaction "Payment" entry is just to enter
the payment in to the service tax repository without any accounting entry. Any "Payment" type
manual entry, without a corresponding AP Invoice Payment with appropriate accounting
distribution, will cause incorrect settlement.

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9. SERVICE TAX SETTLEMENT

Users need to perform the periodic settlement of Service tax to the Authorities. For this purpose,
settlement form has been provided. In this form, Users will be able to the process the records for
settlement which will generate an AP Invoice against the Service tax authorities. Settlement
process should be performed before payment is made to the Service Tax authority and
submission of returns. This will ensure that the records are processed for settlement and
necessary accounting is passed.

The system will automatically create an AP invoice in favor of the Service Tax authority. Users
will have to select the Service Tax authority and site for which AP invoice needs to be created.

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Payment made to the Service Tax authorities is made by TR-6 challan, you can capture the TR-6
challan number and challan date in the fields provided.

On giving the requisite details, press the ‘Process’ button. On doing this, the system will internally
generate distribution entries between different organizations and mark the selected records as
‘settled’. This will also create an AP invoice in favor of the Service Tax authority.
Service tax settlement illustration:

On performing the settlement process, Users will have to navigate to the Find Settlements
screen.

Users can find all the settlements performed from this screen. LOV for ‘Settlement Status’
contains 2 values viz.

Settlement Status Description


Settled This means that AP invoice has been paid and
payment has been processed in the
‘Settlement Details’ screen.
Payment Due This means the AP invoice has been
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paid/unpaid but the payment has not been
processed in the ‘Settlement Details’ screen.

On processing the records in the ‘Service Tax Settlement’ screen Users can find out the AP
invoice number that has been generated using this screen. On finding out the AP invoice number,
they should navigate to AP and pay the invoice.

On payment of AP invoice you will again find the AP invoice using the above find window to show
the following screen

Invoice status will be shown in the above screen. The different statuses are as follows:

Invoice Status Description


Imported AP invoice has been created and not yet paid
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Partially Paid AP invoice partially paid
Paid AP invoice fully paid
In Interface Invoice is created but is stuck in the interface
Payment processed Indicates that settlement process is completed

Once the AP Invoice is paid, Users need to navigate to the above form and check in the process
payment flag and click the process payment to ensure that the settlement process is complete.

10. REPORTING

The following reports are available currently with respect to Service tax functionality in Financials
for India:

a) India Service tax Report


b) India – Service tax credit register report.
c) India Service tax Pending Liability report
d) India Service tax pending recovery report
e) India Service tax ST3 report.

10.1 India Service tax report

This report display transactions leading to Service Tax liability. Only those Invoices, which have
Service Tax Type of Taxes, and for which Receipt has been assigned will be considered for this
report

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10.2 India Service tax Credit register report

This report lists the transactions from which service tax credit was availed.

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10.3 India Service tax Pending Liability Report

This report shows the AR transactions where in Service tax type of taxes have been used and
receipt is not yet applied for those transactions.

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10.4 India Service tax pending recovery report

This report displays the AP Invoices where in Service tax type of taxes are used and which are
not yet paid.

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10.5 India Service tax ST3 report

This Report gives you the Service Tax repository data in ST3 Format.

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It may be noted that this report output will capture data only to the extent relevant input data is
entered in the system. For example as per the format provided by Authorities, in the report output,
User has to enter details like exemptions availed, abatement etc., which are not captured in the
system and hence the same columns in the report will not display any values.

11. DIAGNOSTIC SCRIPTS

Diagnostic Scripts provides an overview on troubleshooting the service tax related issues using
the diagnostic scripts provided in metalink note # 402711.1 (Financials for India Diagnostic
scripts).

11.1 Interpreting PO-AP Diagnostic Scripts

Script Name: loc_rec_po11i_4.sql

The above script needs to be run for a receipt number and organization_id. This script output
shows the receipt transactions details and the relevant setups done. In the above script, the
following table details are relevant with respect to Service tax:

1. Receipt details:

From the tables JA_IN_RECEIPT_LINES and JA_IN_RECEIPT_TAX_LINES, receipt line details


and the taxes attached to the receipt line can be verified.

2. Tax code Setup:

From the table 'JA_IN_TAX_CODES', you would know the tax type of all the taxes attached to the
shipment lines of the receipts.

a. Tax_account_id: When the charge account is specified with Mod_cr_percentage


less than ‘100’, non recoverable amount will be apportioned to this account.

b. Modifiable_flag: If 'Y' allows to modify the tax at transaction level.

c. Mod_cr_percentage: For excise taxes if the %=100 then the Receipt will appear
in Claim CENVAT screen and CENVAT, Excise registers will be generated.

3. Financials for India Organization setup details:

The 'Additional Organization Information' setup details can be had for that particular organization
from the table 'ja_in_hr_organization_units'.

Script Name: loc_aplist11i.sql

The above script needs to be run for an Invoice_id (AP Invoice) and the vendor_id. This script
lists the table level details for an AP Invoice and the relevant setups done. In the above script, the
following table details are relevant with respect to Service tax:

1. Regime registration setup details:


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From the tables JAI_RGM_REGNS and JAI_RGM_PARTIES, regime registration setup details
done at inventory organization level can be verified.

2. Service tax Repository details:

JAI_RGM_TRX_REFS table will get populated when the invoice is accounted and the India –
Service tax processor concurrent program is run successfully. This table shows the service tax
amounts populated in the AP Invoice.

JAI_RGM_TRX_RECORDS table will get populated when the invoice is paid and the India –
Service tax processor concurrent program is run successfully. This is the table that holds the
service tax repository data.

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