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

Service tax functionality in Oracle financials for India White Paper Ver 1.0

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Service tax functionality in Oracle financials for India White Paper Ver 1.0

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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.

Service tax functionality in Oracle financials for India White Paper Ver 1.0

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Service tax functionality in Oracle financials for India White Paper Ver 1. however. Excise taxes are levied on the manufacturers. For example. Initially service tax was imposed on 3 services and the scope is being widened every year. Finance Act. 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. Hence features provided in the product are based on the provisions of the Finance act. hereafter referred as Service tax in India. Service tax solution was developed by Oracle Financials for India to meet the statutory requirements in India.INTRODUCTION Taxes in India are classified as Direct and Indirect taxes. 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. 1994 introduced the levy of tax on Services rendered. as amended from time to time and the service tax credit rules framed by the statutory authority. Indirect taxes are those taxes whose burden can be passed on to the Buyers of goods and services.0 4 .

OVERVIEW Initially Service tax functionality has been provided in Oracle Financials for India through patch # 4239736. 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. Service tax functionality in Oracle financials for India White Paper Ver 1.0 5 . 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. g) Provision to maintain and view the Service tax repository. then the latest Service tax functionality would be available. This was referred as Service tax by operating units patch as the fucntionality was delivered at operating unit level. The above-mentioned functionalities are explained in detail in the relevant sections below. It may be noted that the first two patches mentioned here are superceded by patch 6167056). c) Definition of rules for accouting for Service tax. b) Definition of Service tax type codes. f) Facilitating the settlement of Service tax liability. d) Provision to default the Service type applicable for Suppliers/Customers. 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. h) Reporting requirements with respect to Service tax. as applicable. e) Provision to distribute the service tax credit available across inventory organizations. This functionality has been delivered through patch # 6166691 and the same fixes have been included in Budget 2007 patches (6003048 or 6079248 or 6167056. even though patch # 6166691 is not applied. Hence if patch # 6167056 is applied.

1. Following figure depicts the regime structure: DEFINING SERVICE TAX REGIME Define Regimes Registrations Assign Orgnaizations Assign Tax Types Assign Organization Accounts Assign Tax Accounts On a regime.0 6 . 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.1 Service Tax Registration Organizations have to register with the various Service Tax Authorities. 1.1.SETUP 4. settling tax liability and Tax Reporting. Information defined here would be generic and would be applicable to all the organizations defined under this regime unless changed at the Organization level. Those registration details can be captured in the registrations tab as below: Service tax functionality in Oracle financials for India White Paper Ver 1. The registration would be the basis for recovering credit on input Tax.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.

Based on the register name specified here.In the registrations tab. If the values assigned for a particular tax were different.. This is a logical grouping of all transactions to which these taxes are applicable. Also one important parameter which will drive the accouting on the event of service tax credit distribution is “Service tax distribution in PLA/RG”.1.0 7 . Accounting and register updates will happen. these would prevail over those defined for the regime. 1.2 Assigning Tax Types Service Tax Types have to be assigned to the Service Tax regime. Jurisdiction under which the organization is falling etc. Service tax functionality in Oracle financials for India White Paper Ver 1.1. parameters relating to the Organization as a whole are defined such as Registration number of the Organization.

1. Taxes defined under this regime would default only for these organizations. tax types applicable for this Service tax and account codes applicable can be assigned. Account codes that will be used for accounting of Service taxes need to be specified in the tax account details.1.Under this tab. Currently Education cess and Secondary higher education cess are also leviable on the Service tax amount. interim accounts have to be defined that will store the Service Tax which has not been paid / received 1.3 Assigning Organizations Regime has to be assigned to all organizations to which it is applicable.0 8 . Service tax functionality in Oracle financials for India White Paper Ver 1. As Service Tax is accounted on cash basis apart from final Recovery and Liability Accounts.

Also if an inventory organization is having multiple locations. User will be able to assign the Inventory Organizations to which the service tax regime is applicable.Under the Organization details. Otherwise processing of Service taxes will happen only for the assigned locations.0 9 . all those locations have to be assigned under this regime. Service tax functionality in Oracle financials for India White Paper Ver 1.

Customer additional information setup need to be completed for those Customers from whom service tax amount will be recovered. tax types assignment and the account values assignment can be assigned to the Inventory organizations.Registration details. if they are different from those assigned under the header level. In Service tax functionality in Oracle financials for India White Paper Ver 1.2 Customer Additional Information To be able to make transactions in Order to Cash cycle. It gets unchecked when registration value is modified. Default checkbox will be checked whenever default registration values at the regime level are retained. 4. Otherwise the values will get defaulted from the header.0 10 .

0 11 . Service tax functionality in Oracle financials for India White Paper Ver 1. Otherwise Users need to manually update the service type in the transactions. 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.this form.

0 12 . Service tax registration number and the Service tax type applicable for that particular supplier needs to provided. then it will be defaulted in the transactions.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. Service tax functionality in Oracle financials for India White Paper Ver 1. If Service type is defined here. In this form.4. Otherwise Users need to manually update the service type in the transactions.

Service tax type codes can be defined and the same can be used in the transactions. Service tax functionality in Oracle financials for India White Paper Ver 1.4 Tax code definition In Tax code definition form.4. It has to be noted that Service tax codes have to be defined as recoverable taxes by specifying the credit percentage as 100.0 13 . 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.

SIGNIFICANCE OF SERVICE TYPE 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. Hence to capture the type of Service. Type of service is relevant for determining the amount chargeable for tax and also to meet the reporting requirements under the act. 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 Service tax functionality in Oracle financials for India White Paper Ver 1.0 14 . 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.

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 Cargo Handling Chartered Accountant (1-1500) Cleaning Services Club or Association services Commercial or Industrial construction services Commercial Training Coach Company Secretary Construction of Complex Consulting Engineer Convention Services Cost Accountant Courier Credit / Debit card or other payment card services Credit Rating Agency Custom House Agent Dredging Service of Rivers etc Dry Cleaning Services Eraction.0 15 . Maintenance & Repair Mandap Keepers Manpower Recruitment & Supply Market Research Online Information & data base access or retrival Opinion Poll Services Other port services Outdoor Caterer's Services Packaging Services Pagers Pandal or Shamiana Services Photography Port Services Programme producer Public relations management services Rail Travel Agent Service Service tax functionality in Oracle financials for India White Paper Ver 1. Commissioning & Installation Event Management Facsimile Services Fashion Designing Foreign Exchange Broker Forward Contract Services Franchise Service General Insurance Service Health Club Insurance Auxiliary Service Intellectual Property Services Interior Decorator Internet Cafe Internet Telephony Leased Circuits Life Insurance Life Insurance Actuary & auxiiliary services Mailing List Compilation Management Consultant's Services Management.

0 16 . 5. description and effective from date.1. The need for addition of service types arises whenever Government of India added more services vide inclusion in Finance Act. Meaning.68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 Real Estate Agent Recovery Agent's Services Registrar to an issue's services Rent-A-Cab Sale of Space or time for advertisement services Scientific & Technical Consultancy Service Security Agency Share Transfer Agent's Service Ship Management Services Site Formation and Clearance Sound Recording Services Sponsorship Service Steamer Agents Stock Broker Storage & Warehouse Survey & Exploration of Minerals Survey and Map making Technical inspection and certification Technical Testing and Analysis Telegraph Services Telephone Telex Services Tour Operator Transport of goods by Aircraft Transport of Goods By Pipeline Transport of goods by Road Transport of goods in container by rail service Transport of passengers by air embarking in India during international journey Transport of persons embarking from india by cruise ship Travel Agents Under Writer R & D Video Tape Services The above-mentioned service types have been provided as seeded values in the lookup codes. Inclusion of Service Types It may be noted that the user in the application can manually add service types. Service tax functionality in Oracle financials for India White Paper Ver 1. User will be able to select the new service types as well in the transactions.1. 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. By doing this.

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. In Purchase Order localized form. as shown above. then Users will not be able to perform settlement. Service type of the original order will get copied to the RMA order and is shown in view mode only. Also the User can change this value. In this case. If this setup is not carried out and service type is not mentioned even in the transaction forms 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. This defaulted value can be changed in those transaction forms.0 17 . Service tax functionality in Oracle financials for India White Paper Ver 1. Service type got defaulted from the Supplier additional information setup. Similarly in Sales Order localized form and Receivables transaction localized form also.

5.0 18 . Service tax functionality in Oracle financials for India White Paper Ver 1. It is also possible to query the existing transaction with service type and modify the same.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.

transaction from and to dates. the following form will be opened Service tax functionality in Oracle financials for India White Paper Ver 1.In the above window.0 19 . On providing the filters. Source LOV will be displaying the values Payables. User will be able to query the records only with Null service type. Receivables. Also User has the facility to query the records based on Organization and location combination. User will be able to query the records updated in the Service tax repository. Distribution and Manual. These are the sources from where service tax repository will be updated.

Service tax functionality in Oracle financials for India White Paper Ver 1. Hence this form is Service tax repository review form.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. 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. This form will also display the transaction level details for all the records that were updated in the service tax repository. Otherwise all the transactions will get updated. Also by checking the flag “Default only where service type is null”.In the above form. accounting entry for that particular transaction will be displayed.0 20 . only those transactions where service type is null will be updated. 5. on clicking view accounting button.

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. In such cases.0 21 . SERVICE TAX ACCOUNTING This section provides an overview on the tax accoutning process. On the same lines transfers from other regime would reduce the tax liability. Following figure depicts the Accounting required for Taxes. Normally tax accounting happens along with base transaction accounting. Service Tax recovery is on cash basis. For example. So is the accounting. Following picture depicts the category of accounting events and their flow Service tax functionality in Oracle financials for India White Paper Ver 1.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. The total of recovered amount (net of transferred amounts) is what remains to set-off against the Tax Liability under the regime. the actual Recovery happens on payments to vendors and liability accounting happens on receipts from the customers. The Net Liability is settled by making a payment to the Tax Authority. 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.

Entry to reduce Tax Liability Settlement . Following matrix gives the scheme of accounting entries that would be created to account Service Tax at each event. On initial purchase and sale event. Service tax functionality in Oracle financials for India White Paper Ver 1.Set-off of Tax recovered against Tax Liability Accounting to arrive of Net Tax liability for the Period Payment Payment of Net Tax to the Authorities ACCOUNTING ENTRIES Accounting for Service taxes would be done in two phases. The first would be on the Purchasing and sale event.0 22 .TAX ACCOUNTING PROCESS Purchase Sale Base Transaction Accounting Interim Recovery Accounting Interim Liability Accounting Recovery/Liability Event Recovery Accounting Liability Accounting Distribution of Tax Recovered under different Regimes Distribution Tax Accounting Entry to reduce Tax Credit Distribution Tax Accounting . the Service Tax would be debited/credited to an interim account. The ‘Condition’ field provides information on transaction process or setup variation that causes difference in accounting entries. This debit/credit to Interim account would be reversed on to Recovery/Liability accounts on recovery/liability event.

Document Purchase Order Accounting Event Purchase Order Condition Service Tax Accounting Debit: Service Tax Interim Recovery Account Credit: AP Accrual Account Receiving Receive Deliver Return to Receiving Accrue on Receipt is Set to 'Yes' 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 Correct.0 23 .Return to Vendor Receipt Matched Invoices with 'Accrue on Receipt' Receipt Matched Invoices with 'Accrue on Receipt' PO Matched Invoices with Accrue on Receipt as ‘No’ PO Matched Invoices/Period End Accrual PO Matched Invoices/Period End Accrual Debit: AP Accrual Account Credit: Service Tax Interim Recovery Account Invoice Invoice Accounting Debit: AP Accrual Account Credit: Supplier Liability Account Cancellation Debit: Supplier Liability Account Credit: AP Accrual Account Invoice Invoice Accounting Debit: Service Tax Interim Recovery Account Credit: Supplier Liability Account Debit: Supplier Liability Account Credit: Service Tax Interim Recovery Account Debit: Supplier Liability Account Credit: Service Tax Interim Recovery Account Debit: Service Tax Recovered Account Credit: Service Tax Interim Recovery Account Amount would be in proportion of the Amount applied has to Invoice Amount Debit: Service Tax Interim Recovery Account Credit: Service Tax Recovered Account Amount would be in proportion of the Amount Unapplied has to Invoice Amount Debit: Service Tax Recovered Account Credit: Service Tax Interim Recovery Account Amount would be in proportion of the Amount paid has to Invoice Amount Debit: Service Tax Recovered Account Credit: Service Tax Interim Recovery Account Adjustment Cancellation Prepayment Application Prepayment Unapply Payments Payment Payment Maturity Service tax functionality in Oracle financials for India White Paper Ver 1.

This event triggers Tax Recovery Accounting and Register Updates Service tax functionality in Oracle financials for India White Paper Ver 1.0 24 . In case of Recoverable Taxes the Tax Amount is passed to Interim Account Recovery Event.RTS Sales Order Shipment Refund Sales Order Pick Release Shipment Invoicing AR Invoice Accounting AR Invoice Cancellation Application Reversal Receipt Credit Memo AR CM Accounting AR CM Cancellation Refund Debit: Receivable Account Credit: Service Tax Interim Liability Account Debit: Service Tax Interim Liability Account Credit: Receivable Account Debit: Service Tax Interim Liability Account Credit: Service Tax Liability Account Debit: Service Tax Liability Accoun Credit: Service Tax Interim Liability Account Debit: Service Tax Interim Liability Account Credit: Receivable Account Debit: Receivable Account Credit: Service Tax Interim Liability Account CENVAT to Service Tax Debit: Service Tax Recovered Account Credit: PLA Account Debit: PLA Account Credit: Service Tax Recovered Account PLA Account defined for the organization is used here Debit: Tax Liability Account Credit: Service Tax Liability Account Settlement Distribution Distribution Payment to Tax Authority Service Tax to CENVAT A R Accounting Event.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 amounts Accrue on Receipt Debit: Supplier Liability Account 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 amounts Payment Cancellation Debit Memo Debit Memo . This event triggers Tax Accounting.

The ‘India Service Tax Processing’ Concurrent program would process the recovery Accounting events. the program would create accounting and Service Tax repository entries for all eligible transactions.0 25 . At each run. Service tax functionality in Oracle financials for India White Paper Ver 1.SERVICE TAX ACCOUTING PROCESS All Accounting events would be accounted when the Base transaction line is being accounted.

it is not possible to transfer service tax credit from one operating unit to other. It means that if you are already using the service tax functionality and upgraded to latest patch sets. User will be able to transfer the service tax credit with in the following permissible combinations: Sr. No. Post application of the latest patches. which is permitted under the Cenvat credit rules and Service tax credit rules.Service Service – Service Service – Excise Excise – Service Comments Handled Handled Handled Handled 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. then for transferring the service tax balances lying in operating units to Inventory organizations. 1 2 3 4 From Org Inventory Organization Operating Unit Inventory Organization Inventory Organization To Org Inventory Organization Inventory Organization Inventory Organization Inventory Organization Transfer Type Service . this combination can be used. It may be noted that prior to carrying out the First settlement balances available in operating units have to be nullified. Service tax functionality in Oracle financials for India White Paper Ver 1.SERVICE TAX DISTRIBUTION This facility has been provided to transfer the excess service tax credit available and set off against the service/excise tax liability.0 26 .

Please note that the total of amount(s) transferred to the destination organization have to match the amount transferred from the source organization.User can select the service type against which distribution needs to be carried out.0 27 . Service Tax type in the destination organization will be the same as the Service Type given in the source organization at header. Service tax functionality in Oracle financials for India White Paper Ver 1. To confirm the transfer User will have to press the ‘Distribute’ button.

0 28 . Service tax functionality in Oracle financials for India White Paper Ver 1. will cause incorrect settlement. no accounting entries would be generated by the system. Any "Payment" type manual entry. Service tax Payment transactions can also be created directly using this window. 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. This is because.Manual Transaction "Payment" entry is just to enter the payment in to the service tax repository without any accounting entry. the accounting would happen at the time of making the Invoice Payment in payables and the Service Tax . without a corresponding AP Invoice Payment with appropriate accounting distribution. It may be noted that for the transaction type payment.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.

The system will automatically create an AP invoice in favor of the Service Tax authority. For this purpose. This will ensure that the records are processed for settlement and necessary accounting is passed. In this form. Users will have to select the Service Tax authority and site for which AP invoice needs to be created. Users will be able to the process the records for settlement which will generate an AP Invoice against the Service tax authorities. settlement form has been provided.0 29 .SERVICE TAX SETTLEMENT Users need to perform the periodic settlement of Service tax to the Authorities. Service tax functionality in Oracle financials for India White Paper Ver 1. Settlement process should be performed before payment is made to the Service Tax authority and submission of returns.

Users can find all the settlements performed from this screen. Users will have to navigate to the Find Settlements screen. On giving the requisite details. press the ‘Process’ button. the system will internally generate distribution entries between different organizations and mark the selected records as ‘settled’. Settlement Status Settled Description This means that AP invoice has been paid and payment has been processed in the ‘Settlement Details’ screen.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 doing this. This means the AP invoice has been Payment Due Service tax functionality in Oracle financials for India White Paper Ver 1.0 30 . Service tax settlement illustration: On performing the settlement process. This will also create an AP invoice in favor of the Service Tax authority. LOV for ‘Settlement Status’ contains 2 values viz.

On finding out the AP invoice number. they should navigate to AP and pay the invoice.0 31 . 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. The different statuses are as follows: Invoice Status Imported Description AP invoice has been created and not yet paid Service tax functionality in Oracle financials for India White Paper Ver 1.paid/unpaid but the payment has not been processed in the ‘Settlement Details’ screen. 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.

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. Only those Invoices. c) India Service tax Pending Liability report d) India Service tax pending recovery report e) India Service tax ST3 report. 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.Partially Paid Paid In Interface Payment processed AP invoice partially paid AP invoice fully paid Invoice is created but is stuck in the interface Indicates that settlement process is completed Once the AP Invoice is paid.0 32 . which have Service Tax Type of Taxes. 1. and for which Receipt has been assigned will be considered for this report Service tax functionality in Oracle financials for India White Paper Ver 1.2 India Service tax report This report display transactions leading to Service Tax liability.

0 33 .3 India Service tax Credit register report This report lists the transactions from which service tax credit was availed. Service tax functionality in Oracle financials for India White Paper Ver 1.1.

1.4 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. Service tax functionality in Oracle financials for India White Paper Ver 1.0 34 .

0 35 . Service tax functionality in Oracle financials for India White Paper Ver 1.1.5 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.

1. Service tax functionality in Oracle financials for India White Paper Ver 1.6 India Service tax ST3 report This Report gives you the Service Tax repository data in ST3 Format.0 36 .

In the above script. For example as per the format provided by Authorities. 11. In the above script.. This script lists the table level details for an AP Invoice and the relevant setups done. b. Modifiable_flag: If 'Y' allows to modify the tax at transaction level. Tax_account_id: When the charge account is specified with Mod_cr_percentage less than ‘100’. which are not captured in the system and hence the same columns in the report will not display any values. This script output shows the receipt transactions details and the relevant setups done.sql The above script needs to be run for a receipt number and organization_id. c. the following table details are relevant with respect to Service tax: 1. 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'. receipt line details and the taxes attached to the receipt line can be verified.1 Interpreting PO-AP Diagnostic Scripts Script Name: loc_rec_po11i_4. Receipt details: From the tables JA_IN_RECEIPT_LINES and JA_IN_RECEIPT_TAX_LINES. Tax code Setup: From the table 'JA_IN_TAX_CODES'.sql The above script needs to be run for an Invoice_id (AP Invoice) and the vendor_id. a. Regime registration setup details: Service tax functionality in Oracle financials for India White Paper Ver 1.0 37 . 2. 11. 3. User has to enter details like exemptions availed.1 (Financials for India Diagnostic scripts). Mod_cr_percentage: For excise taxes if the %=100 then the Receipt will appear in Claim CENVAT screen and CENVAT.It may be noted that this report output will capture data only to the extent relevant input data is entered in the system. abatement etc. DIAGNOSTIC SCRIPTS Diagnostic Scripts provides an overview on troubleshooting the service tax related issues using the diagnostic scripts provided in metalink note # 402711. non recoverable amount will be apportioned to this account. Excise registers will be generated. the following table details are relevant with respect to Service tax: 1. in the report output. you would know the tax type of all the taxes attached to the shipment lines of the receipts. Script Name: loc_aplist11i.

JAI_RGM_TRX_RECORDS table will get populated when the invoice is paid and the India – Service tax processor concurrent program is run successfully. regime registration setup details done at inventory organization level can be verified. This table shows the service tax amounts populated in the AP Invoice.0 38 . Service tax functionality in Oracle financials for India White Paper Ver 1.From the tables JAI_RGM_REGNS and JAI_RGM_PARTIES. This is the table that holds the service tax repository data. 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. 2.

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