Service Tax Functionality in Financials for India

WHITE PAPER

Service Tax Functionality in Financials for India

Prepared by

Author: Krishna Surapaneni –Financials for India SupportCreation Date: 26-May-2008Last Updated: Control Number: 1Version: 1Copyright (C) 2008 Oracle CorporationAll Rights ReservedProduct Design and Architecture

Service tax functionality in Oracle financials for India White Paper Ver 1.01

1. SCOPE...........................................................................................................................3

2. INTRODUCTION..........................................................................................................4

3. OVERVIEW...................................................................................................................5

4. SETUP............................................................................................................................6

4.1 REGIME REGISTRATION............................................................................................64.1.1 Service Tax Registration.....................................................................................64.1.2 Assigning Tax Types...........................................................................................7

4.1.3 Assigning Organizations............................................................................84.2 CUSTOMER ADDITIONAL INFORMATION.................................................................114.3 SUPPLIER ADDITIONAL INFORMATION....................................................................12

5. SIGNIFICANCE OF SERVICE TYPE.....................................................................15

5.1 WHAT IS ‘SERVICE TYPE’.......................................................................................155.1.1. INCLUSION OF SERVICE TYPES.........................................................................175.2 SERVICE TYPE REVIEW DURING PERIOD END........................................185.3 ACCOUNTING REVIEW.....................................................................................20

6. SERVICE TAX ACCOUNTING................................................................................21

6.1 ACCOUNTING ENTRIES...................................................................................226.2 SERVICE TAX ACCOUTING PROCESS........................................................25

7. SERVICE TAX DISTRIBUTION...............................................................................26

8. SERVICE TAX MANUAL ENTRY...........................................................................28

9. SERVICE TAX SETTLEMENT................................................................................29

10. REPORTING.............................................................................................................32

10.1 INDIA SERVICE TAX REPORT..................................................................................3210.2 INDIA SERVICE TAX CREDIT REGISTER REPORT.....................................................3310.3 INDIA SERVICE TAX PENDING LIABILITY REPORT.................................................3410.4 INDIA SERVICE TAX PENDING RECOVERY REPORT.................................................3510.5 India Service tax ST3 report..................................................................................36


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.


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.


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.


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:

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 RegistrationOrganizations 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:


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.


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.


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.


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.

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.


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.

4.4 Tax code definitionService tax functionality in Oracle financials for India White Paper Ver 1.0

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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 taxb) Education cess on Service taxc) Secondary Higher education cess on Service tax.


5. 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. 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 Service2 Advertising Agency Service3 Air Travel Agent4 Airport Services5 Architects6 Authorised Service Station7 Automated Teller Machine Operations, Maintenance or management services8 Bank & Financial Services9 Beauty Parlour

10 Broadcasting11 Business Auxiliary Services12 Business Exhibition Services13 Business Support Services14 C & F Agents15 Cable Operator16 Cargo Handling17 Chartered Accountant (1-1500)18 Cleaning Services19 Club or Association services20 Commercial or Industrial construction services21 Commercial Training Coach22 Company Secretary23 Construction of Complex24 Consulting Engineer25 Convention Services26 Cost Accountant27 Courier28 Credit / Debit card or other payment card services29 Credit Rating Agency30 Custom House Agent31 Dredging Service of Rivers etc32 Dry Cleaning Services33 Eraction, Commissioning & Installation34 Event Management35 Facsimile Services36 Fashion Designing37 Foreign Exchange Broker38 Forward Contract Services39 Franchise Service40 General Insurance Service41 Health Club42 Insurance Auxiliary Service43 Intellectual Property Services44 Interior Decorator45 Internet Cafe46 Internet Telephony47 Leased Circuits48 Life Insurance


49 Life Insurance Actuary & auxiiliary services50 Mailing List Compilation51 Management Consultant's Services52 Management, Maintenance & Repair53 Mandap Keepers54 Manpower Recruitment & Supply55 Market Research56 Online Information & data base access or retrival57 Opinion Poll Services58 Other port services59 Outdoor Caterer's Services60 Packaging Services61 Pagers62 Pandal or Shamiana Services63 Photography64 Port Services65 Programme producer66 Public relations management services67 Rail Travel Agent Service68 Real Estate Agent69 Recovery Agent's Services70 Registrar to an issue's services71 Rent-A-Cab72 Sale of Space or time for advertisement services73 Scientific & Technical Consultancy Service74 Security Agency75 Share Transfer Agent's Service76 Ship Management Services77 Site Formation and Clearance78 Sound Recording Services79 Sponsorship Service80 Steamer Agents81 Stock Broker82 Storage & Warehouse83 Survey & Exploration of Minerals84 Survey and Map making85 Technical inspection and certification86 Technical Testing and Analysis87 Telegraph Services88 Telephone89 Telex Services90 Tour Operator91 Transport of goods by Aircraft92 Transport of Goods By Pipeline93 Transport of goods by Road94 Transport of goods in container by rail service95 Transport of passengers by air embarking in India during international journey96 Transport of persons embarking from india by cruise ship97 Travel Agents98 Under Writer R & D99 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 Codesb) Query with Type as JAI_SERVICE_TYPEc) 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.


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.


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


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.


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


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.

Document Accounting Event Condition Service Tax AccountingService tax functionality in Oracle financials for India White Paper Ver 1.0

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Purchase Order Purchase Order

Receiving ReceiveAccrue on Receipt is Set to 'Yes'

Debit: Service Tax Interim Recovery AccountCredit: AP Accrual Account

Deliver Return to Receiving

Receiving Return to Vendor

Debit: AP Accrual AccountCredit: Service Tax Interim Recovery Account

Correction Correct- Receive

Debit: Service Tax Interim Recovery AccountCredit: AP Accrual Account

Correct- Return to Vendor

Debit: AP Accrual AccountCredit: Service Tax Interim Recovery Account

Invoice Invoice Accounting

Receipt Matched Invoices with 'Accrue on Receipt'

Debit: AP Accrual AccountCredit: Supplier Liability Account

Cancellation

Receipt Matched Invoices with 'Accrue on Receipt'

Debit: Supplier Liability AccountCredit: AP Accrual Account

Invoice Invoice Accounting

PO Matched Invoices with Accrue on Receipt as ‘No’

Debit: Service Tax Interim Recovery AccountCredit: Supplier Liability Account

Adjustment

PO Matched Invoices/Period End Accrual

Debit: Supplier Liability AccountCredit: Service Tax Interim Recovery Account

Cancellation

PO Matched Invoices/Period End Accrual

Debit: Supplier Liability AccountCredit: Service Tax Interim Recovery Account

Prepayment Application

Debit: Service Tax Recovered AccountCredit: Service Tax Interim Recovery Account

Amount would be in proportion of the Amount applied has to Invoice Amount

Prepayment Unapply

Debit: Service Tax Interim Recovery AccountCredit: Service Tax Recovered Account

Amount would be in proportion of the Amount Unapplied has to Invoice Amount

Payments Payment


Amount would be in proportion of the Amount paid has to Invoice Amount

Payment Maturity Debit: Service Tax Recovered AccountCredit: Service Tax Interim Recovery Account


Amount would be in proportion of the Amount paid has to Invoice Amount

Payment Cancellation


This entry would be created with negative amounts

Debit Memo Debit Memo - RTSAccrue on Receipt is Set to 'Yes'

Debit: Supplier Liability AccountCredit: AP Accrual Account

Refund


This entry would be created with negative amounts

Sales Order Sales Order Shipment Pick Release Shipment

Invoicing AR Invoice Accounting Debit: Receivable AccountCredit: Service Tax Interim Liability Account

AR Invoice Cancellation

Debit: Service Tax Interim Liability AccountCredit: Receivable Account

Receipt Application Debit: Service Tax Interim Liability Account Credit: Service Tax Liability Account

Reversal Debit: Service Tax Liability AccounCredit: Service Tax Interim Liability Account

Credit Memo AR CM Accounting Debit: Service Tax Interim Liability Account Credit: Receivable Account

AR CM Cancellation Debit: Receivable AccountCredit: Service Tax Interim Liability Account

Refund

Settlement DistributionCENVAT to Service Tax

Debit: Service Tax Recovered AccountCredit: PLA Account

DistributionService Tax to CENVAT

Debit: PLA AccountCredit: Service Tax Recovered Account

PLA Account defined for the organization is used here

Payment to Tax Authority

Debit: Tax Liability AccountCredit: Service Tax Liability Account

AAccounting Event. This event triggers Tax Accounting. In case of Recoverable Taxes the Tax Amount is passed to Interim Account

R Recovery Event. This event triggers Tax Recovery Accounting and Register Updates

6.2 SERVICE TAX ACCOUTING PROCESS


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


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 Comments1 Inventory Organization Inventory

OrganizationService - Service Handled

2 Operating Unit Inventory Organization

Service – Service

Handled

3 Inventory Organization Inventory Organization

Service – Excise Handled

4 Inventory Organization Inventory Organization

Excise – Service 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. 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.


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.


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.


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.


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 DescriptionSettled 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


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 DescriptionImported AP invoice has been created and not yet paid


Partially Paid AP invoice partially paidPaid AP invoice fully paidIn Interface Invoice is created but is stuck in the interfacePayment 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 Reportb) India – Service tax credit register report.c) India Service tax Pending Liability reportd) India Service tax pending recovery reporte) 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


10.2 India Service tax Credit register report

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


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.


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.


10.5 India Service tax ST3 report

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


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:


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.


Documents

Service Tax Functionality in Financials for India