| # Tax Structure in India The tax structure can be primarily categorized as follows: Direct Taxation Indirect Taxation Direct taxes in India Following are the Direct taxes applicable for Infor LN: Withholding Tax(Tax Deduction at Source) Tax Collection at Source Direct Taxation Tax is levied when the party with whom the transaction is entered is assumed to make profit as the result of the transaction. The different taxes applicable are as follows: Tax Deduction at Source (TDS) aka Withholding Income Tax (WHT) Tax Collection at Source (TCS) Tax Collection at Source This functionality allows you to collect the Tax Collection at Source (TCS) amount on scrap sales. There is a provision to collect the TCS tax on advance receipts and sales invoices. The TCS on advance receipts levied against scrap sales is a singular tax code, considering the cess requirements, if any. On the scrap sales invoice, Excise and VAT amounts are also applicable along with TCS. If excise is applicable, an excise invoice is generated with a serial number using the series of the ECC selected in the invoice. TCS on latter of these two documents is reversed. A TCS register can be printed to display the TCS on Advances, TCS on Invoices and a negative amount for assignment of Advances to Invoices, showing the net TCS amount. A tax declaration for TCS is performed to display the total amount of TCS to be remitted to tax collection authority. The same tax can be remitted to the government, using the tax declaration procedure. The following functionality is supported: Receipt of Advance to the business partner with Tax Collection at Source (TCS). Generating Manual Sales Invoice for the Business partner with Excise, VAT and TCS. Adjustment of Advance with TCS to Invoice with TCS for a business partner. TCS Tax Declaration TCS Register. You must maintain the following Tax Master data for Direct tax: PAN number of the Business Partner TAN number of the Business Partner PAN number (Own) TAN number (Own) Indirect taxes in India Following are the indirect taxes applicable: Excise Duties Sales Taxes Service Taxes Imports and Customs Duties This document provides an overview of the following functionality supported in this release: Handling complex tax structure for transactions through Aggregate Tax Code. Multiple Tax Registration numbers & Sequential invoice numbering Tax Handling at State Level Defaulting of tax details Assessable value and MRP Excise data Excise registers - RG1, RG 23A/C Excise Invoice (Incoming & Outgoing) RG 23D Dealer Subcontracting Updating RG 1 register Opening balances and inventory adjustments of the registers Tax registers Invoice accrual for tax and other charges Exports Export without payment of duty Export under the claim of rebate Export warehousing Deemed export Using Advanced License Imports Procurement certificate Deemed Imports Advance License Maintenance of Bonds Tax on service orders and service contracts Service tax on transportation Domestic other charges Direct delivery Tax in Projects Multi vendors for a purchase order Indirect Taxation All taxes other than Direct Taxes are Indirect Taxes. These are levied as and when a transaction of purchase or sale of goods and services or movement of goods, occurs. Following are the various taxes applicable: Following are the indirect taxes applicable: Excise Duties Sales Taxes Service Taxes Imports and Customs Duties Excise duties are manufacturing duties. Following are the various types of excise duties: Basic Excise Duty Additional Excise Duty Education Cess on Excise Duty Secondary and Higher education Cess on Excise Duty These duties are charged because the goods are manufactured in India. The duties are administered by the Central Government. Master data setup Excise Registration Number Own Excise Registration Number of Business Partner HSN number of Item Excise Range Details Excise Applicable warehouse (Normal and Dealer) Excise Applicable Item ( Cenvatable and Non Cenvatable) Assessable Value for Item Maintenance of above specified taxes, their rates, effective dates and their nature as claimable and expensed. The following functionality is supported: Purchase transactions with excise duty both Claimable and Expensed. Purchase Return transactions with Excise Duty. Sales transactions with Excise duty. Sales Return Transactions with Excise Duty. Material Transfers with Excise Duty. Rejection of Received goods with Excise Duties. Partial Receipts. Dealer Purchases and Sales transactions. AS SUCH SALES of goods with Excise duties. Maintenance of CENVAT Credit Pool Deferred CENVAT Credit for Capital Items Transfer Deferred Cenvat Credit to Available Credit Tax declaration for Excise Utilization of CENVAT credit pool. Generation of Excise Invoice (Goods Pass Out Document – GPD) for Outgoing Material (Normal and Dealer) Capturing Excise Invoice (GPD) for Incoming Material. Generation of Returnable Gate Pass or 57 F (4) Challan for Subcontracting transactions. Maintenance of PLA Account. Excise Registers RG 23 A/C Part I & II RG 1 RG 23 D Register Sales Register Purchase Register VAT Register |