| # Glossary for Indian localization aggregate tax code A tax code that represents multiple individual tax codes. If more than one tax code applies to a transaction, you can link an aggregate tax code to the transaction. You can define tax codes upto 9 levels in an aggregate tax code. ARE ARE form is a document, that must be enclosed with exports and deemed exports. The document ensures that you must not pay excise duty on the transactions. The two types of ARE documents are ARE-1 and ARE-3. assessable value The base amount on which the tax is calculated. bond A bond is a surety or a security provided to the governing authority, by a manufacturing plant, to remove the goods from its premises without paying basic excise duty, on the condition that the goods are exported. capital item Machinery required for production of goods or for rendering services, including those for replacement or expansion. The machinery can be prime movers, instruments, apparatus and appliances, control gear and transmission equipment and also any auxiliary equipment required for research, testing and quality control. CENVATABLE The goods are called as CENVATABLE when the excise is applicable for them and are used in Production of finished goods which are also excisable. CENVAT credit pool The amount of excise duties accumulated with the receipt of goods which can be set off against the excise duties payable against removal of goods from a warehouse. Credit pool is maintained only for CENVATABLE goods. consignee An individual or organization to whom the goods are delivered. consignment note The document issued by the Goods Transport Agency (GTA) to the consignor against the receipt of goods for transport by road. The consignment note contains the following information: Serial number Name of the consignor and consignee Registration number of the goods carriage in which the goods are transported Details of the goods transported Details of the place of origin and destination Person liable for paying service tax whether consignor, consignee or the Goods Transport Agency. consignor An individual or organization who dispatches the goods. domestic tax Tax rates applied to transactions that for taxation purposes are considered as transactions within a single state. ECC See: Excise Control Code event tax The tax levied when a pre-defined event happens. Example Manufacture of excisable goods in India is a taxable event. The manufacturer must pay excise duty on the manufactured item at the time of removal of the item from warehouse. excisable An item is excisable if it is movable, marketable and specified in the Central Excise Tariff Act. The item is movable and marketable. The item is specified in the Central Excise Tariff Act. Excise Control Code The Excise Control Code (ECC) is a unique number given by the excise authorities to the factory or warehouse or dealer dealing with excisable goods. The number is in the following format: The first ten characters represent the PAN code issued by the Income tax authorities. The next two characters identify the registered entity as following: XM - Manufacturer or warehouse XD - Dealer The last three characters represent a numeric code for each factory or warehouse or dealer with the same PAN. Acronym: ECC excise invoice/Goods Pass out Document (GPD) The document sent by the supplier, along with the excisable goods. It comprises of the list of goods and the amount of excise duty. CENVAT credit is claimed against this document. excise range Excise range is the area in the jurisdiction of an excise official, where the manufacturing unit or warehouse or dealer is located. first stage dealer The dealer who purchases the goods directly from a manufacturer or importer or from any premises where goods are sold on behalf of a manufacturer or an importer . folio The serial number attached to the receipt of each excisable item in a RG 23 D register. It is generally the page number in a manual register. Goods Transport Agency An individual or commercial establishment that provides service for transport of goods by road and issues a consignment note. Acronym: GTA group tax code A tax code that represents multiple individual tax codes. If more than one tax code applies to a transaction, you can link a group tax code to the transaction. Applicable only on the purchase transactions in Infor ERP LN. For example, a group tax code can contain tax codes for: Service tax and Education cess on service tax Tax Deducted Source (TDS) Surcharge on TDS GTA See: Goods Transport Agency HSN code HSN code is a unique eight digit customs classification code given to an item; based on the internationally recognized Harmonized System of Nomenclature (HSN). The code is defined as following for each item: The first two characters represent the Chapter. The 3rd and 4th characters represent the Heading in the above chapter. The 5th and 6th characters represent the Sub-heading in the above heading. The last two characters represent the tariff item listed under the above sub-heading. layer A line in the Aggregate Taxes (tctax0140m000) session which maintains the details of an amount or a tax code. Maximum Retail Price (MRP) The maximum of the retail price; when multiple ‘retail sale price’ is printed on the pack. Usually this is specific to location. multiple tax code Multiple tax codes are applicable on both purchase and sales transactions. For a transaction, the tax codes are used when the 'Kind of Tax' is same for different tax percentages. Personal Ledger Account (PLA) The ledger account maintained by the manufacturer to pay excise duty in cash. Retail Sales Price (RSP) The maximum price at which the goods are sold to the consumer. It includes all taxes, freight, transport charges, commissions, advertising expenses and all other additional charges like delivery, packing, forwarding charges etc. The retail sale price can be different for each state. This is defined in the Item-Sales or Item-Purchase sessions. second stage dealer A dealer who purchases the goods from a first stage dealer. sequence number A unique number used to identify each tax registration number separately. tariff value The item value fixed by the Indian government for the calculation of excise or customs duty. third party business partner A invoice-from business partner by whom the additional costs are incurred. The business partner who is not related to purchase order and you receive a separate invoice from him. Example, an insurance angent. |