Service Tax White Paper R12

7/30/2019 Service Tax White Paper R12

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Service tax functionality in Oracle financials for India White Paper Release 12 Ver 1.0 1

WHITE PAPER

Service Tax Functionalityin Financials for India

Release 12

Prepared by

Author: Krishna Surapaneni Financials for IndiaSupportCreation Date: 27-April-2009Last Updated:Control Number: 1Version: 1Copyright (C) 2009 Oracle Corporation

All Rights ReservedProduct Design and Architecture


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Table of Contents

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

2. INTRODUCTION ......................................................................................................... 43. OVERVIEW................................................................................................................... 5

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

4.1 Regime Registration.............................................................................................. 64.1.1 Service Tax Registration .................................................................................... 6

4.1.2 Assigning Tax Types ......................................................................................... 7

4.2 Customer Additional Information....................................................................... 104.3 Supplier Additional Information ......................................................................... 114.5 Definition of Service tax Authority ..................................................................... 14

5. SIGNIFICANCE OF SERVICE TYPE..................................................................... 155.1 What is Service type.......................................................................................... 155.1.1. Inclusion of Service Types............................................................................. 175.2 SERVICE TYPE REVIEW DURING PERIOD END ....................................... 195.3 ACCOUNTING REVIEW .................................................................................... 20

6. SERVICE TAX ACCOUNTING ............................................................................... 22

6.1 ACCOUNTING ENTRIES .................................................................................. 236.2 SERVICE TAX ACCOUTING PROCESS........................................................ 25

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

8. SERVICE TAX MANUAL ENTRY .......................................................................... 289. SERVICE TAX SETTLEMENT................................................................................ 29

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 ........................................................... 3510.4 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 aninsight into how the new functionality of Service tax regime is built to cover the statutoryrequirement in India.

This paper is functional in nature keeping in sight Oracles existing literature that has adequatedetails on the technical aspect of the Oracle Financials for India, though adequate insight is givento the table level details relevant to the topic. This is more so, in the light of the diagnostic scriptsavaialble in metalink note # 472679.1, thus making table level details easily accessible to theuser. Thus we have tried to handle the topic from the available functionality as well as the dataperspective level.

To prevent this document from becoming too bulky, and also to maintain focus throughout thepaper, the scope of this paper is limited to the basic set up need for defining the Service taxregime, factors to be kept in mind while defining the Service tax regime, Transaction flow and thereports 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 bea 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 whoseimpact will be borne directly by persons. Income tax and Wealth tax are the examples of Directtaxes where levy and recovery will be from the persons directly. Indirect taxes are those taxeswhose 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 ofgoods as part of the price. Similarly Service tax is levied on the service provider whereas theservice provider passes on the burden to service receiver.

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


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3. OVERVIEW

Major features of Service tax functionality provided in the Oracle Financials for India arementioned 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. Itmay be noted that the functionalities mentioned in this note are available as of the date ofpublicaiton of this note and might change based on the amendments made in the relevantstatutes.


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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 wouldbe applicable to all taxes assigned to it. Following figure depicts the regime structure:

DEFINING SERVICE TAX REGIME

Define Regimes

Assign

Orgnaizations

Assign

Organization

Accounts

Assign Tax Types

Assign Tax

Accounts

Registrations

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

4.1.1 Service Tax RegistrationOrganizations have to register with the various Service Tax Authorities. The registration would bethe 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 asRegistration 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 creditdistribution 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 alltransactions to which these taxes are applicable. If the values assigned for a particular tax weredifferent, 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 beassigned. Currently Education cess and Secondary higher education cess are also leviable onthe 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 andLiability Accounts, interim accounts have to be defined that will store the Service Tax which hasnot been paid / received

4.1.3 Assigning Organizations

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

Under the Organization details, User will be able to assign the Inventory Organizations to whichthe 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 taxeswill happen only for the assigned locations.


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Registration details, tax types assignment and the account values assignment can be assigned tothe 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 checkedwhenever default registration values at the regime level are retained. It gets unchecked whenregistration 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 setupneed to be completed for those Customers from whom service tax amount will be recovered. Inthis form, Service tax registration number and the Service tax type applicable for that particularCustomer 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 setupneed 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 inthe transactions. It has to be noted that Service tax codes have to be defined as recoverabletaxes by specifying the credit percentage as 100. Otherwise the accoutning will not happen asmentioned in this document and those taxes will be considered for costing in Procure to pay

cycle.


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

a) Service taxb) Education cess on Service tax

c) Secondary Higher education cess on Service tax.


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4.5 Definition of Service tax Authority

Apart from the above setups, Service tax Authority need to be defined as supplier in Supplierdefinition window. Also supplier and supplier site defined here will appear in the Service taxsettlement window for settling the balances.

After defining the same, click on Organization tab and ensure that Supplier type is selected as

India Service tax Authority.


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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) ofthe Finance act 1994. Type of service is relevant for determining the amount chargeable for taxand 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 servicetypes 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 Services9 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 & Installation34 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


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42 Insurance Auxiliary Service

43 Intellectual Property Services

44 Interior Decorator

45 Internet Cafe

46 Internet Telephony

47 Leased Circuits

48 Life Insurance49 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 Service74 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 certification86 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


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94 Transport of goods in container by rail service

95 Transport of passengers by air embarking in India during international journey

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 foraddition of service types arises whenever Government of India added more services videinclusion in Finance Act. The same can be done using the below steps:

a) Navigate to India Local Purchasing > Asia/Pacific Lookupsb) 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 Receivablestransaction and Sales Order respectively. This defaulted value can be changed in thosetransaction forms. If this setup is not carried out and service type is not mentioned even in thetransaction 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 Supplieradditional information setup. Also the User can change this value. Similarly in Sales Orderlocalized form and Receivables transaction localized form also, User can change the defaultedservice type values. However service type cannot be changed when a RMA is created withreference to Order or Invoice. In this case, Service type of the original order will get copied to theRMA order and is shown in view mode only.


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5.2 SERVICE TYPE REVIEW DURING PERIOD END

Option has been provided to capture the Service type for those transactions where it was eithernot captured during the transactions or could not be captured for any reason. It is recommendedthat before carrying out settlement, review need to be done using the below mentioned screen. Itis 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. Theseare the sources from where service tax repository will be updated. User will be able to query therecords only with Null service type. Also User has the facility to query the records based onOrganization 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 updatedbased on the setup done or a specific service type can be selected. Also by checking the flagDefault only where service type is null, only those transactions where service type is null will beupdated. Otherwise all the transactions will get updated.

This form will also display the transaction level details for all the records that were updated in theservice 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 thosetransactions updated in the repository, on clicking view accounting button, accounting entry forthat particular transaction will be displayed.


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6. SERVICE TAX ACCOUNTING

This section provides an overview on the tax accoutning process. Following figure depicts theAccounting required for Taxes. Normally tax accounting happens along with base transactionaccounting. This varies when the Tax is deferred and can be recovered or the liability arises onlyon 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 tovendors and liability accounting happens on receipts from the customers.

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

Following picture depicts the category of accounting events and their flow

Interim Recovery

AccountingBase Transaction Accounting

Recovery

AccountingRecovery/Liability Event

TAX ACCOUNTING PROCESS

Distribution Tax

Accounting -

Entry to reduce

Tax Credit

Distribution of Tax Recovered

under different Regimes

Interim Liability

Accounting

Liability

Accounting

Distribution Tax

Accounting - Entry

to reduce Tax

Liability

Accounting to

arrive of Net Tax

liability for the

Period

Settlement - Set-off of Tax

recovered against Tax Liability

Payment

Payment of Net

Tax to the

Authorities

Purchase Sale


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6.1 ACCOUNTING ENTRIES

Accounting for Service taxes would be done in two phases. The first would be on the Purchasingand sale event. On initial purchase and sale event, the Service Tax would be debited/credited toan 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 ServiceTax at each event. The Condition field provides information on transaction process or setupvariation that causes difference in accounting entries.

Document Accounting Event Condition Service Tax Accounting

Purchase Order Purchase Order

Receiving ReceiveAccrue on Receiptis 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 toVendor

Debit: AP Accrual AccountCredit: Service Tax Interim Recovery Account

Invoice Invoice Accounting

Receipt MatchedInvoices with'Accrue on

Receipt'

Debit: AP Accrual Account

Credit: Supplier Liability Account

Cancellation

Receipt MatchedInvoices with'Accrue onReceipt'

Debit: Supplier Liability AccountCredit: AP Accrual Account

Invoice Invoice Accounting

PO MatchedInvoices withAccrue on Receiptas No

Debit: Service Tax Interim Recovery AccountCredit: Supplier Liability Account


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Adjustment

PO MatchedInvoices/PeriodEnd Accrual

Debit: Supplier Liability AccountCredit: Service Tax Interim Recovery Account

Cancellation

PO MatchedInvoices/PeriodEnd Accrual

Debit: Supplier Liability AccountCredit: Service Tax Interim Recovery Account

PrepaymentApplication

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

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

Prepayment Unapply

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

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

Payments Payment


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

Payment Maturity


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

Payment Cancellation


This entry would be created with negativeamounts

Debit Memo Debit Memo - RTSAccrue on Receiptis Set to 'Yes'

Debit: Supplier Liability AccountCredit: AP Accrual Account

Refund


This entry would be created with negativeamounts

Sales Order Sales Order

Shipment Pick Release

Shipment

Invoicing AR Invoice AccountingDebit: Receivable AccountCredit: Service Tax Interim Liability Account

AR Invoice

Cancellation

Debit: Service Tax Interim Liability Account

Credit: Receivable Account

Receipt ApplicationDebit: Service Tax Interim Liability AccountCredit: Service Tax Liability Account

ReversalDebit: Service Tax Liability AccounCredit: Service Tax Interim Liability Account

Credit Memo AR CM AccountingDebit: Service Tax Interim Liability AccountCredit: Receivable Account

AR CM CancellationDebit: Receivable AccountCredit: Service Tax Interim Liability Account


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Refund

Settlement DistributionCENVAT toService Tax

Debit: Service Tax Recovered AccountCredit: PLA Account

DistributionService Tax toCENVAT

Debit: PLA AccountCredit: Service Tax Recovered Account

PLA Account defined for the organization isused here

Payment to TaxAuthority

Debit: Tax Liability AccountCredit: Service Tax Liability Account

AAccounting Event. This event triggers Tax Accounting. In case of Recoverable Taxes the TaxAmount 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 Accountingevents. At each run, the program would create accounting and Service Tax repository entries forall eligible transactions.


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7. SERVICE TAX DISTRIBUTION

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

Sr. No. From Org To Org Transfer Type Comments

1 Inventory Organization InventoryOrganization

Service - Service Handled

2 Operating Unit InventoryOrganization

Service Service

Handled


Service Excise Handled


Excise Service Handled

It may be noted that combination # 2 specified in the above table is possible only under thescenario where you were using the financials for India in earlier versions (11i) and later onmigrated to release 12. 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 operatingunits to Inventory organizations, this combination can be used. Post application of the latestpatches, it is not possible to transfer service tax credit from one operating unit to other. It may benoted that prior to carrying out the First settlement balances available in operating units have tobe nullified.

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


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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 businessprocess 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 servicetax 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 thiswindow.

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 InvoicePayment in payables and the Service Tax - Manual Transaction "Payment" entry is just to enterthe payment in to the service tax repository without any accounting entry. Any "Payment" typemanual entry, without a corresponding AP Invoice Payment with appropriate accountingdistribution, 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 forsettlement which will generate an AP Invoice against the Service tax authorities. Settlementprocess 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 andnecessary 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-6challan number and challan date in the fields provided.

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


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

Users can find all the settlements performed from this screen. LOV for Settlement Statuscontains 2 values viz.

Settlement Status Description

Settled This means that AP invoice has been paid andpayment has been processed in the

Settlement Details screen.Payment Due This means the AP invoice has been

paid/unpaid but the payment has not beenprocessed in the Settlement Details screen.

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


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On payment of AP invoice you will again find the AP invoice using the above find window to showthe 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 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


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


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10. REPORTING

The following reports are available currently with respect to Service tax functionality in Financialsfor 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 haveService Tax Type of Taxes, and for which Receipt has been assigned will be considered for thisreport


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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 andreceipt 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 arenot 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.

It may be noted that this report output will capture data only to the extent relevant input data isentered 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 thesystem and hence the same columns in the report will not display any values.


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11. DIAGNOSTIC SCRIPTS

Diagnostic Scripts provides an overview on troubleshooting the service tax related issues usingthe diagnostic scripts provided in metalink note # 472679.1 (Financials for India Diagnosticscripts).

11.1Interpreting PO-AP Diagnostic Scripts

Script Name: loc_diag_po_rcp_R12.sql

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

1. Receipt details:

From the tables JAI_RCV_LINES andJAI_RCV_LINE_TAXES, receipt line details and the

taxes attached to the receipt line can be verified.

2. Tax code Setup:

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

a. Tax_account_id: When the charge account is specified with Mod_cr_percentageless 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 JAI_CMN_INVENTORY_ORGS.

Script Name: R12_loc_aplist R12.sql

The above script needs to be run for an Invoice_id (AP Invoice) and the vendor_id. This scriptlists 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_REGISTRATIONS and JAI_RGM_PARTIES, regime registration setup

details done at inventory organization level can be verified.


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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 taxamounts 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 theservice tax repository data.

Service Tax White Paper R12

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