Specifying tax attributes

You can set attributes for statutory/regulatory taxes in this page. An overview

Select the “Specify Tax Attributes” link in the “Create TCD Codes” or “Edit TCD Codes” page. The “Specify Tax Attributes” page appears.

The system displays the following field:

Date Format

The format in which the date fields appears in this page. This format is displayed from the "User Preferences" business component based on the login user id. In case the format is not defined, the system displays the date format from the “Enterprise Modeling” business component by default.

Enter the following.

TCD #

The identification number of the tax, Mandatory (Alphanumeric, 25).

Note: The TCD # you specify must be of TCD Type “Tax”.

TCD Variant #

The identification number of the TCD variant Mandatory (Alphanumeric, 25).

Select the “Get Details” pushbutton.

The following details are displayed for the specified TCD # and Tax Variant # in the “Tax Code Properties” group box.

Basis	The basis of TCD computation such as percentage based, flat or unit rate.
Tax Key	The identifier of the TCD # and the Tax Variant combination.
Effective From	The start-date of the effective period of the TCD - Variant.
Effective To	The end-date of the effective period of the TCD #. - Variant.

Record/modify the following in the “Statutory Details” group box.

Tax Type	Use the drop-down list box to indicate the type of statutory regulation / type applicable for the organization. Mandatory. The system displays the tax type values mapped for the installation. By default, the system displays the previously saved value.
Applicability	Use the drop-down list box to indicate the transactions in which the Tax is applicable. Mandatory. In the drop-down list box, the system displays, “Sales” and “Purchase Applicability will be loaded based on the Tax Type for e.g for TCS Applicability will always be Sales. For VAT, both Sales and Purchase will be available for selection
Tax Incidence	Use the drop-down list box to indicate the event/stage in the transaction when the tax is applicable, Mandatory. In the drop-down list box, the system displays, On Invoicing – Tax will be computed and accounted in Invoice On Payment - Tax will be computed but accounted in Payment On Delivery - Tax can be applied in Order documents and computed and accounted during receipt of goods.
Tax Nature	Use the drop-down list box to indicate the nature of tax. Mandatory. Tax nature is identified based on the Tax Type. Few Tax Nature are – Payable, Zero sum Game, , Withholding Tax, etc.,
Tax Category	Use the drop-down list box to specify the category to which the tax belongs, such as , Mandatory. Tax Category is identified based on the Tax Type. These are user defined codes to identify the Tax information as required by the respective country regulations.
Tax Class	Use the drop-down list box to indicate whether the tax is applicable to goods or services, Mandatory. Note that Tax Class is identified based on the Tax Type. These are user defined codes to identify the Tax information as required by the respective country regulations.
Tax Invoice on Cust. Receipt?	Use the drop-down list box to specify whether issue of tax invoice is required. The system lists the following options only if “On Payment” is selected as Tax Incidence and Sales is specified as the “Tax Applicability”: Required – Select this option if the user is required to issue a tax invoice. Not Required – Select this option if the user is not required to issue a tax invoice.
Numbering Type	Use the drop-down list box to select a numbering type that is mapped to the relevant transaction for the given TCD Code. The system lists all the values that are in active status as defined for the Transaction Type in the “Numbering Type” business component if “Required” is specified in the “Tax Invoice On Cust. Receipt?” field.

Enter the following in the “Accounting Details” group box.

Exchange Rate Type	Use the drop-down list box to select the type of exchange rate to be used for accounting taxes.. The system lists all the valid exchange rate types as defined in the “Create Exchange Rate Type” activity of the “Exchange Rate” business component if “Payment / Receipt” is selected as the “Tax Incidence”. Data entry in this field is non-mandatory if no value is selected as the “Tax Incidence” Tran. Exch. Rate – Select this option if you wish to use Exchange Rate in the transaction By default the system leaves this field blank.
Accounting Event	Use the drop-down list box to specify when accounting for tax should take place. Data entry in this field is mandatory if “Payment” is selected as the “Tax Incidence” The system lists the following options: On Payment – Select this option if you wish accounting for tax to be on payment On Receipt of Tax Invoice – Select this option if you wish accounting for tax to be on receipt of the tax invoice. By default the system leaves this field blank. Ensure that “On Payment” is selected in this field if the following conditions are true: Tax Incidence is On Payment Tax Nature is Withholding Tax
Exch. Rate Date Ref.	Use the drop-down list box to the select the option for the date to retrieve the exchange rate for tax accounting. Data entry in this field is mandatory if Payment” is selected as the “Tax Incidence”. Liability Date – Indicates the liability date of the Debit Credit document. Realization Date – Indicates the date of payment / receipt of the Debit Credit document. Tax Inv. Receipt Date – Indicates the date of receiving the tax invoice. Ensure that “Tax Inv. Receipt Date” is selected in this field if “On Receipt of Tax Invoice “ is specified as the “Accounting Event”. By default the system leaves this field blank.
Provision Accounting	Use the drop-down list box to specify whether provision accounting is required. Required - Select this option if provision accounting is required while recording invoice. Not Required - Select this option if provision accounting is not required and tax will be accounted during payment.

The system displays the following:

Tax Invoice Window (Days)

The tax invoice window is used as a reference for tax adjustment processing. By default, the system displays the tax invoice window as ‘21’ days, if ‘Tax Type’ is selected as “Malaysian GST”.

Enter the following in the “Computation Logic Details” group box.

Tax Appropriation

Use the drop-down list box to select the tax appropriation for the tax. Mandatory.

In the drop-down list box, the system displays,

“Exclusive” and “Inclusive
Value will be loaded based on the Tax Type.
“Exclusive”, If the Tax Type is “Service Tax”, “TDS”, or “TCS”.
Blank, if the tax type is not specified.

Note: 1) The Basis of the TCD must be “Percentage”, if you want to specify “Inclusive” in the Tax Appropriation field. 2) The Tax Appropriation must be set to “Exclusive”, if the TCD is applicable on “Total Value”.

% of Allowance

The percentage of allowance for the TCD # & Tax Variant # combination. The allowance you specify must be greater than zero, (Number, 19).

Threshold Basis

Use the drop-down list box to select the threshold limit for the tax Mandatory.

In the drop-down list box, the system displays,

“None”, if the Tax Type is “EU-VAT”, “Swiss-VAT”, “Indian-VAT”, “Sales Tax”, “TGS” or “Service Tax”.
“Aggregate”, “Transaction” and “None”, if the Tax Type is “TDS” or “TCS”.
Blank, if the tax Type is not specified.

Threshold Value

The threshold value of the threshold limit for the tax. The value you specify must be greater than zero, (Number, 19).

Rounding off Method - Use the drop-down list box to select rounding off method to be applied for the TCD code.
Ceiling - Select this option if the tax computed has to be rounded off to upper nearest whole number For e.g. 10.2 to be rounded off to 11
Floor - Select the option if the tax computed has to be rounded off to lower nearest whole number For e.g. 10.8 to be rounded off to 10
Nearest - Select the option if the tax computed has to be off to nearest whole number For e.g. 10.8 to be rounded off to 11; 10.2 to be rounded off to 10.
Blank can also be selected.
Rounding off Significance - Use the drop-down list box to select rounding off significance . This is required if the Rounding Off method is ‘Nearest’. This field has option to select the nearest rounding information – 0,10,100 and 1000.

Note: You must specify the Threshold Value, if the Threshold Basis is selected as “Aggregate” or “Transaction”.

Enter the following in the “User Defined Details” group box.

User Defined Detail - 1	Use the drop-down list box to select any additional detail pertinent to the TCD # & Tax Variant # combination. The system displays values defined for User Option 1 in the Maintain User Options activity in the Logistics Common Master component.
User Defined Detail - 2	Additional details pertinent to the TCD # & Tax Variant # combination, (Alphanumeric, 25).
User Defined Detail -3	Use the drop-down list box to select any additional detail pertinent to the TCD # & Tax Variant # combination.
User Defined Detail - 4	Any additional details pertinent to the TCD # & Tax Variant # combination, (Alphanumeric, 25).

Select the “Save Attributes” pushbutton.

The system displays the following under “Record Statistics” group box.

Created by	The login ID of the employee who specified the tax attributes.
Created Date	The date on which the tax attributes was specified.
Modified by	The login ID of the employee who last modified the tax attributes.
Modified Date	The date on which the tax attributes was modified.

Prerequisites

Set the “Statutory Tax Computation and Accounting Required” to “Yes” in the Set Options activity of the Company Parameter Setup component.
Create tax code with the attribute Tax Type set to any statutory tax, such as "VAT".

Specifying tax attributes – An overview

The “Specify Tax Attributes” page enables you to record attributes for statutory/regulatory taxes, such as VAT.

You can specify attributes for a tax key (tax # and tax variant # combination), including Tax type, Applicability, Tax incidence, Tax nature, Tax category, Tax class, Tax appropriation, % of allowance and, Threshold basis and limit.

To access this page, you must set the “Statutory Tax Computation and Accounting Required” to “Yes” in the Set Options activity of the Company Parameter Setup component. This indicates statutory tax reporting is mandatory for the company and hence significant attributes of statutory taxes must be maintained.