Company Tax Set Up – A summary of the activity

Through this activity, you can specify and modify various details required to set up a tax process in an organization.

Company Tax Setup: This refers to defining the prerequisites for payroll tax transactions to be carried out for the employees and the employer. The prerequisite information consists of the following:

• TAN

• TDS Circle

•  PAN

• Employer Type

• Address Details

• Authorized Signatory Details

TAN: The “Tax Deduction Account Number” issued by the Income Tax department entitling the person to deduct tax at source if the payments exceed maximum taxable amount. This unique number is quoted in all communications with the Income Tax department like the challans, tax deduction certificates, TDS returns and other notified documents.

Pan:  The permanent account number issued by the Income Tax department identifying an individual. It is a unique ten-digit alphanumeric number and is quoted for every correspondence with the income tax department. For example, AFRPP1595D.

Employer Type: You are to specify the nature of the employer. An employer can be any of the following types namely, “Central Government”, “State Government”, “Local Authority”, ”Central Government company/ Corporation established by a Central Act”, “State Government company / corporation established by a State or Provincial Act”, “Company not failing under Code 04 or 05”, “Firm”; “Individual” and “Any Other”.

Address Details: The location details of the company and other details like the telephone numbers, fax numbers, e – mail id, etc at which the employer can be communicated must be specified.

Authorized Signatory Details: You must specify the list of all the persons who are authorized to sign various statutory forms like Form 16, 24, etc. You can specify the persons responsible at four levels. These can be Employment, “Organizational Unit”, “Department and Work Location” levels.

Getting familiar with the pages inside

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Prerequisites

The “TDS Circle”, “Employer Type”, “State”, “City” and “District” must be defined in the “Create Quick Codes” activity of HR General Masters component.

Department must be defined in the “Create Department” activity.

Work location must be defined in the “Create Work Location” activity.

Employment unit(s) and Organization unit(s) must be defined in the Deployment workbench.

What you can do in this activity

Maintaining company tax setup

Maintain company tax setup

You can maintain company setup details

• Select the company tax setup unit for which the set up has to be created or modified

• Specify the “TAN Number”, “PAN Number”, “TDS Circle” and “Employer Type” details.

• Specify the address of the company

• Specify the details of the person(s) authorized to sign on behalf of the company.