Tax Setup – An overview

Introduction

There are varying tax legislations and multiple tax implications in different countries. This component proposes a single global tax solution to cater to the requirements of most popular taxation systems of the Globe such as VAT, GST, TDS, TCS, Service Tax and Excise. This solution covers Tax Configuration, Tax Calculation and Tax Transaction Booking and Tax Reporting. The component also provides means for easy modification of Tax Rules and Tax Amendments using the Configurable Masters and the flexible Calculation Procedures.

Tax Setup is a master component, where definition of Tax Type, Tax Region (where declaration need to be made), Tax Community (Group of Tax Regions), Tax Category, Tax Class and Tax Calendar take place.

Feature Highlights

• Support for Tax Declaration period definition

• Support for defining a unique ID for the Tax declaration year

• Provision to capture the description, Start and End date for the declaration year

• Support for automatically defining unique period codes for each declaration periods within a declaration year

• Support for definition of Standard Tax calendar through predefined frequency as Fortnightly, Monthly, Half yearly or Yearly.

• Support for definition of Customized Tax calendar by specifying Number of days.

• Provision to default the Financial Year and periods from the Financial Calendar Definition (based on a one time company level parameter)

• Provision to automatically calculate the Start Date of each period.

• Provision to define periods sequentially, i.e., the Declaration periods defined should be continuous.

• Provision to capture a 'Pay Due Date' on which the crystallization of tax liability happens.

• Support for the following status for a Tax declaration period as: ‘Draft’, 'Fresh', 'Active', 'Declaration in Progress', 'Declared', and 'Closed'

• Support for the following status for a Tax Declaration Year: ‘Draft’, 'Fresh', 'Active', 'Declared' and 'Closed'

• Provision to store and display modification history for every declaration year.

• Provision to modify details of a declaration year / period if the associated periods are in ‘Draft’ or 'Fresh' ' status.

• Provision to delete a declaration year if the associated periods are in ‘Draft’ or 'Fresh ' status.

• Provision to Map Tax Region to Declaration Calendar

• Provision to copy the declaration year from one company to other companies

• Support for user definable Tax Category (in addition to pre-defined)

• Support for user definable Tax Class (in addition to pre-defined)

• Support for mapping Tax Class to Tax category (user defined Category-Class mapping)

• Support for Tax Category, Tax Account type mapping, confirming to the requirements of all Tax Types

• Support for viewing the Tax Account Types valid for a Tax Category

• Support for mapping Tax Account Types to user definable Tax Category

• Support for user defined descriptions for Tax Core Category

List of Activities