Steps in defining regime setup specific to GST

This tutorial explain the steps in defining regime setup specific to GST

User can configure any new tax regime introduced by the statute by using the Regime definition form. For example, in the current context of GST tax, user can define a new tax regime called India GST and configure the system so to handle the transactions that have the GST applicability.

 
 
Switch to Oracle Financial India responsibility

Click on the Open buttton

Select the Define Regime Menu

Click on the Open buttton

Enter the details as per business requirement -  

Regime Code - User can define a new tax regime code eg. GST, GST Custom, TCS, TDS etc

Regime Name - Captures the Regime Name eg. India GST

Start Date - Start date should be a value prior to which no transactions can be expected

End Date - User can end date the Regime if there are no further transactions having this regime code applicability

Regime Type - User has to pick one of the following values: 

• Transaction Tax - Taxes like Excise, CST, VAT, Customs duty can be mapped to this
• Withholding Tax - Taxes like TDS, TCS can be mapped to this 

Tax Authority - User can pick the relevant Tax Authority value here


Tax Calendar - User can pick the relevant applicable Tax Calendar
Note - Is Mandatory only when the Regime type =’ Withholding Tax’.


Conversion rate type - User can pick the value of applicable Conversion rate type


Rounding Basis  - Is the Selection criteria based on which the tax basis amount will be rounded off.

• Quantity
• Tax amount
• Taxable amount

 Rounded To - User can select the value of nearest rounded to value (e.g.Rupee, Decimal if the rounding basis is Tax amount or Taxable amount) If the Rounding basis = Quantity, then it takes the values ‘Nearest Unit’ or ‘Nearest Decimal’

• Nearest Decimal
  
• Nearest Rupee

 Rounding factor - Can be nearest rupee or 5 rupees or 10 rupees (if the rounding basis  is Tax amount).
 
If ‘Rounded To = Nearest Unit’, it takes the value: 1, 10 or 100


Start Date - Enter the value from which date, the Rounding rules are applicable to the transactions


End Date - Enter the End Date if the user wants to end date the setup


Reporting Type Name - This can be used for storing any business specific reporting requirements


Reporting Code  - This can be used for storing any business specific reporting requirements


Reporting Code Description - Auto populated based on the value selected for Reporting Code  


Start Date - User can key in the Effective Start Date from which, this setup can be made applicable


End Date - User can end date the setup using this value

This completes setup for Regime specific to GST