India-Specific Setup and Processes

This table lists the country-specific setup and functionality for India.

Purchase Tax This state tax is assessed on the purchase of goods. The buyer pays the tax for goods that they purchase from the dealer, and the dealer remits the collected tax to the tax authorities.

See Understanding Purchase Tax. Tax collected at source

(TCS)

This federal tax is assessed on goods that are purchased by customers. The supplier charges the tax to the customer and remits the amount to the tax authorities.

See Understanding TCS. Tax deducted at source

(TDS) and Works contract tax (WCT)

TDS is a tax that is deducted from income that a company in India pays to a recipient or supplier if the income amount exceeds a specific statutory limit in a financial year. Income might include salary, interest and dividends, payments to contractors and subcontractors, and so on.

WCT is a tax that is assessed on contracts for labor, work, or services. Contracts for work include construction, manufacturing, repair, and so on. This tax is not based on the sale of goods. See Understanding TDS and WCT.

Setup or Process Description

User-defined codes (UDCs)

Set up base-software UDCs with India-specific values, and set up India-specific UDCs for:

■ Legal documents ■ Tax processing

See Setting Up UDCs for India.

Next numbers Set up next numbering schemes for the base software applications that you use, and set up a next numbering scheme to number TDS certificates.

See Setting Up India-Specific Next Numbers. Automatic accounting

instructions (AAIs)

You must set up some base software Automatic accounting instructions (AAIs) before you work with service tax and tax deducted at source (TDS).

See Setting Up AAIs for India.

Legal documents Before you can print invoices, vouchers, and other legal documents, you must set up your system by setting up:

■ Legal document types and relationships ■ Issue places

■ Next numbers ■ Print templates

See Setting Up Legal Documents for Tax and Export Invoices. Landed costs Some tax regimes use landed costs to calculate Indian taxes.

See Calculating Taxes for India Based on Landed Costs.

Advanced pricing Some tax regimes use the Advanced Pricing module in the JD Edwards EnterpriseOne software to calculate the taxes. You define the tax calculations for India by using the JD Edwards

EnterpriseOne Advanced Pricing system, then use an India-specific program to define price adjustments.

See Setting Up the Advanced Pricing System for India Taxes. See Entering Details for Price Adjustments.

Tax types and tax regimes

Set up relationships between tax types and tax regimes, and then set up price adjustments and level costs for the tax type/tax regime combination.

See Assigning Tax Types to Tax Regimes.

See Setting Up Level Costs for Combinations of Tax Types and Tax Regimes.

Address book records Set up tax registration details for companies, customers, and suppliers.

See Setting Up Tax Registration Details.

Invoice processing After you set up legal documents, you can process invoices in India. See Processing Tax and Export Invoices.

Excise taxes Set up your system to process excise tax, including the setup of:

■ Excise units ■ Excise periods ■ Excise accounts ■ Opening balances

■ Chapter numbers and descriptions

See Setting Up the System for Excise Tax.

The JD Edwards EnterpriseOne system for India localization provides programs to enable you to process excise taxes including:

■ Excise tax for 100 percent export-oriented units

See Working with Excise Tax for 100 Percent Export-Oriented Units

■ Excise-exempt consignments

See Processing Excise-Exempt Consignments

■ Excise registers

See Working with Excise Registers

■ Cenvat credit

See Working with Cenvat Credit in India

Service tax To set up your system to process service tax, map business units to service tax operating units.

See Mapping Business Units to Service Tax Operating Units. To process with service tax:

■ Generate reclassification journal entries for service tax

payments.

See Generating Reclassification Journal Entries for Service Tax Payments.

■ Generate reclassification journal entries for service tax receipts.

See Generating Reclassification Journal Entries for Service Tax Receipts.

■ Update service tax balance information.

See Updating Service Tax Balance Information.

■ Generate payments to the Transportation Agency.

See Paying the Transportation Agency. Value-added tax (VAT) Before you process VAT in India:

■ Assign VAT category codes to item numbers.

See Assigning VAT Category Codes to Item Numbers.

■ Map business units to states.

See Mapping Business Units to States.

■ Set up general ledger accounts for VAT and CST transactions.

See Setting Up General Ledger Accounts for VAT and CST Transactions.

■ Set up retention percentages and deferred periods.

See Setting Up Retention Percentage and Deferred Periods for State-Level Constants.

■ Enter opening stock adjustment amounts for VAT credit.

See Entering Opening Stock Adjustment Amounts for VAT Credit.

Sales tax To work with sales tax in India:

■ Enter form details for invoices and vouchers. ■ Calculate offset amounts.

■ Calculate VAT offset amounts.

■ Associate stock transfers to purchase orders.

See Entering Form Details for Sales Tax and Purchase Tax Concession.

See Working with Transactions for Sales Tax. Purchase tax To work with purchase tax in India:

■ Assign form types to vouchers. ■ Enter form details for vouchers.

■ Print the list of items used for personal consumption. ■ Update purchase orders and purchase taxes.

■ Enter direct expenses.

See Working with Transactions for Purchase Tax.

Tax collected at source (TCS)

To work with TCS:

■ Calculate TCS for prepayments. ■ Enter TCS payment details. ■ Update the TCS register.

See Working with TCS Prepayments and Payments. TDS and work-contract

tax (WCT)

Before you process TDS and WCT:

■ Set up suppliers and assign tax types to suppliers. ■ Enter TDS and WCT rates and rate concessions. ■ Enter TDS document company information.

See Setting Up the System for TDS and WCT. To work with TDS and WCT:

■ Calculate TDS on prepayments, expense accounts, and receipts.

See Calculating TDS.

■ Work with vouchers for TDS and WCT.

See Working with Vouchers for TDS and WCT.

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