TDS Setup for Suppliers in R12

8/11/2019 TDS Setup for Suppliers in R12

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TDS Setup for suppliers in R12P O S T E D B Y G O D H A N D S 0 C O M M E N T S

O R A C L E A P F U N C T I O N A L R 1 2 T D S S E T U P

This document explains the basic setup needed to setup TDS for suppliers in

R12.

Setup Steps

1. Pan Number at the Legal Entity level

When Legal Entity is created, enter the Pan Number in the Pan field. This

field is mandatory for India territory.

2. Attach Inventory Organization in Location

Create the inventory organization and attach it with the location. Only those

locations with inventory organization attached will appear in the location field

of organization additional information form.

3. TDS Lookups (Seeded values)
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We need to make sure that the following seeded values are available in

Asis/Pacific Localization lookups.

1.JAI_AP_TDS_SECTION_TYPES

2.JAI_TDS_SECTION

3.

JAI_TDS_VENDOR_TYPE


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TDS Vendor type is used for categorizing vendors from TDS perspective.

TDS Vendor type and TDS section code determines TDS rate and surcharge

based on TDS thresholds defined

4. Create Organization Additional Information and Tax calendar for the

organization

For all inventory organizations, additional localization information needs to be

maintained.

1. We need to define two records here for each organization, one with location and

another without location.

2. Excise details are mandatory for manufacturing organization

3.

For trading organization, excise tab details should not be filled and trading

information tab should be entered.

4. Pan No, Tan No, Ward No are currently redundant and not used

5. Only one tax calendar can be active at a time.


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5. Create Regime Registration for TDS

Query the recode with Regime code as TDS. All the details except registration

value in the registration tab will be defaulted. Enter appropriate registration

value against the registration name. These details would get defaulted for the

operating units and can be changed, if required.

6. Enter TDS Period

We need to enter the TDS period for calculating the TDS amount for the period.

TAN number will be available in the LOV only if regime registration is

completed for TDS.


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7. Create TDS Authority as Supplier

We need to create a supplier with supplier type as India TDS Authority. Enter

all the mandatory fields like payment method, payment terms etc.

Other suppliers are entered as usual.


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8. Create a Tax definition

We need to create different tax codes for different section codes and tax rates.

Enter the basic percentage in the Percentage field and enter additionalsurcharge details. System will automatically calculate the total percentage. If

any lower TDS is involved for certain forms like Form C, enter the certificate

name and original tax percent.

9. Create Threshold Setup

Threshold is defined for each section by TDS vendor type. Thresholds

applicable to specific vendors are defined as exception setups and vendors are

assigned manually to this setup.

There are two types of Thresholds

1. SingleApplicable to a Single transaction

2. Cumulative In this case, TDS is applicable only when the cumulative

purchases made from the supplier in one financial year exceeds specified limit

i.e, Cumulative threshold amount.


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Multiple thresholds withdifferent tax ratesmay exist. For example, tax rate is

12 percent for the cumulative amount below 10L and tax rate of 12.24 percent

for the cumulative amount above 10L.

Before cumulative threshold is reached, single invoice amount greater than the

threshold limit for a single invoice attracts TDS at predefined rate

Threshold Amount = Total Invoice AmountTotal Invoice Cancelled Amount

Total Invoice Apply Amount + Total Invoice Unapply Amount

10. Create Supplier Additional Information

We need to add Pan Number, TAN number and TDS Details for each supplier.

We should create two records for each supplier, one without supplier site and

another with supplier site. Pan number should be confirmed at the supplier

level and it can not be modified thereafter.

Enable invoice approval checkbox, if TDS invoice created for the supplier

should be in approved status.

Enter the default TDS Section and/or Tax name, if TDS tax code should beautomatically defaulted in the invoice for this supplier. Tax code defaulting

logic is given below.

If default section and default tax name are not given in the supplier additional

information and if tax name is not manually entered in the invoice, then TDS

will not be calculated and no TDS invoice will be generated.
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11. Review and Complete DFF and Profile Settings

TDS tax code is now captured in Global Descriptive Flexfield in the invoice

distribution screen. We need to make sure that the

DFF JG_AP_INVOICE_DISRIBUTIONSis enabled.


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Also define the following profile option values at the responsibility level

Profile Options Values

JG: Application Payables

JG: Product Asia Pacific Localization

JG: Territory India

The country used against the Legal entity / Operating unit has to be India

Invoice Transaction

Let us now create an invoice for the Google supplier.

Invoice Amount90000

TDS Tax rate12% if the invoice amount is above 50001

Hence the TDS Invoice amount will be 90000 * 0.12 = 10800

Make sure that the taxation country is defaulted as India


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As soon as the invoice distribution details are saved, the tax code ID is

defaulted in DFF as shown below. The user can change the tax code, if

required.

When the invoice is validated, system will run a concurrent program which will

create TDS invoice (Credit Memo) for the supplier and another standard invoice

for the TDS authority.


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Click on View Output for Import TDS Invoices concurrent program to check

for any errors. The report shows all the imported and error lines.

The invoice number format for the credit memo for the supplier and standard

invoice for the TDS authority is given belowSupplier Credit Memo: (Original Invoice Number)-TDS-CM-(Serial Number)

Invoice for TDS Authority: (Original Invoice Number)-TDS-SI-(Serial Number)

References

1. Oracle Financials for IndiaImplementation Guide

2.

Oracle Metalink Docs

TDS Setup for Suppliers in R12

Documents

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