India Localization

Value Added Tax (VAT)

User Manual

Page 1
India Localizations (Xe, 8.0, 8.9, 8.10)

Copyright © 2006, Oracle. All rights reserved.

The Programs (which include both the software and documentation) contain proprietary information; they are provided under a license
agreement containing restrictions on use and disclosure and are also protected by copyright, patent, and other intellectual and
industrial property laws. Reverse engineering, disassembly, or decompilation of the Programs, except to the extent required to obtain
interoperability with other independently created software or as specified by law, is prohibited.

The information contained in this document is subject to change without notice. If you find any problems in the documentation, please
report them to us in writing. This document is not warranted to be error-free. Except as may be expressly permitted in your license
agreement for these Programs, no part of these Programs may be reproduced or transmitted in any form or by any means, electronic or
mechanical, for any purpose.

If the Programs are delivered to the United States Government or anyone licensing or using the Programs on behalf of the United
States Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTS

Programs, software, databases, and related documentation and technical data delivered to U.S. Government customers are
“commercial computer software” or “commercial technical data” pursuant to the applicable Federal Acquisition Regulation and
agency-specific supplemental regulations. As such, use, duplication, disclosure, modification, and adaptation of the Programs,
including documentation and technical data, shall be subject to the licensing restrictions set forth in the applicable Oracle license
agreement, and, to the extent applicable, the additional rights set forth in FAR 52.227-19, Commercial Computer Software--Restricted
Rights (June 1987). Oracle Corporation, 500 Oracle Parkway, Redwood City, CA 94065.

The Programs are not intended for use in any nuclear, aviation, mass transit, medical, or other inherently dangerous applications. It
shall be the licensee's responsibility to take all appropriate fail-safe, backup, redundancy and other measures to ensure the safe use of
such applications if the Programs are used for such purposes, and we disclaim liability for any damages caused by such use of the
Programs.

The Programs may provide links to Web sites and access to content, products, and services from third parties. Oracle is not
responsible for the availability of, or any content provided on, third-party Web sites. You bear all risks associated with the use of such
content. If you choose to purchase any products or services from a third party, the relationship is directly between you and the third
party. Oracle is not responsible for: (a) the quality of third-party products or services; or (b) fulfilling any of the terms of the
agreement with the third party, including delivery of products or services and warranty obligations related to purchased products or
services. Oracle is not responsible for any loss or damage of any sort that you may incur from dealing with any third party.

Oracle, JD Edwards, PeopleSoft, and Retek are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be
trademarks of their respective owners.

Open Source Disclosure

Oracle takes no responsibility for its use or distribution of any open source or shareware software or documentation and disclaims any
and all liability or damages resulting from use of said software or documentation. The following open source software may be used in
Oracle's PeopleSoft products and the following disclaimers are provided.

This product includes software developed by the Apache Software Foundation (http://www.apache.org/). Copyright (c) 1999-2000
The Apache Software Foundation. All rights reserved. THIS SOFTWARE IS PROVIDED “AS IS’’ AND ANY EXPRESSED OR
IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE APACHE SOFTWARE
FOUNDATION OR ITS CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL,
EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF
SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER
CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING
NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF
THE POSSIBILITY OF SUCH DAMAGE.
 India Localization – Value Added Tax

Table of Contents

INTRODUCTION.....................................................................................................4
BUSINESS FUNCTIONALITY ...................................................................................................... 4
COMPARISON BETWEEN VAT SYSTEM & EXISTING SALES TAX SYSTEM ........................................... 4
PRESENT - STATE SALES TAX DESIGN ...................................................................................... 5
PROPOSED STATE VAT SYSTEM FROM 1-4-2005....................................................................... 6
ITEMS ELIGIBLE FOR VAT SET OFF ........................................................................................... 6
ITEMS NOT ELIGIBLE FOR VAT SET OFF ..................................................................................... 6
DOCUMENTATION RECORDS..................................................................................................... 7

IMPACT ANALYSIS.............................................................................................8
OPERATIONAL IMPACT ON DEALERS.......................................................................................... 8
IMPACT ANALYSIS ON THE EXISTING SET UPS .............................................................................. 8
DIFFERENT RATES & POLICIES IN STATES ................................................................................... 8

SETUP ........................................................................................................................10
ASSIGNMENT OF SUPPLIER TAX IDENTIFICATION NUMBER
ITEM CATEGORY ................................................................................................................. 10
RETENTION PERCENTAGE ON INTERSTATE TRANSFER AND DEFERRED PERIOD FOR SETOFF ON CAPITAL
GOODS ............................................................................................................................. 11
ASSIGN PRICE/COST ELEMENTS............................................................................................. 12
OPENING STOCK ADJUSTMENT ............................................................................................... 13

DAILY PROCESSING: TRANSACTIONS...........................................17

SALES ............................................................................................................................. 17
VAT Sale Update..............................................................................................Error! Bookmark not defined.
Sales Tax Updation ............................................................................................................................................19
Form Entry...........................................................................................................................................................20
Form Details........................................................................................................................................................21
Sales Returns & Form Revision.......................................................................................................................22
Stock Transfer .....................................................................................................................................................22
PURCHASE........................................................................................................................ 28
VAT Purchase Update........................................................................................................................................28
Assign Form Type ...............................................................................................................................................29
Assign Form Details...........................................................................................................................................31
Personal Consumption Transactions .............................................................................................................31

PERIODIC PROCESSING .............................................................................33

SPECIFIC VAT REPORTS....................................................................................................... 33
Registration Numbers........................................................................................................................................33
SALES ............................................................................................................................. 34
Setoff Report ........................................................................................................................................................34
Sales Tax Details (Without Vat) ...................................................................Error! Bookmark not defined.
Sales Tax Summary (Without VAT) ..............................................................Error! Bookmark not defined.
Sales Tax Details ( With VAT ) ......................................................................Error! Bookmark not defined.
Sales Tax Summary (With VAT) ....................................................................Error! Bookmark not defined.
VAT Register of URD Purchases ......................................................................................................................37
Forms Pending....................................................................................................................................................38

Forms Received...................................................................................................................................................39

Page 2
 India Localization – Value Added Tax

Follow up Letter .................................................................................................................................................40

VAT Register with Interstate Stock Transferred Items.................................................................................42
PURCHASE........................................................................................................................ 49
Register for Capital Goods Local Purchases................................................................................................49
VAT Register with Personal Consumption Items..........................................................................................51
Vouchers for which Form Outstanding ..........................................................................................................52
Vouchers for which Form Outstanding Detail..............................................................................................53
Voucher for which Form Issued .......................................................................................................................54
VAT Detail for Purchase.................................................................................Error! Bookmark not defined.
VAT Summary for Purchase ..............................................................................................................................56
Purchase Tax Details (Without VAT)...........................................................Error! Bookmark not defined.
Purchase Tax Summary (Without VAT) .......................................................Error! Bookmark not defined.

Page 3
 India Localization – Value Added Tax

Introduction
Value Added Tax (VAT) is a form of sales tax. It is collected in stages on
transactions involving sales of goods. Tax paid on purchases (input tax) is rebated
against tax payable on sales (output tax). VAT is levied on sales of all taxable
goods. VAT is not levied if sales of goods are not made in the course of or in
furtherance of business

Business Functionality

• It is a multipoint tax system with setoff available for tax paid on corresponding
purchases.

• The full tax is collected at each transaction but paid on the value added portions
only. Therefore it is called as value added tax or vat.

• No input tax burden.

• The tax is levied on the final consumption. The final burden of the sales tax is fully
borne by the local consumer.

• As an exception no vat is charged on goods exported. The cumulative input tax

burden would be refunded to the exporter.

Comparison Between VAT System & Existing Sales Tax

System
DESIGN OF STATE VAT SYSTEM
(TO BE IMPLEMENTED BY THE STATES FROM 1-4-2005)

• Few exemptions available

• No local declaration forms, which allow, making confessionals or tax-free

purchases.

• There will be few tax rates on the commodities

• 0% - essential commodities

• 4% - basic raw materials, industrial inputs

• (1% for gold & silver articles & 20% liquor)

Page 4
 India Localization – Value Added Tax

• Vat = (o - i) where o-output tax, i - input tax

• Retention by the state govt. on local inputs when the corresponding finished
goods are transferred to outside the state branches / depots (no full input tax
credit to such manufacturers)

Present - State Sales Tax Design

• Resales - single point taxation system of sale tax

• Concessional forms for purchases particularly for incentive units.

• Many tax rates - turnover tax, surcharge, and resale tax.

VAT is chargeable if the sales of goods –

• are made by a VAT dealer in the State

• are made in the course of or in furtherance of a business; and

• are not specifically exempt or zero-rated.

Sales of goods made in/ or from the State, which are not exempt, are taxable sales.

Sales are outside the scope of VAT if they are –

• made by someone who is not a VAT dealer ;

• not made in the course of or in furtherance of business

Other than your normal business sales, you should also account for VAT on the
following sales:

• Sales to your staff or sales from vending machines;

• Sales of business assets (e.g. Equipment, furniture, commercial vehicles)

• Sales under Hire-purchase agreement or lease of goods to someone else

Page 5
 India Localization – Value Added Tax

Proposed State VAT System From 1-4-2005

Items Eligible for VAT Set Off

• Raw materials

• Capital goods e.g.: machinery, equipment for use in the business

• Packing material

• Tools and accessories used in the business

• Goods for resale.

Items not Eligible for VAT Set Off

• Food, beverages and tobacco products

• Goods used for personal consumption or provided free of charge as gifts

• Goods purchased and accounted for in the business but utilized for the
purpose of providing facilities to employees including any residential
accommodation.

The set off period for Capital goods & retention percentage on interstate transfer
may vary from state to state & for clarification the set off rules for the corresponding

Page 6
 India Localization – Value Added Tax

state need to be taken into consideration. For all above examples the percentages
are taken for clarification purpose only.

Proof to Claim Tax

You must have an original tax invoice to substantiate a claim for input tax credit.

Documentation Records

• Vat (Tax) Invoice (Same as current invoice with the heading Tax Invoice)

• Purchase Register (Set Off)

• Sales Register

• Vat Registration Certificate (Tin No)

• Proof of Tax payment.

Page 7
 India Localization – Value Added Tax

Impact Analysis
Operational Impact On Dealers
• Rate of local sales tax of commodities (no TOT / surcharge)

• No local forms for purchases at concessional rate

• Sales tax burden for interstate purchases

• Full setoff available on local purchases of capital assets.

• Vat invoices from vendors - more details on invoices.

• No Resale - full sales tax on ‘Resale’ of the traders - VAT payment

• Simplified Tax Structure

Impact Analysis on the existing Set Ups

Following details required for calculation of VAT set off.

• List of Purchase order details & input tax for locally purchased Items eligible
for VAT setoff.

• List of Capital Goods & set off amount.

• List of Stock Transfer order details including respective purchase details.

• List of Purchase orders details for Personal Consumption items, which are
not eligible for VAT set off.

Different Rates & Policies in States

The original idea behind VAT system was to have uniform tax structure, policy and
methodology across the country. Where as study on proposed drafts and VAT bills
of different state reveals that there is no uniformity. Followings are some points
explaining the same.

• Some states have mentioned 36 months period for claiming set off on
purchase tax paid on Capital Goods (Example: Maharashtra) where as
some states are allowing set off within same financial year.

Page 8
 India Localization – Value Added Tax

• The percentage of input tax to be retained by state government in case of

stock transfer is not same.

• Since all the states are not implementing VAT from 1st of April, there is
going to be different sales tax liabilities of company having branches in
different states, for similar transactions.

Page 9
 India Localization – Value Added Tax

SETUP
Assignment of Supplier Tax Identification Number

This application is used to enter Tax identification number and Sales Tax authority
Information. Tax authority selection can be done through UDC 75I/TA.

Getting there go to G75I->VAT-> Supplier registration No.

Purpose: To maintain the tax identification number

Date Field is mandatory.

Item Category

• Set Up for Eligible/ Exempted / Capital Items.

• Getting there: go to G75I->VAT-> System Set Up -> Item Category

Relationship

Page 10
 India Localization – Value Added Tax

Select Item and Business Unit for which Category Code is to be defined. In the next
form enter the Category code for the Item and Business Unit relationship.

Retention Percentage on Interstate Transfer And Deferred

period for setoff on capital goods

The state UDC 2nd Description and Special Handling code will be used to mention
the retention percentage in case of stock transfer. For example- In case of interstate
transfer, Maharashtra government retains 4% tax and remaining is allowed as
setoff.

Purpose of this application is to give a tool to user to store state wise retention
percentage on interstate transfer transactions.
From Fast Path type UDC. In 00/S select state & put the retention percentage in
case of interstate transfer in 2nd description.

Page 11
 India Localization – Value Added Tax

Assign Price/Cost Elements

This set up provides user to set up individual component against particular

category. User is supposed to pick component from landed cost rule as well as for
adjustment schedule.

Page 12
 India Localization – Value Added Tax

Opening Stock Adjustment

This Setup application is optional and can be used if user wants to carry forward
some claims for opening stock of previous financial period. The Amount user puts
during this application will be reflected in carry forward column of Current financial
period.

Page 13
 India Localization – Value Added Tax

Note: - This is a one-time Set-Up application, and should be done before

making any VAT transactions.

State / Business Unit Cross Reference

This set up application is developed to build the relation between the State and
Business Unit. One state can have single Business Unit but One Business Unit
cannot be in Multiple State.

Page 14
India Localization – Value Added Tax

Page 15
 India Localization – Value Added Tax

VAT / CST Account Master Set Up

To provide the Reconciliation report in VAT module one need to have the Object
Account information for the same. This application is developed to catch that
information. VAT and CST accounts are to be added for Payables and
Receivables. The key field is Company. The accounts are to be added Company
wise.

Page 16
 India Localization – Value Added Tax

Daily Processing: Transactions

Sales
VAT Sale Update

Proof mode shows the data, which is moving to database finally.

Select from which header file use wants to purge data to Localization. There are two
different reports for this purpose.
One for which uses F4211 as a base file and one, which uses F42119 as a base
file. The working for both the reports is similar.

The application moves the data of which is having one component of VAT. System
identify on the basis on Assign Price, Cost Setup

Page 17
 India Localization – Value Added Tax

Also the report checks whether the Item Category Relationship has been
established or not. If the Item category is not set up then the above report fires and
an additional Exception report is generated. The generated report will show the
entries for which Item Category Relationship has to be established.

Page 18
 India Localization – Value Added Tax

Sales Tax Update

Select the Processing option for the Base Table reference. The data will be picked
up from the corresponding table i.e. F4211 or F42119.

Select the row for which you want to enter the form type. Here on the Click of “Select
Button” one message box will be popped up indicating that all the records for that
Company, Business Unit and Supplier will be transferred to the next form for Form
Type entry.

After Sales update, the data related to CST gets updated. For the CST transaction
we enter form type.

From the form entry screen, select the invoices. Click on add, it further opens up
following screens

Page 19
 India Localization – Value Added Tax

Form Entry
Select the record for which form detailed information is needed.

Page 20
 India Localization – Value Added Tax

Form Details
Here the user puts the Form details, which he has received from the supplier. These
details include Form number, Form Receipt Date and the information of Issuing
State.

CST Sales Update (Non 4%)

Proof mode shows the data, which is moving to database finally.

Select from which header file use wants to purge data to Localization. There are two
different reports for this purpose.
One for which uses F4211 as a base file and one, which uses F42119 as a base
file. The working for both the reports is similar.

Page 21
 India Localization – Value Added Tax

Sales Returns & Form Revision

In case of Sales Return select the transaction on the basis of Local/Interstate. Select
the transaction and click on Sales Return.

Stock Transfer
Getting there: From daily processing of VAT module select application P75I213A.
The following screen appears. Enter the order no. Click find & the details appear in
the grid.

Page 22
 India Localization – Value Added Tax

Stock Transfer Transaction

Select the document type for stock transfer.
Select the table from which data will be picked.

Select any Stock transfer document. Double click on it. It will further open new form.
The quantity, which shows in header section, is stock transfer quantity. In the grid
line adjust those quantity from respective purchase order.( In case stock transfer has
done from multiple purchase orders and same lot no).

Page 23
 India Localization – Value Added Tax

User needs to enter the state from which particular item is supplied i.e. Plant state.

Page 24
 India Localization – Value Added Tax

Advance Tax Payment Entries

Sometimes in the Month of March Government has provided the facility to

pay the tax of March in Advance. The application facilitates the user to do that. On
the basis of Month, Year and Business Unit Advance Tax can be paid.
Then during the actual payment situation the tax which is paid in Advance is
adjusted.

Deferred Input Tax Claims

Once the user has the individual report for different type of VAT transaction. . The
user needs to maintain the information for the claims/Refunds.
This application shows user different claims status, and here user can put the
amount he has claimed /refunded from the government.

On Basis of Monthly, Quarterly and Annual Basis user can run this application. The
claim terms can be selected through the processing options.

Page 25
 India Localization – Value Added Tax

Here User is supposed to select data based on BU, and period basis.

Double click the amount grid line. This will further open another form on which user
can make entries for the submitted amount.
This Form will have entries for Payables, Direct Expenses, Advances, Net
Payables, Amt to be (Paid/Collected) & Carry Forward (applicable for Next
month/Quarter/Year)

The Calculations for the current (month/Quarter/Year) entries will be,

(i) (Payables + Direct Expenses) – (Advances) = Net Payables.
(ii) Net Payables – (Amt to be paid/collected) = Carry Forward.

Further in the same form updation of entries on amounts (Paid/Collected) for the current
(month/Quarter/Year) is allowed till next (month/Quarter/Year) entries are carried out.

Page 26
 India Localization – Value Added Tax

The form has been shown as below.

The last column shows the carry forward, and will be applicable for Next
month/Quarter/Year.

Page 27
 India Localization – Value Added Tax

Purchase
VAT Purchase Update

Select proof mode to see the details of data, which is moving to Localization table.
Application moves the data in Localization table, which are having one component
as VAT. The system tracks the VAT data according to the assigned price Cost
Setup.

Also the report checks whether the Item Category Relationship has been
established or not. If the Item category is not set up then the above report fires and
an additional Exception report is generated. The generated report will show the
entries for which Item Category Relationship has to be established.

Page 28
 India Localization – Value Added Tax

Assign Form Type

The transactions, which are falling under CST category needs to be assigned with a
Form type and it details.

Select the row for which you want to enter the form type. Here on the Click of “Select
Button” one message box will be popped up indicating that all the records for that
Company, Business Unit and Supplier will be transferred to the next form for Form
Type entry.

Page 29
 India Localization – Value Added Tax

Here User puts the specific Form Type, which is needed according to transactions.

Page 30
 India Localization – Value Added Tax

Assign Form Details

Here the user puts the Form details, which he has to issue to the supplier. These
details include Form number, Form Date and the information of Issuing State.

Personal Consumption Transactions

Setoff is not allowed on items used for personal consumptions.

Purpose of this application is to display all the purchase transactions to the user
based on selection and allow the user to select the purchase records, which are
used for personal consumption. Even user will be allowed to change quantity
because it is possible that all the goods are not used for personal consumption.
Purchase Order will be displayed for selection till a single personal consumption is
made from it.

Getting there: From daily processing of VAT Module select the personal transaction
option. Based on information entered in header the grid will show all the records.

Page 31
 India Localization – Value Added Tax

Select particular transaction. The new form will display the issue transactions & all
the purchase records for that item in that branch plant. When user puts the quantity
of personal consumption, the corresponding tax amount is changed.

CST Purchase Update Non 4%

Select proof mode to see the details of data, which is moving to Localization table.
Application moves the data in Localization table, which are having one component
as VAT. The system tracks the VAT data according to the assigned price Cost
Setup.

Page 32
 India Localization – Value Added Tax

Periodic Processing

Specific VAT Reports

These are few specific VAT related report, on basis of that consolidated VAT
credit/Refund can be calculated. These are as follows:

• Register: Personal Consumption – R75I2134

• Register of Interstate Stock Transfer – R75I213
• Register: Capital Goods Transactions – R75I211
• Register of purchases from VAT unregistered dealer – R75I2213R
• VAT Setoff – R75I2213

Registration Numbers

Page 33
 India Localization – Value Added Tax

Sales
Set - Off Report

VAT Register with Setoff for Locally Purchased Eligible items

Set off Report (State / Business Unit / Tax Rate)

The report shows the break up on State, Business Unit and Tax Rate.

Processing Options

If user keeps sales order document type blank, it displays the data for all document
type.
User can select one specific document type or multiple document type by
separating with comma (,).

Also Select the Month and Year for which the report is to be run.

For Rate wise report. The user needs to select FACTOR VALUE from the data
selection.

Page 34
India Localization – Value Added Tax

Page 35
 India Localization – Value Added Tax

Sales Tax Details

The report is common to print all transactions such as VAT, CST and CST non 4%.
It is to be defined in the processing option. Keeping the processing option blank will
print the data for all transactions.

Page 36
 India Localization – Value Added Tax

Sales Tax Summary (CST / VAT)

The processing options are same as that of Sales Tax Detail Report.

VAT Register of URD Purchases

Page 37
 India Localization – Value Added Tax

Forms Pending

Invoices for which forms are pending.

One separate version is created for Microsoft Excel Output. The user can
manipulate the data as per the requirement.

Page 38
 India Localization – Value Added Tax

Forms Received
The report gives the details if Form which the customer has issued against the
invoices.

One separate version is created for Microsoft Excel Output. The user can
manipulate the data as per the requirement.

Page 39
 India Localization – Value Added Tax

Follow up Letter

Page 40
 India Localization – Value Added Tax

30/3/2005

To
Capital System
400 Broadland Road NW
Line 2
Line 3
Line 4
Atlanta GA
30342

Subject: Pending Sales Tax Declaration Forms

Dear Sir / Madam,

Given below are the details of invoices against which sales tax forms, have not yet been
received from you.

Invoice No. Invoice Date Invoice Amount Sales Tax Sales Tax Rate Form

4348 30/03/05 287,045.43 CST 4.00 C

In case you have already sent the same, Kindly intimate the details to us.

Thanking You.

Yours Sincerely,

For Financial Company

Page 41
 India Localization – Value Added Tax

VAT Register with Interstate Stock Transferred Items

(Stock Transfer Details)

Select the processing options for the month and Year.

Page 42
 India Localization – Value Added Tax

Deferred Input Tax Claim Report

Based on entry made by the user. This report is generated based on State, BU and
on yearly basis.
This shows the details of Net Amount Payable, Amount paid / collected and the
carry forward amount.

Page 43
 India Localization – Value Added Tax

Reconciliation Report – Receivables

The Reconciliation reports helps to cross check the data in VAT as well as CST
module with S&D and G/L in base software system.

Page 44
 India Localization – Value Added Tax

VAT RECOVERY PROCESS - ONLINE CLAIM

Create Receipt
Create PO with Open Claim VAT
through Receipt
VAT Taxes screen
Localized screen

Enter VAT Invoice Creates VAT

Save
details Interim Accounting

Creates VAT
Recovery
Claim
Accounting and
Repository Entries

VAT RECOVERY PROCESS - DEFERRED RECOVERY

Creates VAT
Access Claim
Enter VAT Invoice Recovery
VAT screen using Claim
details Accounting and
Menu
Repository Entries

Page 45
 India Localization – Value Added Tax

Purchase Returns

When user wants to do Purchase return this application is used. On basis of CST as
well as Vatable purchase the user can select the transactions.

Select the transaction, for which you want to do purchase return,

Click on Purchase return of Exit Bar.

Similarly for CST and CST Non 4% transaction, select the transaction it opens other
form showing the C form details attached to the transaction. User can enter the
existing transactions.

Page 46
India Localization – Value Added Tax

Page 47
 India Localization – Value Added Tax

Report for Sales Against Exempted Items

The item that falls under Exempted item category, there is no tax applied on it.

The basic Set up required for this report is that for Exempted Items the Category
Code ‘X’ needs to be set up in Item Category Relationship application. The report
shows exempted Item Sales Details.

Sales Against Trading Items

No VAT is charged against Trading Items. The report shows the Sales details
against trading items. The first step needed in this case is all the trading items are
to be categorized as ‘T’ in the Item Category relationship. Building the relationship
is must for running the report.

Page 48
 India Localization – Value Added Tax

Purchase
Register for Capital Goods Local Purchases
This will show VAT paid for capital items. The complete purchase tax amount is
available for set off

Page 49
India Localization – Value Added Tax

Page 50
 India Localization – Value Added Tax

The report gives the details State wise and Business Unit wise.

VAT Register with Personal Consumption Items

Page 51
 India Localization – Value Added Tax

Vouchers for which Form Outstanding

Export to Microsoft Excel is provided with different version so that user can
manipulate the data.

Page 52
 India Localization – Value Added Tax

Vouchers for which Form Outstanding Detail

Export to Microsoft Excel is provided with different version so that user can
manipulate the data.

Page 53
 India Localization – Value Added Tax

Voucher for which Form Issued

Export to Microsoft Excel is provided with different version so that user can
manipulate the data.

Purchase Tax Detail (CST / VAT)

The report Purchase Tax Details is common to VAT and CST. Based on the
Processing option the report is run. User can set the processing option as VAT,
CST, CST Non 4% and all.

Page 54
India Localization – Value Added Tax

Page 55
 India Localization – Value Added Tax

VAT Summary for Purchase

Purchase Summary report gives the summary of tax on the basis of Business Unit
for the given date selection in the processing options.

Page 56
 India Localization – Value Added Tax

Reconciliation Report – Receivables

The Reconciliation reports helps to cross check the data in VAT as well as CST
module with S&D and G/L in base software system

Page 57
 India Localization – Value Added Tax

Void Vouchers Report

The report shows all the Vouchers, which are voided in base software system with
respect to Localization module.

With reference to this report User can access the Purchase Return and Form
Revision Application (P75I2137) and Void the respective Purchase Orders.

Page 58
 India Localization – Value Added Tax

Report for Purchase Against Exempted Items

The item that falls under Exempted item category, there is no tax applied on it.

The basic Set up required for this report is that for Exempted Items the Category
Code ‘X’ needs to be set up in Item Category Relationship application. The report
shows exempted Item Purchase Details.

Page 59
 India Localization – Value Added Tax

Purchase Against Trading Items

No VAT is charged against Trading Items. The report shows the Purchase details
against trading items. The first step needed in this case is all the trading items are
to be categorized as ‘T’ in the Item Category relationship. Building the relationship
is must for running the report.

Page 60