Taxation - India Localization
Taxation - India Localization
New Implementation / Rollout
Applexus offer a wide range of tax localization services for SAP. Under this offering, we implement India localization Taxation features of SAP. This includes configuration of with Holding Tax, Procurement and Sale process as per Indian taxation rules and regulations, including service tax, Sub-contracting process and Intercompany stock transfer process. This broadly cover process and transactions such as Procurement of materials and services, Sale of finished and Semi-finished goods, Sale of raw-materials:- by-products / scrap, Stock transfer between two plants / warehouses, Account Payable and Accounts Receivable for services and Fixed Assets Income Tax block depreciation, which involves SAP-CIN version.
Finance / Account payable
- Extended withholding tax (TDS) - Except Payroll TDS
- Deduct WHT from domestic Vendor Invoice
- Deduct WHT from Down-payment to domestic Vendors
- Deduct WHT from payment to domestic Vendors
- WHT remittance to government.
- WHT Certificate generation in the prescribed format
- E-Return file for quarterly returns
- Chart of Accounts mapping for India specific tax postings
- Fixed Assets block for India Income Tax calculation
- India Income Tax depreciation calculation
- Domestic Purchases with duties and taxes
- Import purchases with custom duties & applicable other duties.
- Capital goods purchase with or without duties.
- Subcontracting process.
- Intercompany stock transfer.
- Intra company Stock transfer.
- Service tax for procurement of services.
- Procurement process in Depot plant
Sales and Distribution
- Sales in Domestic Tariff Area.
- Free goods issue with duty
- Export Sales and duty foregone
- Service tax on Goods transport.
- Sales process in depot plant
- Re-export of imported goods for repairs
- Return delivery
Tax INJ to INN migration
This is basically change in the tax calculation methodology in SAP and this is one of the important prerequisites for implementing SAP GST pack, expected to release once GST is in force in India. Under Tax INJ procedure in SAP, user needs to maintain individual tax codes for each tax rate, whereas in Tax INN, tax codes do not play a vital role in rate determination and logistics entities such as plant, material, chapter id, vendor, customer, regions and so on are used for tax rate derivation. In SAP Country India Version (CIN), the initial stages are using formula-based tax procedure named 'TAXINJ' which was the initial tax procedure released for India. In TAXINJ, tax codes are used to derive tax rates. Due to multiple Excise duty, Service tax, VAT and CST rates and many variations/exemptions in central/state taxes, TAXINJ customers need to use many tax codes in MM and SD, and customers are running out of tax codes as they have reached the maximum limit of tax codes (2 digits possible). Many tax codes create problems for users, as they need to keep track of several tax codes at master data level as well as transaction level. Our offering, Tax procedure migration, helps the customers to easily migrate from Tax INJ to Tax INN.
There are three Stages involved in this Migration Process; (a) Pre-Migration Activities, (b) TAXINJ to TAXINN Migration and (c) Open data management after Migration. Tax procedure migration covers CIN-relevant MM and SD processes in SAP which have taxes and tax code implications. This solution propose a feasible migration from TAXINJ to TAXINN. The proposed solution will have an impact on processes such as procurement, sales, job work, stock transfers, returns, excise duty posting transactions, in logistics and financials for goods and services. Non-taxable scenarios would continue without any impact in TAXINN set up also.