How to do the E Business Tax setups ?

How to do the E-Business Tax Setup

Step 1: Define "Party Tax Profiles"

Search for Operating Unit using the "Party Tax Profiles" page.

Navigation : Tax Manager – Parties – Party Tax Profiles – Parties Tab

Click on "Update Party Tax Profile" button.

The following Flag should not be checked.

Important: Please note that "Use subscription of the Legal Entity" check

box must not be checked.

You will not be able to use India Localization if this flag is checked.

Step 2: Define Regime

Navigation : Tax Manager – Parties – Party Tax Profiles – Tax Configuration Tab

Following regime should be defined with exact values as shown below:

Following data should be entered while defining the tax regime:

Tax Regime CodeIN-SALES_TAX

NameIN-SALES_TAX

Regime Level: Country

Country Name : India

Effective Date : current date

Set "Configuration Options" as follows:

You need to set value for "Configuration for Taxes and Rules" as "Common

Configuration with Party Overrides"

This setup needs to be carried out for once at the Legal Entity level and also for EACH

Operating Unit in which you wish to use Oracle Financials for India. 

Step 3: Create Tax

Navigation: Tax Manager – Parties – Party Tax Profiles – Tax Configuration Tab

Create a Tax with following values:

Tax Regime CodeIN-SALES_TAX

Configuration OwnerGlobal Configuration Owner and Operating Unit *

Tax SourceCreate a new tax

TaxLOCALIZATION

Tax NameLOCALIZATION

Effective Fromcurrent date

Tax CurrencyINR

Rounding RuleDown

Applied Amount HandlingRecalculated

* This setup needs to be carried out for once at the Legal Entity level and also for EACH

Operating Unit in which you wish to use Oracle Financials for India.

Please enter values for "Tax Recovery Controls" as follows:

Allow Tax Recovery check box should be checked and "Primary Recovery Type" should

be PREC1. 
 

Step 4: Create Tax Status

Navigation : Tax Manager – Parties – Party Tax Profiles – Tax Configuration Tab

Create Tax Status with following values:

Tax Status CodeSTANDARD

NameLOCALIZATION

Effective From current date

This setup needs to be carried out for once at the Legal Entity level and also for EACH Operating Unit in which you wish to use Oracle Financials for India. 

Review your work in the Regime to Rate flow

Step 5: Create Tax Rate

Navigation : Tax Manager – Parties – Party Tax Profiles – Tax Configuration Tab

Create Tax Rate with following values:

Tax Rate Code LOCRATE

Rate Type Percentage

Percentage Rate 0

Effective From current date

This setup needs to be carried out for once at the Legal Entity level and also for EACH

Operating Unit in which you wish to use Oracle Financials for India (for the purpose of

creating tax rate at Operating Unit level you can use the 'copy' feature). 

Step 6: Update Tax Configuration Options

Navigation : Tax Manager – Parties – Party Tax Profiles – Tax Configuration Tab

Review Configuration Owner Tax Options, ensure they are as following:

Navigation : Tax Manager – Parties – Party Tax Profiles – Defaults and Controls Tab
Review Configuration Owner Tax Options, ensure they are as following:
Navigation : Tax Manager – Parties – Party Tax Profiles – Defaults and Controls Tab
Select All Application and Event class