Oracle E-Business Suite Release 12: Swachh Bharat Cess effective from
November 15, 2015 (Doc ID 2077765.1)
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APPLIES TO:
Oracle Financials for
Asia/Pacific
Oracle Financials for India Information in this document applies to any platform.
Purpose:
The objective of this
note is to advise customers about the availability of a patch to support
configuration of Swachh Bharat Cess.
Central Board of
Excise and Customs through Notification No. 21 and 22 dated November 6, 2015
announced that Swachh Bharat Cess @0.5% will be introduced with effect from
November 15, 2015. The new Cess would be applicable for all services that are
subject to levy of Service tax. The taxable basis for computation of Swachh
Bharat Cess will be on the value of Taxable Services that is currently
applicable for computation of Service tax.
Central Board of
Excise and Customs had not made any announcement on the admissibility of
input tax credit on Swachh Bharat Cess. In the absence of any specified
notifications amending the Cenvat credit Rules, it is interpreted that Swachh
Bharat Cess is not a recoverable tax and no Cenvat Credit is permitted.
All open orders for
Taxable Services need to be modified to incorporate the impact of Swachh
Bharat Cess.
Applicable to:
Oracle E-Business Suite Release 12.2.3 and 12.1.3
Solution:
The patch will enable our customers to configure Swachh Bharat Cess. The patch will pre-seed a new look up code for Swachh Bharat Cess under the Asia-Pacific look up against the look up type JAI_TAX_TYPE.
Customers are required
to configure Swachh Bharat Cess by defining required tax codes, mapping them
to the newly added tax type (Swachh Bharat Cess) and then reconfigure the
regime attributes for Service Tax regime.
Implementation:
The guidelines below will help customers in configuring Swachh Bharat Cess. • Define New Tax Codes and define the tax attributes for Swachh Bharat Cess, picking Swachh Bharat Cess as the tax type. Based on your business requirements, ensure that the tax rates and attributes are correctly defined • Configure Swachh Bharat Cess in the relevant regime registration details, assign account values for different tax accounts under Swachh Bharat Cess and map it to the relevant organizations.Ensure that that your configuration for Swachh Bharat Cess is consistent to your Service Tax configuration • Create required new tax categories with permutation and combination of tax codes which are required for computing taxes applicable under the Service Tax regime. Ensure that combinations of applicable Service Tax and Swachh Bharat Cess are appropriately configured ensuring that Service tax and Swachh Bharat Cess will be computed on the same taxable basis. • Apply new tax categories, which will have Service Tax and Swachh Bharat Cess computed, to the tax defaulting rules
All open orders for
taxable services as on 15th November 2015 that are subject to service tax
need to be amended to incorporate the applicability of Swachh Bharat Cess.
Organizations will have to re-configure their tax defaulting logic for
taxable services incorporating Swachh Bharat Cess and ensure that Swachh
Bharat Cess is applied for taxable transactions that are subject to levy of
service tax.
The following
guidelines may be used to configure the tax rate changes. Organizations will
have to re-configure their tax defaulting logic incorporating Swachh Bharat
Cess.
• India Mass Tax Recalculation: Organizations need to define a new tax category with the grouping of tax codes with applicable tax rates for Service Tax and Swachh Bharat cess, and then submit the India Mass Tax Recalculation program by selecting the old tax category and the new tax category which will update open documents. This also provides an option of overriding manually added taxes.
Customers are advised
to apply the patch in their test instance and carry out the required test
cycles before moving to Production.
Download Details:
Following patches are
released and are available for download from My Oracle Support.
22177605:R12.JAI.B
-12.1.3
22177605:R12.JAI.C -12.2.3 |
