Oracle Financials for India (OFI)

TCS Data Model Deep dive

Author: Subbu Nemani

Creation Date: 05-Apr-2016
Document Ref:
Version: 1.0

Organization: Oracle India Private Limited.

Document Control

Change Record
5
5

Date Author Versi Change Reference

on
20-Apr- Subbu Nemani 1A
2016
Contents

Oracle Financials for India (OFI) ............................................................................................. 1

TCS Data Model Deep dive ...................................................................................................... 1

Document Control .................................................................................................................................. 2

Objective .................................................................................................................................... 5

Scope ........................................................................................................................................ 5

What is TCS? ............................................................................................................................ 7

Setups ....................................................................................................................................... 7

Defining Tax Collected At Regime..................................................................................................... 10

Assign Organization/Locations........................................................................................................... 14

TCS Item Classification ....................................................................................................................... 17

Item / Template Attribute Registration Form: ................................................................................... 20

Transactions (Tax Collected At Source) ................................................................................27

Create Sales order with TCS taxes: .................................................................................................. 27

O2C Transactions ...................................................................................................................27

Sales Order India Localization form .................................................................................................. 28

Shipment Confirmation (Localized) ................................................................................................... 32

Transactions (Localized) ..................................................................................................................... 33

India - Local Concurrent For Processing Order Lines to AR: ........................................................ 34

Settlement ...............................................................................................................................38

Period End Tax Collected at Source ......................................................................................38

Run India – TCS Settlement Report .................................................................................................. 38

Settlement ............................................................................................................................................. 41

TCS process Payment ....................................................................................................................... 44

TCS Accounting ......................................................................................................................46

TCS Reports Available............................................................................................................49

2016 Budget Amendment for TCS .........................................................................................54

Objective

The main objective of this document is to provide a deepdive of the data model compilation for
the Tax Collected at Source (TCS) regime of Oracle Financials for India (OFI)

This exclusive data model deliverable will help the users to understand in detail, the total TCS
functionality architecture so that they can also make use of these details for building any custom
solution, if required.

Scope

The OFI TCS functionality can be classified into following four major categories:

 Configuration

 Transaction flow

 Settlement

 Accounting

 Reporting

Under each of these 4 major functional areas, this data model deliverable comprises of the data
flow details, flow charts wherever applicable, the details of the triggering points, if any, important
column references and the details of the frequently encountered issues and troubleshooting
tips.
What is TCS?

It Stands for Tax Collected At Source. As per income tax rules, there are few items subjected to
TCS. Tax Collected at source arises as part of the seller. Here, tax is collected at the source of income
itself. It is to be collected at source from Buyer by the seller at the point of sale. A person collecting tax
shall furnish a certificate specifying the rate of tax applied on it and other particulars.

Example of few goods where TCS is applied

i. Alcoholic liquor for human consumption

ii. Tendu leaves
iii. Timber obtained under a Forest lease
iv. Scrap
v. Minerals being Coal or Lignite or Iron ore

TCS is also applicable on Advance Receipt, which is receipt against goods.

Setups
Flowchart:

To start with, this document facilitates with a flowchart which will allow the users to get an outline of
the setup flow for Tax Collected at Source Regime. Some of the steps outlined in this flowchart are
required and some are Optional. Required step with Defaults means that the setup functionality
comes with pre–seeded, default values in the application. However, to ensure a successful setup,
you need to review those defaults and decide whether to change them to suit your business needs.
If you need to change the default values, you should perform the corresponding setup step. You
need to perform Optional steps only if you plan to use the related feature.
 Define TCS Regime Define Assign Tax Assign Tax Accounts
(R) Registration Types (R) (R)
Details (R)
Define
Assign Organization Tax Assign
Organization
Accounts (O) Organization/Locations (R)
Registration (O)

Define Item Define TCS Tax Define Tax Codes (R)

Classification (R) Authority (R)

Define Thresholds (R) Define Item Define Tax Categories (O)

Categories (R)

Attach Receipt Define Transaction

Define Customer Registrations (R)
Class (R) Source (R)

Define Receipt Define Transaction

Class (R) Type (R)
Module wise Setups:

Oracle India Local Receivables

Step No Required Step Title

Step 1 Required Define TCS Regime

Step 2 Required Define Regime Registration Details
Step 3 Required Assign Tax Types
Step 4 Required Assign Tax Accounts
Step 5 Required Assign Organization/Locations
Step 6 Optional Define Organization registrations
Step 7 Optional Assign Organization Tax Accounts
Step 8 Required Define Item Classifications

Oracle India Payables

Step 9 Required Define TCS Tax Authority

Oracle India Receivables

Step 10 Required Define Tax Codes

Step 11 Required Define Tax Categories
Step 12 Optional Define Item Categories
Step 13 Required Define Threshold
Step 14 Required Define Customer Registrations
Step 15 Required Define Receipt class
Step 16 Required Define Transaction Type
Step 17 Required Define Transaction Source
Step 18 Required Attach Receipt Class
Defining Tax Collected At Source Regime

Navigation:

India Localization  Setup  India TCS/VAT/Service Tax  Setup  Regime RegistrationRegistrations

Objects involved/Affected:

Form Name: JAINRGIM.fmb

Tables: JAI_RGM_REGISTRATIONS, JAI_RGM_DEFINITIONS

Primary Key: JAI_RGM_DEFINITIONS.REGIME_ID

Defining TCS Regime:

Form Fields:

Header Section: In this section regime name, description and effective dates of the regime is captured

Below are the fields to be entered.

Regime Header Details Description

1. Regime Tax Collected At Source
2. Description Enter a description

Under the Regime Registration Details

Field Description
1. Sequence Enter a sequence
2. Registration Type It’s an LOV containing below
Primary Registration Number
Secondary Registration Number
Others
3. Registration Name TAN No
AR Receipt Class
Batch Source Credit Memo
Batch Source Debit Memo
TCS Financial Year

Primary Registration Number Value is fetched from Lookup “ JAI_RGM_REGN_ATT_TYPE “ , which is System
Controlled.

Screen shot:-

 Data in table JAI_RGM_DEFINITIONS:

Regime_ID Regime Code Description

Tax Collected at Source
10020 TCS – India
 Data in table JAI_RGM_REGISTRATIONS:

REGISTRATIO REGISTRATION_ ATTRIBUTE_TYPE_ ATTRIBUTE_C ATTRIBUTE_VA REGIME

N_ID TYPE CODE ODE LUE _ID
10000 OTHERS PRIMARY ORG_TAN_ NO BLRO00194F 10020

Tax Types tab: This section of the screen shows the Tax Types associated to the regime and the 4 accounts
related to this regime.
In this we will add the respective Tax Type which will be assigned to the TCS regime. This is a
logical grouping of all transactions to which these taxes are applicable. If the values assigned for
a particular tax are different, these would prevail over those defined for the regime.

Navigation:

India Localization  Setup  India TCS/VAT/Service Tax  Setup  Regime RegistrationTax Types:
Below are the details of “Tax Types “ Tab.

Field Details
1. Sequence Sequence Numbering
2. Tax Types TCS Cess
TCS SH Education Cess
TCS Surcharge

 Data in table JAI_RGM_REGISTRATIONS:

REGISTRATIO REGISTRATION_ ATTRIBUTE_TYPE_ ATTRIBUTE_C ATTRIBUTE_VA REGIME

N_ID TYPE CODE ODE LUE _ID
Tax Collected At Tax Collected at
10000 TAX_TYPES NULL Source Source 10020

Tax Accounts Details block: Accounts that are going to be used for accounting of Tax Collected At Source are
specified here.

Below are the details

Field Details
1. Sequence Sequence Numbering
2. Tax Types Enter the respective Tax Types
Interim Liability Account
Liability Account
 Data in table JAI_RGM_REGISTRATIONS:

REGISTRATIO REGISTRATION_ ATTRIBUTE_TYPE_ ATTRIBUTE_C ATTRIBUTE_VA REGIME

N_ID TYPE CODE ODE LUE _ID
INTERIM_LIABI
10022 ACCOUNTS NULL LITY 285916 10003

Assign Organization/Locations
Regime has to be assigned to all Organizations to which it is applicable. Taxes defined under this Regime would
default only for these Organizations.

Navigation:
India Localization  Setup  India TCS/VAT/Service Tax  Setup  Regime RegistrationOrganization (Push
Button)

Objects involved/Affected:
Form Name: JAINRGPT.fmb

Tables: JAI_RGM_REGISTRATIONS, JAI_RGM_DEFINITIONS, JAI_RGM_PARTIES

Primary Key: JAI_RGM_DEFINITIONS.REGIME_ID

Regime:

Organization Details block: All the organizations falling under this regime are associated to the regime here.

Field Description
1. Organization Type Select the Organization Type. Note : In this Only
Inventory Organizations will be fetched.
2. Organization Name System will fetch all te IO’s belonging to the relevant
SOB and select the appropriate one.
3. Location Select the Location associated to the Organization

 Data in table JAI_RGM_PARTIES:

Regime_Org_ID REGIME_ID ORGANIZATION_TYPE ORGANIZATION_ID LOCATION_ID

10000 10003 IO 7087 22885

Registrations tab: This section captures the registration details of the regime.

Registration Details block: The registration details that are given at the regime registration details are defaulted
to the organizations. These registration details will default on all the organizations that are
assigned to this regime. The user has the facility to change the default values at an organization
level. You cannot delete a registration here.

Navigation:
India Localization  Setup  India TCS/VAT/Service Tax  Setup  Regime RegistrationOrganization (Push
Button) Tax Types:
 Tax Details block: The tax details that are given at the regime registration details are defaulted to the
organizations. These tax details will default on all the organizations that are assigned to this
regime. The user has the facility to change the default values at an organization level.

Field Description
1. Tax Type Enter the Tax relating to TCS regime
2. Description --

Under Account Details

Field Description
1. Account Name Enter the relevant CCID

 Data in table JAI_RGM_REGISTRATIONS:

REGISTRATIO REGISTRATION_ ATTRIBUTE_TYPE_ ATTRIBUTE_C ATTRIBUTE_VA REGIME

N_ID TYPE CODE ODE LUE _ID
Tax Collected At
10032 TAX_TYPES NULL Source TCS 10020

Tax Accounts Details block: Accounts that are going to be used for accounting of Tax Collected At sources are
specified here.
. Default (checkbox): This checkbox will be checked whenever default account value at the regime level are
retained. It gets unchecked when registration value is modified.

 Data in table JAI_RGM_REGISTRATIONS:

REGISTRATIO REGISTRATION_ ATTRIBUTE_TYPE_ ATTRIBUTE_C ATTRIBUTE_VA REGIME

N_ID TYPE CODE ODE LUE _ID
INTERIM_LIABI
10022 ACCOUNTS NULL LITY 285916 10003

TCS Item Classification

Navigation:
India Local Inventory  Setup  Item Setup  Setup  VAT/EXCISE Item Classification

Objects involved/Affected:
Form Name: JAINITCL.fmb

Tables: JAI_RGM_ITM_TMPL_ATTRS, JAI_RGM_TMPL_ITM_REGNS, JAI_RGM_ITM_TEMPLATES,

JAI_RGM_TMPL_ORG_REGNS

TCS Item Attribute Definition Process: Users can define an Item Template wherein he defines a Template
name along with combination of the Tax regime, the Applicability, Item class and other common attributes. This
defined template can then be attached to multiple items thereby reducing the need to go to individual item and
defining the same attributes again and again. Users will also have the flexibility to assign the same template to
various organizations for that item.
Flowchart:

Is there any Noany item

Is there
Create a New Item Assign the item to item Template Template
in Base application an inventory Org existing for the existing for the
org? master org?

Yes Yes

Use the existing item

Template

Define a new Template

No

Assign template to item

Assigning Item Attributes

Navigation: India Local Purchasing India TCS/VAT Service Tax Setup Item Classification

This will navigate you to the Find Item / Template / Assignment screen. With this find window you can find:

1. Item Attributes for a single Item

2. Attribute Template for a single template
3. Template Assignments currently made
Find Item Attribute

Form Fields:

1. Item / Template: You will choose this to find the Item attributes of a single item
2. Regime: You will have to pick the Regime here. Currently only Value Added Tax is available here.

LOV Name LOV Query

Regime SELECT jrd.description regime, jrd.regime_code
regime_code FROM JAI_RGM_DEFINITIONS jrd,
JAI_RGM_LOOKUPS jrl WHERE jrd.regime_code =
jrl.regime_code group by jrd.regime_code,
jrd.description

3. Organization: You will have to choose the organization here.

Lov Name LOV Query

Organization SELECT HOU.NAME NAME, HOU.ORGANIZATION_ID ORGANIZATION_ID
FROM
HR_ALL_ORGANIZATION_UNITS HOU,
HR_ORGANIZATION_INFORMATION HOI1,
HR_ORGANIZATION_INFORMATION HOI2,
MTL_PARAMETERS MP
WHERE
HOU.ORGANIZATION_ID = HOI1.ORGANIZATION_ID
AND HOU.ORGANIZATION_ID = HOI2.ORGANIZATION_ID
AND HOI1.ORG_INFORMATION1 = 'INV'
AND HOI1.ORG_INFORMATION2 = 'Y'
AND ( HOI1.ORG_INFORMATION_CONTEXT || '') = 'CLASS'
AND ( HOI2.ORG_INFORMATION_CONTEXT || '') ='Accounting Information'
AND HOU.ORGANIZATION_ID = MP.ORGANIZATION_ID
AND DECODE(:PARAMETER.MULTI_ORG_FLAG, 'Y',
DECODE(HOI2.ORG_INFORMATION_CONTEXT, 'Accounting
Information',TO_NUMBER(HOI2.ORG_INFORMATION3),TO_NUMBER(NULL)),
TO_NUMBER(NULL)) = :JAIITMCL_QF.ORG_ID
ORDER BY hou.name asc
4. Item Name: You will have to choose the item for which you want to view the Item Attributes

LOV Name LOV Query

Template Item Name SELECT DISTINCT
MSIT.CONCATENATED_SEGMENTS,
RGIA.INVENTORY_ITEM_ID,
NVL(RGIA.TEMPLATE_ID, 0) TEMPLATE_ID
FROM MTL_SYSTEM_ITEMS_KFV MSIT,
JAI_RGM_ITEM_ATTRIB_V RGIA WHERE
MSIT.INVENTORY_ITEM_ID =
RGIA.INVENTORY_ITEM_ID AND
MSIT.ORGANIZATION_ID =
RGIA.ORGANIZATION_ID AND
MSIT.INVENTORY_ITEM_STATUS_CODE <> 'Inactive'
AND RGIA.ORGANIZATION_ID =
:CTRLBLK.ORGANIZATION_ID AND
RGIA.REGIME_CODE =
:CTRLBLK.REGIME_CODE

5. New/Find (Push Button): You can find an existing item for which these attributes are setup by clicking the
“Find” button. If you want to give attributes to a single item then you can use the “New” button to navigate to
Item / Template Attribute Registration Form.
 Non Database Item

Item / Template Attribute Registration Form:

Header Section: In this section regime name, description and effective dates of the regime is captured

1. Regime: You will have to pick the Regime here.

 2. Details about Attribute Registration:-

a. Attribute Name

This contains the details on the entered attribute name.

Ex: Item_Classification

b. Attribute Value

Field Name LOV Query

Attribute Value SELECT ATTRIBUTE_VALUE,
DISPLAY_VALUE
FROM JAI_RGM_LOOKUPS
WHERE REGIME_CODE =
:CTRLBLK.REGIME_CODE AND
ATTRIBUTE_CODE =
:ITMTMPATT.ATTRIBUTE_CODE
AND ATTRIBUTE_VALUE IS NOT NULL

Below is the list of values in the LOV for Attribute Value

Defining India TCS Authority

Navigation : Oracle Payables – Suppliers – Entry

This opens the Base Supplier definition screen where we are supposed to define a supplier.
Purpose of creation as a supplier is the taxes which are collected from customers, at the end of the day are supposed
to paid to the respective authority.

For this, we define a supplier for TCS Authority for the respective payment.
Ensure that In the field “ Type “ , we select the value in LOV as “India TCS Authority”.

Else , this supplier will NOT be available in the LOV of the TCS Settlement form.

So ,if observed that any of the supplier defined is not appearing in the TCS settlement , first need to check if the
“Type” column is populated in the Supplier Additional information page for the problematic supplier under the
“Organization” link.

Defining Customer Additional Information Details and Setup

Navigation: India Local resp – Customers – Additional Information.

Do note that when defined a customer , inclusion of PAN No and TCS Customer Type is mandatory.
These Customer Records are stored in “JAI_CMN_CUS_ADDRESSES “table.
Columns which store the records in JAI_CMN_CUS_ADDRESSES table are :
a. PAN_NO
b. TCS_CUSTOMER_TYPE

Defining Tax Codes

Navigation : India Local responsibility - Setup – Tax – Taxes

Using this form, define tax for Type “ Tax Collected At Source , TCS Cess, TCS Surcharge

Note: You need to define a different Tax Code each for TCS Cess and TCS Surcharge Cess. .TCS Cess should not
be used for TCS Surcharge Cess even though the Tax percentage is the same. This is essential
because a single transaction cannot have the same tax ID multiple times.
Table Name : JAI_CMN_TAXES_ALL

Defining Tax Categories

Navigation : India Local Responsibility – Setup – Tax – Tax Categories

Table name: JAI_CMN_TAX_CTGS_ALL

Define Threshold
Navigation: India Local Receivables - Setup – Tax – Threshold Setup

Using this form , the system automatically tracks cumulative sales above a limit ( where it is 10 Lakhs) and starts
adding Surcharge for sales when such threshold is crossed.
Table Name Description
JAI_AP_TDS_THHOLD_TYPES Details about Threshold Types
JAI_AP_TDS_THHOLD_SLABS Details about threshold Amount Slabs
JAI_AP_TDS_THHOLD_TAXES Taxes where assignment of threshold for the respective
OU are stored.

Defining Customer Registrations

Tax Identification or Permanent Account numbers (PAN number) will be allotted to

eligible organizations.

Navigation: India Local Receivables – Customers – Additional Information

Customer details are stored in JAI_CMN_CUS_ADDRESSES .

Defining Receipt Class

This is defined via the base Receivables responsibility. The purpose of this creation is Advance Receipt for TCS
receipt class or payment method is used for TCS Advance Receipts only and not for generic receipts that do not
attract TCS Tax Type.

Navigation: Oracle Receivables – Setup – Receipts – Receipt Classes

Stored in table AR_RECEIPT_CLASSES.

This is attached at the Regime Registration Level.

Defining Transaction Sources
Recommended to create and use a separate TCS Credit Debit notes to ensure that the same is not used with other
transactions thereby can be tracked easily.

Transactions (Tax Collected At Source)

Create Sales order with TCS taxes:

i. Objects involved/Affected:

i. Sales order / Returns Localized form – JAINEORD.fmb

ii. DB Sources involved:

Table Trigger Packages

OE_ORDER_LINES_ALL JAI_OE_OLA_ARIUD_T1 JAI_OM_TAX_PROCESSING_PKG

jai_oe_ola_trigger_pkg

OE_ORDER_LINES_ALL JAI_OE_OLA_BRIUD_T1 JAI_OM_TAX_PROCESSING_PKG

WSH_DELIVERY_DETAILS JAI_OM_WDD_ARIUD_T1 JAI_OM_WDD_PROCESSING_PKG

JAI_OM_WDD_TRIGGER_PKG

O2C Transactions

Flowchart:
To start with, this document facilitates with a flowchart which will allow the users to get an
outline of the basic O2C cycle flow for Value Added tax Regime. Some of the steps outlined in this
 flowchart are required and some are Optional. Required step with Defaults means that the setup
functionality comes with pre–seeded, default values in the application. However, to ensure a
successful setup, you need to review those defaults and decide whether to change them to suit
your business needs. If you need to change the default values, you should perform the
corresponding step. You need to perform Optional steps only if you plan to use the related feature.

Sales Order India Open Base SO Sales Order Attaching TCS taxes to
Localization form Creation the SO in the localized
form
form

Interface Trip Stop Shipment of Launch Pick Book the Sales

(RA_INTERFACE_LINES_ALL) Sales Order Release Order

Workflow
Background
Fulfilled Orders Form process, Auto India - Local Concurrent Check in base AR
.Check for tax invoice Master for Processing Order invoice form if the
population ,Import Program Lines to AR taxes have flown to AR
invoice distribution

Create
Accounting

Sales Order India Localization form

Enter the Sales order with the relevant information and click on the Taxes button in the India Local – Orders localized
form.

Navigation:

India Local Order Management Orders , Returns Orders/returns (Localized)

Objects involved/Affected:

Form Name: JAINEORD.fmb

Tables: JAI_OM_OE_SO_LINES, OE_ORDER_HEADERS_V, JAI_OM_OE_SO_TAXES

Primary Key: JAI_OM_OE_SO_LINES.HEADER_ID

JAI_OM_OE_SO_LINES.LINE_ID

DB Sources involved:

Table Trigger Packages

OE_ORDER_LINES_ALL JAI_OE_OLA_ARIUD_T1 JAI_OM_TAX_PROCESSING_PKG

jai_oe_ola_trigger_pkg

OE_ORDER_LINES_ALL JAI_OE_OLA_BRIUD_T1 JAI_OM_TAX_PROCESSING_PKG

WSH_DELIVERY_DETAILS JAI_OM_WDD_ARIUD_T1 JAI_OM_WDD_PROCESSING_PKG

JAI_OM_WDD_TRIGGER_PKG
Sequence of Events:

 For creating sales order in India localization user need to navigate from Sales order localization form, on
giving click on open we will navigate to the base SO form.

 The Sales Oder is created in the Base SO form

 As soon as a record is inserted into the base table OE_ORDER_LINES_ALL, a database trigger
(JAI_OE_OLA_BRIUD_T1) is called.

o This trigger is BEFORE INSERT OR UPDATE OR DELETE Trigger FOR EACH ROW

o For INSERT and UPDATE, this trigger will call the procedure
JAI_OM_TAX_PROCESSING_PKG.DEFAULT_TAX , which will check if the SO line is ATO or
not.

 Trigger JAI_OE_OLA_ARIUD_T1 is invoked which is an AFTER INSERT OR UPDATE OR DELETE ON

OE_ORDER_LINES_ALL trigger

o For INSERT, this trigger will call the procedure:

JAI_OM_TAX_PROCESSING_PKG.POPULATE_TAX.

o This procedure will in turn call the procedure:

JAI_OM_TAX_PROCESSING_PKG.CREATE_NORMAL_ORDER which will insert record into the
table JAI_OM_OE_SO_LINES

o For UPDATE, this trigger will call the procedures:

JAI_OM_TAX_PROCESSING_PKG.UPDATE_TAX: will update the table
jai_om_oe_so_lines

jai_oe_ola_trigger_pkg.ariu_t2: Populate JAI tables JAI_RGM_INVOICE_GEN_T,

JAI_OM_WSH_LINES_ALL and JAI_OM_WSH_LINE_TAXES for fulfilled non-shippable
items.

o For DELETE, this trigger will call the procedure:

jai_oe_ola_trigger_pkg.ard_t1: will delete the lines from the table jai_om_oe_so_lines and
JAI_OM_OE_SO_TAXES

 Assigning IL taxes to the Sales Order. This can be achieved by below ways:

a. Based on the Tax category

b. Attaching TCS taxes in the Tax Details screen
c. Tax category assigned to the Item Category List against the item

Tax Details India Localization - Sales Order

Tax Details India Localization screen displays taxes for the current line in the Sales Order- Localized screen.
All the taxes related to that Sales Order line could be viewed by clicking the taxes button. You can view the
taxes defaulted for the item and have an option to update/add/delete the taxes defaulted. If you make some
changes in the defaulted taxes, you need to click the apply button to make the tax modifications effective.
After applying the tax modifications, you need to save the record.
 You can check the tax name, tax type tax rates, Unit of measurement, precedence logic for
calculation of taxes and the taxes calculated for each line item. No precedence logic and tax rates will be
available for an adhoc type of tax.

 Book the Sales Order.

 For Complete Flow of the Sales order Booking and Ship Confirm , kindly refer the below attachment

After Pick
Release.doc

 In the object JAI_OM_WDD_PROCESSING_PKG, it checks using cursor C_CHK_RGM_TAX_EXISTS ,

if tax types defined in regime setup exists as per the regime code . Below are the tables and respective
conditions:-
JAI_REGIME_TAX_TYPES_V JRTTV,JAI_OM_WSH_LINES_TAXES JSPT , JAI_CMN_TAXES_ALL
JTC WHERE JTC.TAX_ID=JSPT.TAX_ID , JCT.TAX_TYPE=JRTT.TAX_TYPE , REGIME_CODE
=”TCS”, JSPT.DELIVERY_DETAIL_ID = ID FETCHED FROM THE CONCURRENT PROGRAM
PARAMTER. This cursor is assigned to cursor type ln_tcs_exists.
 If the value in variable ln_tcs_exists is > 0. Then further validations take place. Else it throws an error
message “'Error in jai_rgm_thhold_proc_pkg.default_thhold_taxes. “ under exception code “-20275”.
 If value exists , then first checks if the regime id matches with that of TCS regime registration setup.
 Calls the Package jai_rgm_thhold_proc_pkg.get_threshold_slab_id where this is used to fetch the
threshold_slab_id for the given combination of fin_year ,org_tan_no,party_type, party_id defined in the
threshold setup.
 If any of these are not defined or value not fetched, it throws error “Error in
jai_rgm_thhold_proc_pkg.get_threshold_slab_id.”.

 Will be checking for item setup using cursor get_item_dtls where if excise flag is set as Y, records are
inserted into temporary table containing release date, delivery detail id etc.
 Coming to the respective accounting for TCS transactions , object
“jai_ar_tcs_rep_pkg.wsh_interim_accounting” is called in.
 In this procedure “wsh_interim_accounting “ , jai_cmn_rgm_recording_pkg.get_account is used to get the
code combination id from the organization , registration setup done for the TCS regime.
 Liability and interim liability account are assigned to variables as v_liab_acc_ccid, v_int_liab_acc_ccid.

 In the high level , during booking the order , if the accounting are not defined at the regime registration
level for TCS. And it throws error “Invalid Code combination ,please check the TCS Tax - Tax Accounting
Setup”.
 Coming to the TCS Accounting , the entries will be as below for interim accounting

For the complete flow to GL INTERFACE , please refer the below document :-

Entry flow to GL.doc

  During Shipment ,For TCS Liability Account , entries are Credit Tax amount
Debit 0
For Interim Liability Account , Credit 0
Debit Tax amount
 So , final Entry at time of shipment is

Account Debit Credit

TCS Interim Liability A/c TCS Tax Amount ---

TCS Liability A/c -- Tax Tax Amount

 Package JAI_OM_WDD_PROCESSING_PKG.ISO_OTHER_ACCOUNTING validation exists to check if

the sales order entered is an ISO order or not . If yes , then ISO_OTHER_ACCOUNTING will be invoked.
 Once the Records are interfaced to AR , ( post completion of autoinvoice master , import program)
procedure JAI_TAX_PROCESSING_PKG is called in.

Shipment Confirmation (Localized)

This screen is provided to view the tax related information of the delivery on confirming the shipment.
You can enter any one of the following fields, such as Departure Name, Customer, Order Number, Batch Name, Ship
date, Delivery Name, Warehouse, Order type, Waybill to help in specific query of records.
Before dispatching the goods, the sales order needs to be released and the shipping need to be
confirmed through the standard application. Please note that the localization taxes cannot be
modified once the order is released/shipped. You need to take enough care to ensure that the correct taxes are
defaulted in the sales order before releasing/confirming the shipment of the order.

Navigation:
Shipping  Confirm Shipments Ship Confirm (Localized)  Find
Objects involved/Affected:
Form Name: JAINCSHP.fmb

Tables: JAI_OM_WSH_LINE_TAXES, JAI_OM_WSH_DELIVERIES_V

Primary Key: JAI_OM_WSH_LINE_TAXES.ORDER_LINE_ID

Transactions (Localized)

Transactions with localized taxes can be created in the receivables module. The taxes will get
calculated for the item based on the tax defaulting set ups or taxes can be added to the transactions
manually.
Transactions in AR can be created through the Auto invoicing where the transactions done in
Order Management module will get interfaced to the receivables module. The taxes from the Order
Management module will be interfaced to AR while running the auto invoice program .

Navigation:
Transactions  Transactions (Localized)

Objects involved/Affected:

Form Name: JAINARTX.fmb

Tables: JAI_AR_TRXS, JAI_AR_TRX_LINES

Primary Key: JAI_AR_TRXS.CUSTOMER_TRX_ID

DB Sources involved:
Table Trigger Packages

RA_CUSTOMER_TRX_ALL JAI_AR_RCTA_ARIUD_T1 JAI_AR_RCTA_TRIGGER_PKG

JAI_AR_RCTA_ASI_T1 jai_ar_match_tax_pkg

RA_CUST_TRX_LINE_GL_DIST_ALL JAI_AR_GLDIST_BRIUD_T1 JAI_AR_GLDIST_TRIGGER_PKG

RA_CUSTOMER_TRX_LINES_ALL JAI_AR_RCTLA_ARIUD_T1 JAI_AR_RCTLA_TRIGGER_PKG

Sequence of Events:

 The Auto Invoice Import inserts records into the base table RA_CUSTOMER_TRX_ALL

 As soon as the record is inserted into the base table, AFTER INSERT trigger JAI_AR_RCTA_ASI_T1 is
fired

 This trigger will in turn, invoke the procedure: JAI_AR_RCTA_TRIGGER_PKG.ASI_T1();

 This procedure will insert IL entries into the tables JAI_AR_TRXS and JAI_AR_TRX_LINES.

 Once the AR transaction is Completed, the COMPLETE_FLAG is updated to ‘Y’ in the table
RA_CUSTOMER_TRX_ALL and as a result the trigger JAI_AR_RCTA_ARIUD_T1 (AFTER
INSERT/UPDATE/DELETE) fires

 The trigger will in turn call the procedure JAI_AR_RCTA_TRIGGER_PKG.ARU_T4();

 This procedure will insert the AR Trx TAX distribution data into the temp table JAI_AR_TRX_INS_HDRS_T
after having done the required validations.

 The Auto Invoice Import inserts records into the base table RA_CUSTOMER_TRX_LINES_ALL

 As soon as the records are inserted into the base table, an AFTER INSERT OR UPDATE OR DELETE
trigger JAI_AR_RCTLA_ARIUD_T1 is fired.

 Based on the field interface_line_context = ‘ORDER_ENTRY’ , this procedure will insert IL entries into the
tables JAI_AR_TRXS and JAI_AR_TRX_LINES.

 The procedure JAI_AR_TAX_LINES_PKG. INSERT_TAX_LINES_TEMP() is called to insert recoirds in the

temp table JAI_AR_TRX_INS_LINES_T

 Once the AR invoice is imported, TCS Interim Liability Account is knocked off , this is the entry which is
generated at the time of shipment.

India - Local Concurrent For Processing Order Lines to AR:

A concurrent program ‘India - Local concurrent for processing order lines to AR‘ has been added to Oracle
Receivables – India Localization. This has been introduced to handle localization tax flow from Order Management to
Receivables. This program captures localization taxes in Shipments and inserts Tax lines in AR Invoices and Credit
Memos imported from Order Management. You have to schedule the concurrent to submit the request at suitable
intervals. Please make it mandatory to Schedule this concurrent program.

The concurrent ‘AR Tax and Freight Defaultation’ would automatically run to Insert Tax lines in AR Invoices created manually.
  Once the AR invoice is created , and saved below are the accounting entries:
Account Debit Credit
Receivable Account TCS Taxes --

TCS Interim Liability Account -- TCS Taxes

 Now, once the AR invoice is “Completed “, on clicking “Complete “ button

Below are the accounting entries:

Account Debit Credit

TCS Interim Liability A/c TCS Taxes --
TCS Liability A/c -- TCS Taxes

 On the AR accounting , below are the values inserted into GL Interface :-

 GL_INTERFACE.REFERENCE23 , references jai_ar_tcs_rep_pkg.ar_accounting
 GL_INTERFACE.REFERENCE24 references ra_customer_trx_all
 GL_INTERFACE.REFERENCE25 references customer_trx_id
 Along with above entries, the source passed to GL Interface is “Receivables India”.
 The respective Accounts are fetched from package “jai_cmn_rgm_recording_pkg.get_account
For the combination of regime_id,organization_type_id, organization_id, location_id, tax_Type and accounts
name from jai_constants .
 If the value of interim liability account or Liability account fetched from the previous statement is null then it
would throw an error saying “Invalid Code combination ,please check the TCS Tax - Tax Accounting Setup “.
 During this course , if any error is observed, it is thrown error as below:-
“Unexpected error in the jai_ar_tcs_rep_pkg.man_ar_completion_accounting”.
 Now, for the Standalone AR Invoice , below are the expected accounting entries
Account Debit Credit
Receivable Account TCS Taxes --
TCS Interim Liability Account -- TCS Taxes

 Once the Standalone invoice is completed , below are the entries

Account Debit Credit

TCS Interim Liability Tcs Taxes --
TCS Liability -- TCS Taxes

Advance Receipt
Navigate to India Local Receivables – Receipts

 In the Receipt Method field , ensure that we select the value as “ Advance Receipt for TCS “.And need to
enter the Customer details.
 Below is the screen shot:-
Creation of AR Debit Memo For TCS – Advance Receipt Transaction Flow

During 11i, there was a feature called “ Zoom Functionality ” , which is used to enter the details namely
Organization ,Item Classification , Tax Category. But on R12 , this functionality is replaced with AR IL Cash Receipts
Menu.

Select Tools – AR IL Cash Receipts menu.

So , Zoom functionality is replaced on R12 , with AR IL Cash Receipts menu and this is also used to attaching India
Localization taxes.

In the above form , customer details , receipt number , receipt amount are stored in table :
JAI_AR_CASH_RECEIPTS_ALL.

Organization , item classification , taxes category, total tax amount are stored in JAI_AR_CASH_RECEIPTS_ALL.

Below is the screen on clicking the taxes button.

The above taxes are stored in table :JAI_CMN_DOCUMENT_TAXES .

 Click on the Taxes button and the TCS taxes are defaulted.

 Now, confirm the same , but clicking on the “Confirm “ button and then close the form. In the AR Receipts
form
 we will be clicking on the Apply Button.

 If we try to Save the details on the form without entering the taxes via Tools – AR Cash Receipt , form
throws the message “First process the taxes using Tools Menu and then save the form “.
This validation takes place in object / trigger “ jai_ar_trigger_pkg “

 In this trigger , procedure , “ARI_T1” is called for which does the validation.
 Validation criteria is r_check_tmp_data.loc_cash_receipt_id IS NULL AND
upper(nvl(lv_regime_code,'####')) = 'TCS'
 To elaborate the case , r_check_tmp_data is defined as c_check_tmp_data%Rowtype;
Which is a cursor variable.

Cursor c_check_tmp_data is defined as “CURSOR C_CHECK_TMP_DATA(PN_TEMP_SEQUENCE_ID

NUMBER)
IS
SELECT LOC_CASH_RECEIPT_ID,
RECEIPT_AMOUNT,
CUSTOMER_ID,
CONFIRM_FLAG,
CURRENCY_CODE,
EXCHANGE_RATE
FROM JAI_AR_CASH_RECEIPTS_ALL
WHERE TEMP_SEQUENCE_ID = PN_TEMP_SEQUENCE_ID
AND CASH_RECEIPT_ID IS NULL;”.
 So ,if the value of LOC_CASH_RECEIPT_ID Is null and the regime assigned is TCS , then the error
message is called in. Upon entering the TCS taxes , the error message is resolved and further allows to
save the transaction.

 On Clicking Tools – AR IL Cash Receipts , object JAINRCPT.fmb is called.

 In this form , the fields ,Customer Name, Customer Site , Customer Number, Receipt Number fields will be
defaulted from the AR Receipts screen.

 And now , we are supposed to enter the Organization details, Item classification .

 All the details for the transaction are stored in table: JAI_AR_CASH_RECEIPTS_ALL
  We can use the where condition to retrieve “cash_receipt_id = :parameter.cash_receipt_id OR
temp_sequence_id = :parameter.sid “
 TCS_Document_no is fetched from the below condition :-
SELECT a.generated_doc_trx_number
FROM jai_rgm_item_gen_docs a,
jai_rgm_refs_all b
WHERE a.transaction_id = b.transaction_id
AND b.source_document_id = cp_receipt_id
AND b.source_document_type = 'CASH_TAX_CONFIRMED';

 Once the value of a.generated_doc_trx_number for the given condition is fetched. This process happens via
the parameterized cursor “c_document_number(p_receipt_id); “.
 The fetched value is assigned to “:receipts.TCS_DOCUMENT_NUMBER;”. This above logic exists in
JAI_COMMON package body defined in the form.
 The tax computed is as below:-
 First in the jai_common package , cursor c_ total_tax_amount is defined where it is
SELECT SUM(tax_amt) tot_tax_amt
FROM jai_cmn_document_taxes
WHERE source_table_name = 'JAI_AR_CASH_RECEIPTS_ALL'
AND source_doc_id = cp_cash_receipt_id;

 Firstly it checks for the value of p_receipt_id which is nothing but the value fetched via cash_receipt_id.
 If this value is not null , then using the above cursor condition , the value of sum(tax_amt) is fetched and
displayed.

 Here it is mandatory that one should click on the Confirm Button , else the taxes will not be applied on the
Advance.

 Once the taxes are applied on the receipt and confirmed , then “Confirm” Button is greyed out.

 On clicking on the apply , we need to check for the created AR Invoice and enter the respective details.

Settlement

Period End Tax Collected at Source

Run India – TCS Settlement Report

Before carrying out the actual settlement process we need to run “India TCS Settlement Report”.
This is assigned and accessible from responsibilities “India Local Payables “ & “India- Local Receivables”.

i. Objects involved/Affected:

a. Name: India TCS Settlement Report

b. Executable : JAINSTLR

c. File name: JAINSTLR.rdf

ii. Navigation: India Localization Payables / Receivables > View - Submit Requests
India TCS Settlement Report
iii. Parameters involved :-

Seque Parameter Descript Enabl Value Set name Requi

nce ion ed red
(Y/N) (Y/N)

10 p_tan_no TAN NO Y JA_IN_TCS_ORG_T Y

AN

20 p_organization Organiza Y JA_IN_TCS_ORGAN N

_id tion Id IZATION

30 p_date Settleme Y FND_STANDARD_D Y

nt Date ATE

40 p_item_classifi Item Y JA_IN_TCS_ITEM_C Y

cation Classific LASS
ation

iv. Value Set Details

Value Set name List Securi Validat Validation Query

Typ ty ion
e Type type

JA_IN_TCS_ORG_T List No Table From

AN of security JAI_RGM_ORG_REGN
Valu S_V where regime_code
es = 'TCS' and
registration_type =
'OTHERS' and
attribute_code =
'ORG_TAN_NUM'

and (regime_org_id,
attribute_value) in(
select
min(bb.regime_org_id),
bb.attribute_value from
JAI_RGM_ORG_REGN
S_V bb where
regime_code = 'TCS'
and registration_type =
'OTHERS' and
attribute_code =
'ORG_TAN_NUM' group
by bb.attribute_value )

JA_IN_TCS_ORGANI List No Table From

ZATION of Security hr_organization_units
Valu hou where
 es organization_id IN (
select distinct
organization_id from
JAI_RGM_ORG_REGN
S_V where regime_code
= 'TCS' and
registration_type =
'OTHERS' and
attribute_code =
'ORG_TAN_NUM' and
attribute_value =

:$FLEX$.JA_IN_TCS_O
RG_TAN)

FND_STANDARD_D List Non None --

ATE of Hierarch
Valu ical
es Security

JA_IN_TCS_ITEM_C List No Table From

LASS of Security JAI_RGM_LOOKUPS
Valu where
es regime_code='TCS'

and attribute_type_code
= 'ITEM_ATTRIBUTE'

and attribute_code
=
'ITEM_CLASSIFICATIO
N'

v. Screen shots:
 vi. Report Observation

The form of the report lists under the below sections:-

Please note that TCS applicability of these receipts will be nullified if you proceed

with Settlement without confirming the taxes.

Warning : Cash Receipts where TCS is applicable and taxes have been
confirmed but it is not fully applied.

Warning: Invoices with TCS applicability which are not complete

List of Documents for Surcharge Adjustment at Threshold change

Exception: Documents generated for TCS but not yet imported

Settlement

Generation of TCS Credit memo when receipt is applied to AR Transaction with TCS Taxes.

i. Objects involved/Affected:

a. Name: Settlement (JAINRGST.fmb)

b. Navigation: India Localization > India TCS/VAT/Service Tax/FBT >

Period End > Settlement

c. Screen shot:-
ii. DB Sources involved

iii. Tables
I Packages
m
JAI_RGM_BALANCE_T
p JAI_CMN_RGM_TAX_DIST_PKG
o
JAI_RGM_STL_BALANCES
r JAI_CMN_RGM_SETTLEMENT_PK
t G
Important Validations :

a. Upon verifying the output of India – TCS Settlement report , we need to

proceed further to start the settlement process.

b. Settlement can only be entered only upto Sysdate -1.

c. Settlement cannot be carried out on the current date as there might

exists few transactions still in the system, hence this validation.

d. The TCS Authority invoice would be created only when the Payables
amount < 0 which means that the Credit value should always be less
than the Debit amount

e. The process button will be activated only when the Net balance amount
( payable amount ) is shown negative. If the credits are more than the
debits for cases where there is no payment due , “Process” button will
be disabled itself.

f. Screen shot of the Payment details entered :-

g. On clicking the process , we get the below message “ APP-JA-460238:

Processing completed successfully. View the details in the payment
screen “.

h. And simultaneously , localization version of Payables Open Interface

import is invoked automatically.
 i. Attached the log file of the Payables Open interface import for
reference:-

iv. Technical Flow/explanation

a. The TCS invoice generation process would be initiated when the user
clicks on the “PROCESS” button in the Settlement window.

b. The procedure call

“JAI_CMN_RGM_SETTLEMENT_PKG.create_invoice()” would create
the invoice against the TCS authority. The Invoice would be created
only when the Details level Payable Amount is < 0

i. The process would check if the GL period of the settlement

date is OPEN

ii. If it is not opened, the process would try to fetch the next open
period. If no open period is available, then the process would
be terminated with the Error: No Open period ... after the
Settlement Date

iii. The process would insert the AP invoice interface header

records with the source “INDIA TAX SETTLEMENT” by making
the call to “JAI_AP_UTILS_PKG.insert_ap_inv_interface()”

iv. The invoice number is derived with the below logic

upper(lv_regime.regime_code)||'/'||pn_org_id||'/'||ln_tmp

ln_tmp : jai_rgm_settlements_s1.NEXTVAL.

In the test case quoted above, the generated invoice number is

“TCS/7581/10340”.

Below is the screen shot of the Invoice at AP

 Below is the spool from ap invoices and lines table for the
above created AP invoice.

invoice lines spool.xls

v. Then the procedure call

“JAI_AP_UTILS_PKG.insert_ap_inv_lines_interface()” would
make the entry into invoice lines interface with the TCS liability
account.

vi. Then the Payable Open Interface Import process would be

triggered for the source “INDIA TAX SETTLEMENT” and the
invoice would be created.

v. Remarks/References

And most importantly , once the settlement is carried out IT CANNOT BE

reversed.

TCS process Payment

i. Objects involved/Affected:

a. Name: Settlement Payment Details(JAINRGSP.fmb)

b. Navigation: India Localization > India TCS/VAT/Service Tax/FBT >

Period End > Settlement Payment Details

ii. DB Sources involved

iii.
Tables Packages

JAI_RGM_SETTLEMENTS JAI_CMN_RGM_SETTLEMENT_PKG

JAI_RGM_STL_BALANCES JAI_CMN_RGM_RECORDING_PKG

iv. Important Validations

v. Technical Flow/explanation

a. The form has the two sections

 Header &

 Details

b. The header section shows the details of the TCS authority, Site, invoice
created for settlement, amount and invoice status.

c. The Balances block would show the actual balance details.

d. Once the invoice status is Paid, then the Process Payment check box
and Process Payment buttons would be enabled

e. The Process Payment button would call the procedure

“JAI_CMN_RGM_SETTLEMENT_PKG.register_entry()” which
populates the TCS repository with the processed amount details.

f. Once the Process Payment is successful, then the status would be set
to SETTLED and Header’s Payment date is set to SYSDATE. With this
the settlement process ends.

vi. Remarks/References
TCS Accounting

i. Important Validations

 Procedure jai_cmn_gl_pkg.create_gl_entry , is called ,which inserts the data into

GL interface .
 For further understanding , we can review the log file ( via fnd debug log ) which
prints the below accounting entries . Below are the entries :-

Refer the file for flow:-

**********Inside gl_interface_insert_new Procedure

9.0 The Value of v_reference_10 is India Localization Entry for sales
9.1 The Value of v_reference_23 is jai_ar_tcs_rep_pkg.wsh_interim_
9.2 The Value of v_reference_24 is wsh_new_deliveries
9.3 The Value of v_reference_25 is delivery_id
9.4 The Value of v_reference_26 is 2999212
9.4 The Value of v_set_of_books_id is 1019
9.4 The Value of v_organization_code is IN1
9.4 The Value of p_organization_id is 7501
9.4 The Value of p_credit_amount is 137
9.4 The Value of p_debit_amount is 0
**********End of gl_interface_insert_new Procedure
**********Inside gl_interface_insert_new Procedure
9.0 The Value of v_reference_10 is India Localization Entry for sales
9.1 The Value of v_reference_23 is jai_ar_tcs_rep_pkg.wsh_interim_
9.2 The Value of v_reference_24 is wsh_new_deliveries
9.3 The Value of v_reference_25 is delivery_id
9.4 The Value of v_reference_26 is 2999212
9.4 The Value of v_set_of_books_id is 1019
9.4 The Value of v_organization_code is IN1
9.4 The Value of p_organization_id is 7501
9.4 The Value of p_credit_amount is 0
9.4 The Value of p_debit_amount is 137
**********End of gl_interface_insert_new Procedure

 Inserts the records with following values into Gl interface . status as New, if accounting date is null then
sysdate value is entered , v_reference_10 is populated which is used for identifying which transaction. The
values will be as v_reference_10 := p_reference_10 || ' for the Organization code ' || v_organization_code;

ii. Technical Flow/explanation

  Coming to the TCS Accounting , the entries will be as below for interim
accounting
 During Shipment ,
For TCS Liability Account ,
entries are Credit Tax amount
Debit 0
 For Interim Liability Account ,
Credit 0
Debit Tax amount

 Shipment Entries

Account Debit Credit

TCS Interim Liability A/c TCS Tax Amount ---

TCS Liability A/c -- Tax Tax Amount

 When Invoices are Imported

Account Debit Credit

Receivables A/c TCS Tax amount --

TCS Interim Liability -- TCS Tax amount

A/c

 On Saving a Standalone AR Invoice / Manual AR Invoice :

Account Debit Credit

Receivable A/c TCS Tax amount --

TCS Interim Liability -- TCS Tax amount

A/c

 In a way the accounting entries are the same either for Imported (
O2C Created AR Invoices ) or the Manual AR Invoices

 On Completing a Manual AR Invoice

 Account Debit Credit

TCS Interim Liability TCS Tax Amount --

A/c

TCS Liability A/c -- TCS Tax amount

 In a way once an AR Invoice is completed , the generated TCS

Interim Liability account generated during saving of AR invoice is
knocked off on completion of “Complete Event “ and now the
respective defined TCS Liability Account is hit.

 In a way the amount moves from Interim Liability account to Liability

account.

 On Saving an Advance TCS receipt , the system would generate a

Debit note and the below are the respective entries generated for
the debit note :-

Account Debit Credit

Receivable A/c TCS Tax amount --

TCS Liability A/C -- TCS Tax amount

 When the created Advance TCS Receipt is reversed , below are

the respective entries generated for the created AR Credit note :

Account Debit Credit

TCS Liability A/c TCS Tax amount --

Receivable A/c -- TCS Tax amount

 In the way the created Debit note for the event of “creation of
Advance TCS receipt “ , the entries are reversed by the created
credit note on Reversal.
  On Applying Receipt to AR Invoice , system creates a credit note
and below are the entries for the Credit note

Account Debit Credit

TCS Liability A/c TCS Tax amount

Receivable A/c -- TCS Tax amount

 Unapplicatiion of Receipt from the AR Invoice , here the system

reverses the entries by creating a Debit note and below are the
generated for that Debit note:-

Account Debit Credit

Receivable A/c TCS Tax amount --

TCS Liability A/c -- TCS Tax amount

TCS Reports Available

Below are the list of available reports relating to TCS .

A. India – Generate TCS Certificates :

On running this concurrent, it will generate TCS Certificate number against each
customer for the settlement. If our requirement is to issue certificates quarterly
and settlement carried out monthly, then need to run this concurrent for every
Quarter but not after each settlement.

a. Objects involved/Affected:

i. Name: India - Generate TCS Certificates

ii. Executable : JAINTCSC

iii. Parameters:-
b. DB Sources involved

i. File name :
jai_ap_tcs_processing_pkg.generate_tcs_certificates

c. Program name : India - TCS Quarterly Report

Used to generate TCS Quarterly Report.

i. Executable : JAINTCSQ
ii. File name : JAINTCSQ

d. Program name : India - TCS Form 27B

Concurrent is submitting for generating TCS Form 27 B report for India
Localization.

i. Executable : JAINTCSB
 ii. File name : JAINTC
iii. Parameters:-

e. Program Name : India - TCS Certificates

Concurrent for generating India – TCS Certificates were the transaction
were carried out certificates for the necessary Tax authority.

i. Executable : JAINTCSCR
ii. File name : JAINTCSCR
iii. Parameters:

f. Program name : India TCS Settlement Report

This concurrent is necessary to run even before we do run the actual
settlement process. This is submitted from either India Local Payables
or India Local Receivables Responsibility
i. Executable: JAINSTLR
ii. File name : JAINSTLR
iii. Parameters:-
g. Program name : India - Program to Generate eTCS Quarterly Returns
This concurrent is submitted from the India Local Receivables
responsibility for the generate of eTCS Quarterly return certificate.

i. Executable : JAINETCSQ
ii. File name : jai_etcs_pkg.quarterly_returns
iii. Parameters:-

h. Program Name : India - Program to Generate eTCS Yearly Returns

This concurrent is ran from the India Local Receivables application for
the generation of eTCS Yearly Returns details

File name : jai_etcs_pkg.yearly_returns

Parameters:-
i. Concurrent program name : India - TCS Annual Report
Necessary to run the concurrent for the submission of the TCS Annual
report which is specific to collection code where this is submitted from
the India Local Receivables responsibility.
i. Executable JAINTCSY
ii. File name : JAINTCSY
iii. Parameters:-
2016 Budget Amendment for TCS

As per the new amendment for TCS 1 % needs to be collected for sales of goods and services in cash exceeding 2
Lakhs under section 206C.

Below are the details of the amendment:-

1. As per 2016 Budget Amendment Tax need to be collected at Source @ 1 % on sale of goods and services in
cash exceeding two lakh - u/s 206 C.

a.The sales would be against cash/cheque/RTGS, etc. - TCS deduction is applicable for sales made against cash.
The present system is not having the functionality to configure the same.

This amendment will take effect from 1st June, 2016.

Clause 86 of the Bill seeks to amend section 206C of the Incometax Act relating to profits and gains from the
business of trading in alcoholic liquor, forest produce, scrap, etc.
The aforesaid section, inter alia, provides that the seller shall collect tax at source at specified rate from the buyer at
the time of sale of certain goods specified under the said section.

It is proposed to amend the aforesaid section to provide that the seller shall collect the tax at the rate of one per cent.
On the sale of motor vehicle of the value exceeding ten lakh rupees in cash or
by the issue of a cheque or draft or by any other mode or for sale of any other goods (other than bullion and
jewellery) or providing any service in cash exceeding two hundred thousand rupees.

2.TCS 1% to be considered for When invoice cumulative value exceed threshold limit i.e. above 2 lakhs, i.e. if the
customer is having 3 invoices for the day, the cumulative sales amount
against cash exceeds the threshold limit, system needs to collect the TCS for the cumulative invoices amount.

3. The present system configuration is for specific categories - TCS 1% needs to be deducted irrespective of item
item category for cash sales exceeds the threshold limit.

Constraints faced while mapping the requirement in the system:-

To support the requirement of defaulting TCS tax on Sale of goods and service on Cash exceeding 2 Lakhs,

1) Identifying Cash Payment transaction is not feasible.

There is no facility to track the cash payments in E-Business suite (As cash payment is mapped through dummy
bank account).

2) Threshold setup for TCS will be Cumulative and we do not support Single threshold.
Also there is no mapping between Threshold and Transaction types.

Its very complex to change the threshold to single based on transaction type.

Instead of defaulting the tax ,User can follow the workaround of attaching 1%TCS tax for an Invoice with Cash
Payment.
Considering the lower number of cash transactions, Request you to follow the workaround of attaching the tcs tax
manually.
Workaround Suggested

1. Note that as mentioned earlier, the requested feature is a gap in the Product and we need to arrive at some other
feasible work around to map the business requirement till the current issue reaches a logical conclusion.

An ER # 23515479 is logged .

2. We should also note that there is a high complexity involved to achieve any such feasible automation to have the
TCS applicability for the transactions.

3. Also, the mapping of cash receipt and non-cash receipts with the application varies from Business to Business (as
there is no such generic feature available to bifurcate cash & check transactions in Application)

4. The current TCS requirement considers the combination of the invoice value and the corresponding receipts.

5. For example, consider one of the following business scenarios: (e.g. TCS should be applicable if the transaction
value exceeds: 800,000)

5.1. Customer invoice of Rs. 800, 000.

5.2. User gets customer receipts of Rs. 799,000 in the way of multiple Cheques (wherein there is no TCS
applicability)
5.3. User receives another Customer receipt for Rs. 1,000 => This event would result in TCS applicability on the total
800,000 @ 1%

6. In view of various possible complex scenarios, at this moment it is not feasible to incorporate any automation in
terms of the current functionality.

7. Following are the only possible options to map the requirement right now vis-a-vis product functionality.

Option A:
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1. Build a Custom process/solution to track the running threshold amount (based on the business requirement, as the
TCS applicability is also per transaction value in some cases).
2. Default the corresponding TCS tax category (@1%) .
3. Stop the transaction using a custom control if the TCS is not applied by the user (if the threshold is breached).

Option B:
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1. Apply TCS tax category manually to all transactions.
2. Process the transactions.
3. Pass the manual adjustment entries for the transactions where the TCS was not applicable.