Oracle Financials for India (OFI)

GST- TDS handling post GST patch

Creation Date: 01-June-2017

Last Updated: 01-June-2017
Document Ref:
Version: 1.0

Organization: Oracle India Private Limited.

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Document Control

Change Record

Date Author Version Change Reference

01-June- Jony Sam 1.0 Initial document

2017 Ashish Gupta

Reviewers

Name Position
Rajnish Kumar Director, Tax Development
V S Baburaj Director, Product Strategy

Audience

Name Position

12.2.X Implementation team

12.2.X Customers

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Table of Contents

Contents
Introduction .................................................................................................................................................................................................................................................4

Scope ...........................................................................................................................................................................................................................................................4

1. Steps for TDS Migration .......................................................................................................................................................................................................................5

1.1 Pre Requisite.................................................................................................................................................................................................................................5

1.2 Migration Steps .............................................................................................................................................................................................................................5

2. Post Migration Steps: ...........................................................................................................................................................................................................................6

2.1 Verify the TDS migration: ............................................................................................................................................................................................................6

2.2 Manual Setups: .............................................................................................................................................................................................................................6

3. TDS Transaction Migration: .................................................................................................................................................................................................................7

4. Post TDS migration process changes: ...............................................................................................................................................................................................7

4.1 GDF concept obsolete: ................................................................................................................................................................................................................7

4.2 Configuration: ................................................................................................................................................................................................................................7

4.3 No Section code to Tax code mapping ......................................................................................................................................................................................7

4.4 No TDS Authority/Site mapped to tax rate ................................................................................................................................................................................7

4.5 No Requirement for mapping different TDS Authority/Site to different TDS tax code level.................................................................................................8

5. Important Migration Scripts: .................................................................................................................................................................................................................9

Checklist after executing the above Migration scripts: ............................................................................................................................................... 10

6. Frequently Asked Questions: ............................................................................................................................................................................................................ 11

7. Points to Remember: .......................................................................................................................................................................................................................... 11

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Introduction
This document describes about behavioral changes to TDS functionality post GST patches are applied.
The document depicts how the TDS feature will behave, what are actions required by users for TDS
feature working, once the GST patch is applied.

The TDS architecture is under-going change due to architecture enhancements done in product for GST
uptake. The intent is to minimize the user actions and impacts on TDS on end users due to the re-
architecture for TDS functionality.

Scope
As Indirect taxes (GST) will be a part of New GST solution, all the existing setup and transactional flows
will undergo a change according to the NEW GST solution Setups and Transaction flows for TDS.
The TDS functionality will remain same as current India Localization.
As part of our endeavor to minimize the business interruptions, the configuration and transactional
migration to new architecture will be handled by Oracle GST solution. The existing configuration and
transactions will be migrated from current India Localization system to GST system. There is no manual
intervention required for the same. The migration flow is being described in this document.

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1. Steps for TDS Migration

1.1 Pre Requisite

The TDS migration patch can only be applied after applying the India GST functional patch.

1.2 Migration Steps

1. Tax Master (Tax Code) are migrated and created as Tax rate.

2. Tax category created and updated with the respective tax rate per new GST solution.

3. As per migration strategy the current Regimes will be replaced as below:

TDS_SECTION replaced with TDS REGIME
WCT_SECTION replaced with WCT REGIME
ESSI_SECTION replaced with ESSI REGIME

Note: If WCT/ESSI Sections are not used in existing India Localization then the WCT/ESSI regimes will
not get created. If business requires in future the WCT/ESSI regimes can be created manually.

4. Current India Localization Threshold Setup will be migrated.

5. The Tax Types will be migrated as

TDS_TYPE
WCT_TYPE
ESSI_TYPE
TDS_EDUCATION_CESS
TDS_SH_EDU_CESS
TDS_SURCHARGE
This will be based on current application (Usage) for TAX
TYPES(TDS_SECTION/WCT_SECTION/ESSI_SECTION)

6. Current India Localization Transactions data for TDS will be migrated to New Data model of
Withholding Tables in GST solution.

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2. Post Migration Steps:
Post applying TDS Migration patch navigate to Regime setup and update the following fields for migrated
TDS Regime
Tax Calendar
Tax Authority

2.1 Verify the TDS migration:

The below checklist shows that the TDS Migration applied successfully:
TDS Regime created.
Tax type created.
Tax Rate created from existing tax code in current India Localization
TDS Threshold Setup created from existing setup in current India Localization
Tax category created from existing Tax Category in current India Localization

2.2 Manual Setups:

The TDS migration is not applicable for following entities

Supplier Additional Information
TDS Year Information
TDS Regime Attributes

The above setups should be performed manually:

First Party Registrations (TDS attributes)

Third Party Registrations (Supplier Additional Information)
Note: Both Null site and Site need to be setup manually.

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3. TDS Transaction Migration:
The concurrent program will help in migration of the TDS transaction data
The program can be run multiple times for incremental migration.

Concurrent Program Name: India - TDS Migration Procedure

Jai_ap_tds_inv_taxes =>jai_ap_wthld_inv_taxes
jai_ap_tds_prepayments =>jai_ap_wthld_prepayments

4. Post TDS migration process changes:

4.1 GDF concept obsolete:

After GST Rollout, system will have Tax category based TDS solutions. No TDS GDF will be
available in AP invoices Distributions.

4.2 Configuration:
Only migrated Regime (TDS/WCT/ESSI) Tax Type and Rates should be used for
Transactions.

Supplier Additional Information mapped to Third party Registration which captures the
TDS regime and TDS attributes like PAN Number/Default section code etc.

4.3 No Section code to Tax code mapping

Tax code is now mapped to rates.

No TDS/WCT/ESSI section type/Section code mapped to rate, both are independent,

Any section code can be provided to any tax rate for type Withholding.

4.4 No TDS Authority/Site mapped to tax rate

Moved under First party Registrations with Regime type as Withholding.
First Party Registrations setups will hold TDS Regime assignment with TAN NUMBER,
TDS Tax Authority and Site

Reporting Code will have all the existing TDS Regime attributes:
Deductor details for ETDS
State code
Division
Deductor Phone Number

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 4.5 No Requirement for mapping different TDS Authority/Site to different TDS tax
code level.
Going forward it will be one Tax Authority and site for particular first party and all tax
authority invoices has to be created against the same.

The existing India Localization feature to group the payments for tax authorities for
Section, the same will be achieved using Payment segregation based on section code,
by following the PAY GROUP Approach. The steps for using Pay Group is defined below

Configure the 'PAY GROUP'

Navigation -> Oracle Payables-> Lookups->Purchasing -> ->Lookup Code=>'PAY
GROUP'
Define Paygroup code same as the section as per the lookup "JAI_TDS_SECTION".
Eg: Code=>'SEC. 194(C)'
PAY GROUP creation
Code =>SEC. 194(C)
Meaning =>SEC. 194(C)
Description =SEC. 194(C)

So while TDS Invoice is generated system will automatically derive the Pay group based on the
section code attached to the transaction. The Invoices can be filtered on Pay group basis
during payments to the TDS Authority.
Client extension package is available which can customize the logic of Pay Group Derivation
based on their business need so that TDS generation procedure will populate the desired Pay
group to the TDS Vendor Invoice automatically.

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5. Important Migration Scripts:
Version SQL 1 Description
12.1.X jai_tax_code_to_ctgs_upg.sql This script migrates existing India
Localization tax codes to create new
tax code and Tax Category
12.1.X jai_tds_gdf_tax_ui_upg.sql This script derives the tax category
created for the TDS tax id from
Invoice distributions and updates the
newly created tax category in
JAI_AP_TDS_INV_TAXES.

12.1.X jai_thstp_taxcode_ctgs.sql Update the tax category id in

threshold taxes tables (Threshold
setup form)

12.1.X jai_regimes_mig.sql Script creates TDS/WCT/ESSI

regimes.
Note: WCT/ESSI will be created if
already existing in current India
Localization.
12.1.X jai_wthld_taxtyp_mig.sql Script creates tax types like
TDS_TYPE/WCT_TYPE/ESSI_TYPE
as per the existing TDS/WCT/ESSI
setup definitions and taxes usage.

12.1.X jai_wthld_taxrate_mig.sql Script helps to migrate tax rate from

the existing tax codes from table
(JAI_CMN_TAXES_All ) like TDS
/WCT/ESSI. .
12.1.X jai_wthld_taxcatg_mig.sql Script helps to migrate all the existing
tax category to new tax category
table with related tax rate
12.2.X jai_regimes_mig.sql Script creates TDS/WCT/ESSI
regimes.
Note: WCT/ESSI will be created if
already existing in current India
Localization.
12.2.X jai_wthld_taxtyp_mig.sql Script creates tax types like
TDS_TYPE/WCT_TYPE/ESSI_TYPE
as per the existing TDS/WCT/ESSI
setup definitions and taxes usage.

12.2.X jai_wthld_taxrate_mig.sql Script helps to migrate tax rate from

the existing tax codes from table
(JAI_CMN_TAXES_All ) like TDS
/WCT/ESSI.
12.2.X jai_wthld_taxcatg_mig.sql Script helps to migrate all the existing
tax category to new tax category
table with related tax rate
12.2.X jai_wthld_thrshtyp_mig.sql Script creates tax types like
TDS_TYPE/WCT_TYPE/ESSI_TYPE
as per the existing TDS/WCT/ESSI
setup definitions and taxes usage.

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Note: For both 12.1.X and 12.2.X - Once all the above Migration scripts completed successfully the
concurrent program (India - TDS Migration Procedure) can be executed to migrate the TDS Transactions
Data.

Checklist after executing the above Migration scripts:

Description Current IL Table TDS GST Solution Table

All existing tax categories for jai_cmn_tax_ctgs_all jai_tax_categories_lines
type TDS migrated to new tax
category tables
All existing taxes of Type TDS jai_cmn_taxes_all jai_tax_rates
migrated to Tax Rate in GST
Table
All existing Threshold setups jai_ap_tds_thhold_types , jai_ap_tds_thhold_type_slabs
migrated to new GST threshold jai_ap_tds_thhold_slabs
form

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6. Frequently Asked Questions:
Question 1. Whether the migration works for all OU in system (Active/inactive)

Answer 1. Yes, current migration script shared will migrate all data of all Operating units involved in TDS
transaction in existing in current India Localization system.

Question 2. Whether the migrated TDS regime should be used and how?

Answer 2. Yes, use only Migrated TDS/WCT/ESSI regime (Mandatory) because all transactions data will
reference only the migrated regime details.

Note: In system you cannot have multiple ACTIVE TDS regime.

7. Points to Remember:

Existing customer with TDS should use only migrated TDS/WCT/ESSI regime.
Use migrated tax rate, Check if the Liability account is provided at the Tax rate level.
Check Regime level TDS calendar and Tax Authority is provided
Only migrated tax category should be used for existing transactions
First party registration need be done for Withholding Type with all TDS attributes.
Third party registration (Supplier Additional information) should be setup for Null and Site level
with TDS details.

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