VAT India/User Documentation

Contents 1 Installation 1.1 Dataset Application 2 Content of the module 2.1 Reports 2.2 Karnataka VAT 2.3 Vat Sales Register 2.4 Vat Purchase Register 2.5 VAT Setup 3 Configuration 3.1 Taxes Dataset 3.2 Products and Tax Rates under VAT 3.3 Purchase and Sales Transactions 3.4 VAT Setup 4 Reports 4.1 Vat Sales Register Report 4.2 Vat Purchase Register Report 4.3 Vat 100 Report 5 VAT Purchase Register 6 VAT Sales Register 7 Karnataka VAT 7.1 E-Sugam Setup 7.1.1 VAT Commodity Code 7.1.2 Document Type 7.2 Generating XML For E-Sugam

Installation

This module is installed once the Professional Pack is installed.

Dataset Application

This module provides VAT Commodity Codes used for the State of Karnataka in the form of reference data.
This reference data can be applied either at client level or at organization level as explained here : Karnataka VAT.

Content of the module

Once installed this module creates a new folder named "VAT" under India Localization menu.

To check the contents of the VAT sub-menu go to Financial Management -> India Localization ->VAT.

Each of the items above is briefly explained below.

Reports

This sub-menu contains some reports related to VAT that are:

• VAT Sales Register Report
• VAT Purchase Register Report
• and VAT 100

Each report is explained in detail in the section Reports.

Karnataka VAT

This module also provides functionality specific to the state of Karnataka. VAT Commodity Codes for Karnataka are provided in the form of a dataset.

For the movement of goods that does not involve Sales or Purchase transactions, the Government of Karnataka provides a facility called E-Sugam.
The movement of the goods can be caused by job work, value addition to the goods or movement between different warehouses.
These goods movements as well as "Internal consumptions" can be captured by using E-Sugam for Karnataka.

E‐Sugam is a facility provided to the dealers to upload the details of the goods being transported; into the government's website.
While dispatching/receiving goods, Dealers have to upload E-Sugam on to the site and obtain a unique number as a proof of uploading such transportation details.

This functionality helps you to directly upload the XML file on Karnataka Government's tax department website.

Vat Sales Register

As the name suggests, this window displays Sales Invoices with products related to a Tax Rate under a VAT Tax Category.

The data shown in this window is the same as the data shown in the VAT Sales Register Report. This view allows the end-user to filter and navigate through the data.

Vat Purchase Register

As the name suggests, this window displays Purchase Invoices with products related to a Tax Rate under a VAT Tax Category.

The data shown in this window is the same as the data shown in the VAT Purchase Register Report. This view allows the end-user to filter and navigate through the data.

VAT Setup

This setup is required for defining primary and secondary tax rates for VAT Registers based on organizations. Each state has primary and secondary tax rates and optionally other rates.

Therefore:

• First thing is to define the "Tax Rates" in the Tax Rate window. Those tax rates need to be linked to a VAT Tax Category and besides, need to be related to the products.
• Second thing is to define the "Primary", "Secondary" and "Other" taxes, if any, in the VAT Setup window. Those rates need to be related to the Organizations.

Configuration

This section explains VAT configuration so the user can generate VAT reports and view VAT registers.

Taxes Dataset

VAT module depends on the VAT tax rates which are provided in the module Taxes Configuration India in the form of a dataset.

This dataset needs to be applied as described here.

Once done, check that the VAT Tax Rates and Tax Categories are populated in the "Tax Category" and "Tax Rates" windows.

Products and Tax Rates under VAT

For extracting VAT related reports, "Product's Tax Rate" needs to have the option "VAT" selected in the "Indian Tax Category" field.

Please see below an example of a "Tax Rate" that has the option "VAT" linked to the "Indian Tax Category" field.

Purchase and Sales Transactions

1. In order to generate and view reports for both sales and purchase VAT, there has to be transactions and invoices for the same i.e. Sales Invoice and Purchase Invoice.
2. Sales Invoices needs to include products with tax rates that have the "Indian Tax Category" set as "VAT", as explained in the above section.
3. Similarly Purchase Invoices also need to include products with tax rates that have the "Indian Tax Category" set as "VAT", as explained in the above section.

Please see below a sample of a Sales Invoice which has a product linked to a VAT India Tax Category.

At the bottom right corner, we can see that the tax column has "KAVAT" (Karnataka VAT), this tax rate is related to a VAT Indian Tax Category.

Please see below a sample Purchase Invoice which has a product liked to a VAT India Tax Category tax rate.

At the bottom right corner, we can see that the tax column has "KAVAT" (Karnataka VAT), this tax rate is related to a VAT Indian Tax Category.

VAT Setup

This setup allows the user to define primary and secondary tax rates for VAT Registers (Purchase and Sales Registers) based on organizations.

The fields on this screen are explained as below

1. Login as the Administrator of your client.

2. Go to Financial Management -> India Localization -> VAT -> VAT Setup or just type "VAT Setup" in Quick Launch window.

3. Enter the values for the fields as explained below:

• Commercial name : A Unique name to identify the VAT setup for an organization.
• Primary Tax : Primary VAT rate being used by organization.
• Secondary Tax : Secondary VAT rate being used by organization.
• Other Tax : Other VAT rates if required by the organization can be configured here.

If the Primary, Secondary and other taxes are not defined, the Sales, Purchase Register windows would show blank in the "Primary", "Secondary" and "Other taxes" columns and their respective values would not appear.

Reports

This section explains in detail the different VAT reports that can be generated.

Vat Sales Register Report

This report provides a view of all the Sales Invoices which have a VAT tax rate associated to its lines.

It displays the details of the Sales Register window in the form of a report.

To view this report, please follow the following steps:

1. Login as the Administrator of your client.
2. Go to Application -> Financial Management -> India Localization -> VAT -> Reports -> VAT Sales Register or just type VAT Sales Register in the Quick Launch window.
3. Select the Organization for which the report has to be generated.
4. Select the time frame (From Date & To Date).
5. Select the output type.There are two options available ie., Excel and PDF.

The report in pdf format is generated as shown below.

The details of the report are as below:

• Customer: Name of the Business Partner
• Product: Product that is associated with VAT Tax Rate.
• Invoice No: Sales Invoice No that includes the product
• Invoice Date: Sales Invoice Date
• Primary Taxable Amt: Total Invoice Amount on which the tax can be levied.
• Primary Tax Amt: Tax Amount after applying the Primary Tax Rate.
• Secondary Taxable Amt: Total Invoice Amount on which the tax can be levied.
• Secondary Tax Amt: Tax Amount after applying the Secondary Tax Rate.
• Other Taxable Amt: Total Invoice Amount on which the tax can be levied.
• Other Tax Amt: Tax Amount after applying Other Tax Rate.

Note that if the VAT tax rate of the product is also set up as "Primary Tax Rate" of the Organization in the VAT Setup window, then "Primary Taxable Amt" and "Primary Tax Amt" are considered.
Same applies to Secondary and Other Tax Rate.

In the example about:

• line 1 and 3 Product's VAT Tax Rate of 14,5% is also set up as "Primary Tax Rate" of the Organization
• Line 2 Product's VAT Tax Rate of 5,5% is also set up as "Secondary Tax Rate" of the Organization

Vat Purchase Register Report

This report provides a view of all the Purchase Invoices which have a VAT tax rate associated to its lines.

It displays the details of the Purchase Register window in the form of a report.

To view this report, please follow the following steps:

1. Login as the Administrator of your client.

2. Go to Application -> Financial Management -> India Localization -> VAT -> Reports -> VAT Purchase Register or just type "VAT Purchase Register" in the Quick Launch window.

3. Select the Organization for which report has to be generated.

4. Select the time frame (From Date & To Date).

5. Select the output type.There are two options available ie., Excel and PDF.

The report in pdf format is generated as shown below.

The details of the report are as below:

• Supplier: Name of the Business Partner
• Supplier TIN: TIN Number of the Business Partner. TIN Number is captured under Partner Additional Fields tab of the Business Partner window.
• Product: Product that is associated with VAT Tax Rate.
• Invoice No: Purchase Invoice No that includes the Product
• Invoice Date: Purchase Invoice Date
• Primary Taxable Amt: Total Invoice Amount on which the tax can be levied.
• Primary Tax Amt: Tax Amount after applying the Primary Tax Rate.
• Secondary Taxable Amt: Total Invoice Amount on which the tax can be levied.
• Secondary Tax Amt: Tax Amount after applying the Secondary Tax Rate.
• Other Taxable Amt: Total Invoice Amount on which the tax can be levied.
• Other Tax Amt: Tax Amount after applying Other Tax Rate.

Note that if the VAT tax rate of the product is also set up as "Primary Tax Rate" of the Organization in the VAT Setup window, then "Primary Taxable Amt" and "Primary Tax Amt" are considered.
Same applies to Secondary and Other Tax Rate.

In the example about:

• lines 1, 2 and 3 Product's VAT Tax Rate of 14,5% is also set up as "Primary Tax Rate" of the Organization.

Vat 100 Report

This report is provided in the format required by the Government of India, as it is a consolidated view of the "Tax Payable" to the Government.

This report calculates the difference between "Sales" and "Purchase" Invoices that have a VAT tax rate associated to its lines.

Taxes are clubbed together based on the tax type, for instance:

• CST means Central State tax, so all the Tax Rates that are a CST tax type (i.e. CST 2%) and besides are included in a sales invoice come under the section "Inter State Sales Tax".
  The ones of this type that are included in a purchase invoice come under the section "Purchase Tax".
  In a next release of this report, these last purchase ones will come under a new section named "Inter State Purchase Tax".

• Tax Rates with KAVAT are Karnataka Local (or State) Taxes, therefore the Tax Rates of this type included in a sales invoice come under the section "Local Sales Tax".
  The ones of this type that are included in a purchase invoice come under the section "Purchase Tax"
  In a next release of this report, these last purchase ones will come under a new section named "Local Purchase Tax".

To view this report, please follow these steps:

1. Login as the Administrator of your client.
2. Go to Application -> Financial Management -> India Localization -> VAT Reports -> VAT 100 Report or just type "VAT 100 Report" in the Quick Launch window.
3. Select the Organization for which the report has to be generated.
4. Select the time frame (From Date & To Date).
5. Select the output type. There are two options available ie., Excel and PDF.

The report in pdf format is generated as shown below.

The details of the report are as under:

• Tax Description : that is the different tax rates descriptions that are considered in the report
• Tax Payable : that is the tax amount.
  In the next release of this report it is going to be renamed as "Tax Amount".
• Amount: that is the tax base amount where tax amount is calculated.
  In the next release of this report it is going to be renamed as "Tax Base Amount".

It is important to remark that in the next version of this report below sub-totals are going to be added, therefore the "Tax Payable" to the Central and State Government are properly calculated upon those sub-totals:

• Inter State Sales Tax subtotal
• Inter State Purchase Tax subtotal
  Therefore [Inter State Sales Tax - Inter State Purchase Tax] = Total Tax Payable to Central Government.
• Local Sales Tax subtotal
• Local Purchase Tax subtotal
  Therefore [Local Sales Tax - Local Purchase Tax] = Total Tax Payable to the State Government.

VAT Purchase Register

This window provides a consolidated view of all the Purchase Invoices that have a VAT tax rate associated to its lines. It is a read-only window.

To view the Purchase Register follow these steps:

1. Login as the Administrator of your client.
2. Go to Application -> Financial Management -> India Localization -> VAT -> VAT Purchase Register or just type "VAT Purchase Register" in Quick Launch window.
3. VAT Purchase Register window is shown below.

To filter the invoices date-wise, enter a date-range as shown below.

VAT Sales Register

This window provides a consolidated view of all the Sales Invoices that have a VAT tax rate associated to its lines. It is a read-only window.

To view the Sales Register follow these steps:

1. Login as the Administrator of your client.
2. Go to Application -> Financial Management -> India Localization -> VAT -> VAT Sales Register or just type "VAT Sales Register" in Quick Launch window.
3. VAT Sales Register window is shown below.

To filter the invoices date-wise, enter a date-range as shown below.

Karnataka VAT

Goods movement as well as internal consumptions can be captured by using E-Sugam for Karnataka.
This functionality helps you to directly upload the XML file to commercial tax department website of Karnataka.

E-Sugam Setup

VAT Commodity Code

Each India's state has specific VAT Commodity Codes defined.

Karnataka Specific Commodity Codes are provided in the form of a dataset. This dataset needs to be applied as described here. Then, VAT Commodity Codes can be applied to the products as applicable.

Additionally new VAT Commodity Codes can be created as described below:

1. Login as the Administrator of your client.

2. Go to Financial Management -> India Localization -> VAT -> Karnataka VAT -> VAT Commodity Code or just type "VAT Commodity Code" in Quick Launch window.

3. You can see the list of available Commodity Codes.

4. To create a new Commodity Code, click New Record.

• From the Organization dropdown list, select the organization for which the VAT Commodity Code needs to be defined. To define the Commodity Code for all organizations, select *.
• In the Search Key field, type a keyword that will be used to search for this Commodity Code.
• In the Commercial Name field, type the name of the Commodity Code.
• In the Description field, type a description of the Commodity Code if required.
• To make the Code Active (so it will be visible and available for selection in Openbravo) select the Active checkbox.
• Click Save.

Document Type

As seen earlier, E-Sugam is a facility provided by Government of Karnataka to track the goods movements that does not involve Sales or Purchases.

To identify such movements, an E-Sugam Doc Type with different options is provided.
The user can then set the "E-Sugam Doc Type" required for the existing Document Types by following below detailed steps

1. Go to Financial Management -> Accounting -> Setup -> Document Type or just type "Document Type" in the Quick Launch window.
2. Select the Document type that needs to be tracked, for instance "Goods Movements"
3. Select "Invoice" in the field "E-Sugam Doc type".

The list of options available for selection in the field E-Sugam Doc Type are:

• Consignement Note : that is the Goods Shipment for Invoice
• Invoice : either Purchase/Sales Invoice
• Job Change/Job Work Voucher : Goods Shipments to a third party location for some job work.
• Self Purchase Bill: Goods Receipts for internal consumption.
• Stock Transfer Memo : Warehouse to Warehouse transfer. It can be same or different location. Organization is the same for both these warehouses.
• Others : For any other requirement than the ones mentioned above.

Repeat steps 2 and 3 above for other "goods movements" related document types that need to be included in the E-Sugam report.

Generating XML For E-Sugam

After the set-up explained above and based on the Goods Movements booked in Openbravo, user can generate XML File for E-Sugam by following below detailed steps:

1. Go to Application >> Financial Management >> India Localization >> Karnataka VAT >> Generate XML for E-Sugam or just type "Generate XML for E-Sugam" in the Quick Launch window.
2. Select from the following parameters:
   1. Document Type for which E-Sugam needs to be generated. "Document Types" that have E-Sugam Doc Type defined are available in the list to be selected.
   2. From Date and To Date : Date range for when the E-Sugam needs to be generated.
   3. Document No: i.e Document No of a Goods Shipment if E-Sugam needs to be generated for a Goods Shipment, or Document No of Goods Receipt if E-Sugam needs to be generated for a Goods Receipt.
   4. Business Partner
3. Click OK.

the XML File that is generated is as shown below:

It is important to remark that:

• For any Goods Movements E-Sugam is mandatory. The Goods Movements can be either an internal movement (for a job work or a warehouse transfer inside the same org) or related to an invoice. So Invoices are also included in it.

The information included in the XML file is explained below:

1. <Tin>29220676272</Tin> The TIN Number of the organization, captured from the Statutory Details tab of the Organization window.
2. <InvNo>RGS/1000007</InvNo> The Invoice Number
3. <InvDt>2012-12-15</InvDt> The Date of the Invoice
4. <Dn_dt>2012-12-15</Dn_dt> The Date of the Document (only in case the document it is not an invoice)
5. <Buy_Tin>29000000000</Buy_Tin> The Buyer's/Vendor's TIN Number, captured from the Partner Additional Fields tab of the Business Partner window.
6. <Buy_Nm>Dr.Geok Yong</Buy_Nm> The Name of the Buyer/Vendor. This data depends on the type of document, for instance for Job Work and goods Shipments that is the name of the "To Organization".
7. <Fro_Place>Bangalore</Fro_Place> From Place (Origin), that is the address of the Organization or the address of the Vendor depending on the goods movement in/out
8. <To_Place>Bangalore</To_Place> To Place (Destination), that is the Customer address or the Organization address depending on the goods movement out/in
9. <Goods_Desc>House hold items</Goods_Desc> Description of the Goods, captured from the document
10. <Qty_unit_det>26</Qty_unit_det> Quantity of the goods, captured from the document
11. <Val>5000</Val> Value/Cost of the the goods, that is the Unit price of the product * Quantity of the goods included in the document.
12. <Tr_Veh_Own/> Name of the Owner of the vehicle, this one is not currently captured
13. <Veh_No/> Vehicle's Number, captured from the Goods Shipment.
14. <Gc_Lr_No/> Lorry's Number, captured from the Goods Shipment.
15. <Trans_Goods_Cat>V-D</Trans_Goods_Cat> Transport Goods Category, this one is generated based on the VAT Commodity Code of the product
16. <Doc_type>INV</Doc_type> Type of document
17. <Comm_Code>99.99</Comm_Code> VAT Commodity Code of the product.
18. <State_Cat>I</State_Cat> State Category("I" if it is Inter-State or "O" if it is Out of state).