Chapter 2: Oracle Fusion Tax Implementation
 |
| Oracle Fusion Tax Implementation |
Oracle Fusion Tax Implementation Series
2 Types of Taxes in Oracle Fusion
Overview of Transaction Tax:
A tax, that you pay when you buy or sell something in any
country that is called the Transaction Tax. As per the Country rule regulation,
if we are doing some businesses in that country either doing some sell or
purchase something, then we must pay some amount of tax to the country as per
the transaction amount and that is called the transaction tax. The amount of Transaction
tax on Bill Payments is usually a fixed percentage. Every country has setup
their own rates for Transaction Tax. Transaction Tax may vary country to
country. Even for Country, there are multiple Transaction tax rates/percentage
as pee the Goods and service category.
Overview of WithHolding Tax:
A withholding tax , is an income tax to
be paid to the government by the payer of the income rather than by the
recipient of the income. The tax is thus withheld or deducted from the income
due to the recipient. In most jurisdictions, withholding tax applies to employment income.
Many jurisdictions also require withholding tax on the payments of Suppliers
Invoice Bill’s. In most jurisdictions, there are additional withholding tax
obligations if the recipient of the income is resident in a different
jurisdiction, and in those circumstances withholding tax sometimes applies
to royalties, rent or
even the sale of real estate.
Typically, the withholding tax is treated as a payment on
account of the recipient's final tax liability, when the withholding is made in
advance. It may be refunded if it is determined, when a tax return is
filed, that the recipient's tax liability to the government which received the
withholding tax is less than the tax withheld, or additional tax may be due if
it is determined that the recipient's tax liability is more than the
withholding tax. In some cases, the withholding tax is treated as discharging
the recipient's tax liability, and no tax return or additional tax is required.
Such withholding is known as final withholding.
The amount of withholding tax on income payments other than
employment income is usually a fixed percentage.
|
| Oracle Fusion Tax Implementation |
Complete Introduction of India GST Transaction Tax
Unlike earlier when there were multiple taxes such as
Central Excise, Service Tax and State VAT etc., under GST, there is just one
tax. GST is categorized into CGST, SGST or IGST depending on whether the
transaction is Intra-State or Inter-State.
To determine whether Central Goods & Services Tax
(CGST), State Goods & Services Tax (SGST) or Integrated Goods &
Services Tax (IGST) will be applicable in a taxable transaction, it is
important to first know if the transaction is an Intra State or an Inter-State
supply.
0 comments:
Post a Comment