Withholding Tax setup in Oracle Fusion
Hi friends, we are going to discuss about the Withholding Tax setup in Oracle Fusion. We will share the complete information and the detail steps to implement the withholding tax in oracle fusion. You can refer this blog to configure & Implement the taxation in Oracle Fusion. This is one of the best material in internet about oracle fusion taxes. This material is prepared by our Oracle Fusion professionals. This topic is very lengthy so we have divided into multiple posts. There are two types of taxes. Withholding and the transactional taxes. Withholding is the Income related taxes. We will guide you from beginning to implement the withholding tax in oracle fusion. In Oracle Fusion withholding tax setup is quite different as compared to oracle eps r12. Please find below the complete detail about Withholding Tax setup in Oracle Fusion.
Types of Taxes in Oracle Fusion
1.Withholding Tax in Oracle Fusion
2.Transactional Tax in Oracle Fusion
Step by Step to Implement the Withholding Tax in Oracle Fusion
Here below is the detail informations about the withholding tax setups in oracle fusion.
Step 1: Go to ‘Manage Tax Regime’ to create the Tax Regime for Withholding Tax.
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| Withholding Tax setup in Oracle Fusion |
Here below is the Tax Regime, where we need to create the Transaction Tax Regime for GST.
Please ensure, you have selected the Transaction Tax Option in the radio box.
Click on the ‘+’ icon to create the New Tax regime.
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| Withholding Tax setup in Oracle Fusion |
Creating Tax Regime for Withholding Tax
Here we are creating the Tax Regime for GST. We need to enter the Information’s very carefully.
Tax Regime Code: INDIA TDS1
Tax Regime Name; INDIA TDS1
Start Date: - The Date from which you want to start the Taxes. I would recommend using 3 to 4 years back date.
Regime Level: Country (As we have the same Tax Rules across the country so we will select the Country)
Country: India (We are implementing for India).
Tax Currency: INR.
Conversion Rate Type: Corporate (This is very Important, we have to select the right Conversion Rate Type).
Registration Number Controls and Defaults:
Validation Type: ORA_IN_PAN
Validation Level: Warning
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| Withholding Tax setup in Oracle Fusion |
Configuration Options:
In Configuration options, we need to select the BU’s for which we need to enable this Tax Regime.
Only these BU’s will have the access for this Tax Regime.
Party Name: ABC CORP (We need to select the BU Name which will access these regime tax rates).
Configuration for Taxes and Rules: Common configuration with party overrides.
Configuration for Product Exceptions: Party- specific configurations.
Effective Start Date: Same as the Start Date entered above in the Tax Regime
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| Withholding Tax setup in Oracle Fusion |
Creating Withholding Taxes Under Withholding Tax Regime
Types of Taxes under Withholding Tax Regime
1.INDIA_TDS_194C
2.INDIA_TDS_194H
3.INDIA_TDS_194I
4. INDIA_TDS_194J
5. INDIA_TDS_195
Step1: - Go to Manage Taxes task and will go to this below Page, as below. Click on the ‘+’ icon to create the New Taxes under the Withholding tax regime ‘’India TDS1’.
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| Withholding Tax setup in Oracle Fusion |
INDIA_TDS_194C
INDIA_TDS_194H
INDIA_TDS_194I
INDIA_TDS_194J
Creating 194C Section Withholding Tax in Withholding Tax Regime
Tax Regime Code: INDIA TDS1 (Need to select the Right Regime, we created in Last step)
Configuration Owner: ABC CORP (Need to Select the BU Name for which we want to use this Tax).
TAX: INDIA_TDS_194C (TAX Name we need to enter, can enter any name but should be logical).
TAX: INDIA_TDS_194C (TAX Name we need to enter, can enter any name but should be logical).
Start Date: Same Date as we entered in the Tax Regime.
Tax Information:
Geography Type: Country
Tax Currency: INR
Tax Precision: 0 (We don’t want the Tax in Decimal).
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| Withholding Tax setup in Oracle Fusion |
Control and Defaults:
Tax Point Basis : Invoice
Tax Inclusion Method: Standard noninclusive
Allow override and Entry of inclusive tax lines : Yes
Allow tac rounding overrise: Yes
Allow entry of Manual Tax Lines : Yes
Tax Exceptions and Exemptions:
Allow Tax Exceptions : Yes
Allow Tax Exemptions : Yes
Validation Type: ORA_IN_PAN
Validation Level: Warning
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| Withholding Tax setup in Oracle Fusion |
TAX Rule Defaults for Taxes:
Place of Supply : Ship to , use bill to if ship to is null.
Tax Applicability : Not Applicable.
Tax registration : Bill-from party.
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| Withholding Tax setup in Oracle Fusion |
Now We need to create the Tax Authorities as below.
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| Withholding Tax setup in Oracle Fusion |
We need to create the 'INCOME TAX AUTHORITY' supplier first and then assign this supplier as below under the Tax Authorities
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| Withholding Tax setup in Oracle Fusion |
We need to enable this Flag 'Enable for Transaction' for each taxes in tax header as below.
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| Withholding Tax setup in Oracle Fusion |
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| Withholding Tax setup in Oracle Fusion |
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Withholding Tax setup in Oracle FusionCreating 194H Section Withholding Tax in Withholding Tax RegimeTax Regime Code: INDIA TDS1 (Need to select the Right Regime, we created in Last step) Configuration Owner: ABC CORP (Need to Select the BU Name for which we want to use this Tax). TAX: INDIA_TDS_194H (TAX Name we need to enter, can enter any name but should be logical). TAX: INDIA_TDS_194H (TAX Name we need to enter, can enter any name but should be logical). Start Date: Same Date as we entered in the Tax Regime. Tax Information:Geography Type: Country Tax Currency: INR Tax Precision: 0 (We don’t want the Tax in Decimal). Control and Defaults:Tax Point Basis : Invoice Tax Inclusion Method: Standard noninclusive Allow override and Entry of inclusive tax lines : Yes Allow tax rounding override: Yes Allow entry of Manual Tax Lines : Yes Tax Exceptions and Exemptions:Allow Tax Exceptions : Yes Allow Tax Exemptions : Yes Validation Type: ORA_IN_PAN Validation Level: Warning
TAX Rule Defaults for Taxes:Place of Supply : Ship to , use bill to if ship to is null. Tax Applicability : Not Applicable. Tax registration : Bill-from party.
We need to create the 'INCOME TAX AUTHORITY' supplier first and then assign this supplier as below under the Tax Authorities
We need to enable this Flag 'Enable for Transaction' for each taxes in tax header as below.
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