Microsoft Dynamics Axapta Technical,Functional Coverage

  Customs Duty – Customs Duty is paid on your exports\imports. à Tax Components –  a) Basic Customs Duty (BCD b) Counter Availing Duty (CVD) c) PECess on BCD d) SHECess on BCD e) PECess on CVD (on BCD+ CVD+ PECess + SHECe f) SHECess on CVD (on BCD+ CVD+ PECess + SHECess)                     à Tax Credit available on CVD, PECess on BCD and SHECess on BCD. Setoff available on a) CVD – Basic Excise Duty b) PECess on BCD – PECess on Excise c) SHECess on BCD – SHECess on Excise à Calculation of assessable value: a)   When it is CIF consignment: Total Assessable Value = CIF (Cost +  Insurance + Freight) + 1% landing cost      b) When it is FOB Consignment:  Total Assessable Value = C (Cost) + 1% landing cost

  Service Tax - Service tax is a tax on Services. à 15 alphanumeric service tax registration no. is PAN based. à Tax Components – a) Service Tax – 10.3 %                                        b) PECess – 2%                                          c) SHECess – 1% à Returns are to be submitted on a monthly basis. Accounting is done only on Cash Basis and credit is also availed if you have done cash payment of your taxes. Service Tax can be setoff against the Excise Tax.

Excise Duty à Components of Excise –  a) Excise, b) Primary Education Cess (PCess), c) Secondary & Higher Secondary Education Cess (SHECess) à A registered Excise manufacturer\producer gets a 15 digit alphanumeric ECC no. which is PAN based. There is an excise tariff code maintained for different purchase \ sale items with their specific rates.Tax Credit is available on all Excise duty, Pcess and SHECess. à Legal & Statutory Compliance – Separate registers are to be maintained which are subject to audit– 1) Manufacturing – RG23A (Raw materials \Consumables\ Packing Material) RG23C (Capital Goods \ Tools \ Spares) RG1 – Daily Stock Register (Finished Goods produced) 2) Trading – RG23D (Purchase, Sales) 3)      Sub Contract – 57F4

1)     CST – CST is a tax on sale/ purchase of goods. Credit on Sales Tax is not available. à Tax on purchases is added to the inventory. Also any incidental charges of purchases like freight, clearing & forwarding charges etc are to be added to the inventory. à Components of CST – a) CST à Rates of CST differ from forms to forms like Form C, Form F , Form H , Form E1. Form C is issued when – Goods are purchased\sold outside state in manufacturing, Mining etc. Rate is 2 %. Form F is issued when – There is a stock transfer between two units \ warehouses. Rate is 0% Form H is issue when – There is a Merchant Export i.e. when goods are given to a merchant for export sales purpose. Rate is 0%.

VAT – VAT is the Local Sales Tax. It is a tax on final consumption of goods. à Credit on VAT paid – A manufacturer is entitled to get tax credit on the taxes paid by him on the inputs purchased by him within the state.  Whereas a dealer is entitled to get tax credit on the taxes paid by him on the purchases of the items for resale.  à A registered Manufacturer or a Dealer gets an 11 digit TIN no.(Tax Identification Number) . Those who don’t have TIN are called Unregistered Dealers. VAT returns are to be submitted in particular Sales Tax Authorities (STA’s) monthly. à Components of VAT – a) VAT, b) Additional VAT (ADVAT)  

Direct Taxes a) TDS b) TCS  Indirect Taxes     a) VAT     b) CST     c) Service Tax      d) Excise      e) Customs    

Tax Authorities : 1)       VAT – Central Sales Tax Authority 2)       Central Sales Tax (CST) - Central Sales Tax Authority 3)       Excise –   Central Board of Excise & Customs 4)       Customs Duty – Central Board of Excise & Customs 5)       Service Tax – Service Tax Authority