Defining TCS Regime

Regime is used define rules applicable to all taxes assigned to it. You need to
complete this setup step before you move ahead with other setups.
Setups made for a regime are applicable to all transactions created for the
organizations assigned to it. Information defined here is generic unless you assign
different properties at the organization level.

Regime Tax Type

Value added Tax VAT

Tax Collected at source Tax Collected at source,Cess,Surchage

Service Tax Service Tax,Service tax Education Cess,Service Tax SH

Education Cess

Tax Regime
Tax Regime is the level at which similar taxes governed by common tax rules or laws are
grouped together.
In our exercise, we will setup a Tax Regime for US Location Based Tax.
Other Examples for different Tax Regimes can be….
1) Excise Tax Regime in India
2) VAT Regime in UK

Taxes
A classification of a charge imposed by a government through a fiscal or tax authority.

Tax Rates
The rate specified for a tax status for a period of time. Tax rate is generally expressed in terms of
percentage. In EBTax we can also express in terms of quantity. There can be multiple tax rates
under a tax status but at least one has to be specified as a default rate.

Regime
Applicability
• Dettermiine where tthe ttransacttiion iis deemed tto ttake pllace
•• Dettermiine Applliicablle Tax Regiimes
Tax Applicability
Dettermiine Candiidatte Taxes
• Dettermiine Pllace off Supplly And Tax Regiisttrattiion
• Dettermiine Applliicablle Taxes & Juriisdiicttiions
Tax
Status
Dettermiine Tax Sttattus ffor each applliicablle Tax

Tax Rate
Dettermiine Tax Ratte
• Evalluatte Exempttiions and Excepttiions

Taxable Basis
Dettermiine Taxablle Basiis ((normalllly lliine amountt)

Tax
Calculation

Callcullatte Tax ((normalllly = lliine amountt x ratte)

Setup Configuration Owner Tax Options

The tax regimes that you create identify the taxes and the set of regulations that make up each tax
requirement. Configuration options identify the relationships between parties and tax regimes to
reflect the tax requirements of each party.
Use configuration options to associate legal entities and operating units with their applicable tax
regimes. The association between a party and a tax regime includes these definitions:
Configuration for Taxes and Rules - The setup that the party uses for taxes, tax statuses, tax
rates, tax recovery rates, and tax rules.