8. Taxes

In OMNI Taxes are used in the following processes:

• Indirect Taxes - GST, VAT, CST, Service Tax, Excise, Import Duties:
  • These are used in the Vendor Offer for Material, Offer for Service, Purchase Order and Work Order.
• Direct Taxes - Income Tax and TDS
  • Income Tax is used in the Payroll process for calculation of an Employee's Income Tax Liabilities. (This is defined in detail in the Payroll section)
  • TDS - is the Deduction of Tax upon payment to a Vendor

Tax Type

The Tax Type determines which Taxes are used/applicable in which OMNI processes. The following Tax Types are pre-defined in OMNI:

When creating Tax Item a Tax Type must be chosen to define where the Tax Item is used. Tax Types cannot be changed and are fixed for an OMNI installation. The list of Tax Types are visible at:

Tax Group

A Tax Group is used to define the type of the Tax Item. Tax Groups are required for every Tax Item to ensure that they are displayed in the Tax Register Reports - that display the Tax amount paid for any Vendor Bill and the Tax Collected against any Client Bill.

Tax Groups can be changed or added as per the prevailing statutory requirement. Tax Groups can be viewed, added, changed in the same Menu Option as Tax Types.

Tax Master

The Tax Master is the list of Tax Items defined in OMNI that are used in the processes mentioned above. The Tax Master can be accessed through:

The List of Tax Items defined are:

The Ledger that the Tax Entries should be booked into should be one of the following types:

• Expense Ledger - if the Tax is a Tax paid to a Vendor (in a Bill) and is treated as an Expense
• Input Tax/Asset - if the Tax is a Tax paid to a Vendor (in a Bill) and is treated as an Asset as a Setoff will be obtained.
• Liability Ledger - if the Tax is a Tax collected from a Customer (in a Client Bill) and will be remitted to the Customer.

TDS

TDS of Tax Deduction at Source is applicable when a Vendor Payment is made. The list of TDS sections (i.e. rates and purpose for which the payment is being made) is defined in:

Dependind on Statutory changes new TDS sections (or updates) maybe applied.