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Fringe Benefit Tax Support : Fringe Benefit Tax was introduced in India as part of Budget 2005-2006, to tax specific expenses spent on employees by organizations, which are not treated as individual employee income. This is a federal tax and administered by the Indian Income Tax Department. Fringe Benefit Tax is a use tax, which needs to be assessed by the organization on specified expenses identified as Fringe benefits. The tax liability towards Fringe Benefit Tax must be paid to the government account every quarter as advance tax. Income tax regulations on Fringe benefit tax also warrant specified organizations to file their returns electronically. Oracle Payroll for India supports the computation of fringe benefit taxes. This new feature addresses the requirements for fringe benefits not covered by Oracle Payroll and enables computation, payment, tracking and statutory reporting of Fringe Benefit Taxes. Enhancements include: > The ability to define Fringe Benefit Tax as a new regime at the legal entity level > A new setup UI to capture the benefit types, the taxable basis, tax percentage,cess percentage and surcharge percentage. 2. Inclusive Tax Calculation for India There are many circumstances where the price listed on financial documents is inclusive of all duties and taxes. This means that the transaction price on documents such as purchase or sales orders is inclusive of all taxes applicable to the transaction.With this release, Oracle Financials for India provides support for inclusive tax calculations in Order to Cash and Procure to Pay cycles.Users will have the ability to define a tax as inclusive in the tax code definition and to attach the tax code to tax categories. For transactions having such tax codes, the tax amounts are calculated on inclusive basis and reflected on the respective transaction.This enables correct computing, tracking and accounting of inclusive taxes for financial and statutory reporting. 3. Tax Calculation Enhancements for Retroactive Pricing : In some industries, it is a common practice for buyers and suppliers to agree on an interim price for a new part while negotiations for a final price are still in progress. Purchase orders for the new part are placed and are invoiced and payments made based on this interim price. In many cases the final price resulting from the negotiation process, takes effect retroactively from an agreed upon date. The effect of this retroactive price change is that existing blanket releases for the item

need to be priced again and invoices need to be adjusted for price corrections. Retroactive Pricing functionality allows price revision events to be propagated from the blanket agreement to the downstream documents relating to that agreement such as releases or standard purchase orders. Such price modifications on purchasing documents have a direct impact on the taxes applicable to the transactions. With this release, the retroactive pricing process has been modified to recalculate India taxes on downstream transactions such as receipt accruals, credit memos, and price correction invoices. In addition, a new user interface is provided to allow users to claim credit for recoverable taxes that have undergone an upward revision. 4. Tax Calculation Support for Unmatched Payables Invoices : In this release, Oracle Financials for India supports tax calculation for unmatched payables invoices. A new form, Invoice Taxes Localized, is available to view / modify the Financials for India taxes on unmatched payables invoice. VAT/Sales tax can now be attached on invoices where item information is not critical. Users can also add nonrecoverable taxes of type Any other to unmatched invoices. This new non-recoverable tax type can be used to add other miscellaneous charges to the invoice.