What
is Tax
Compulsory
contribution to govt revenue,levied by the government on income and business
profits, or added to the cost of some goods,services and transactions.
Why Tax
Tax
is collected because the government needs to pay for all the services it
provides the people of the country. It does that by charging people and
business tax on the income that they earn each year.
How
Tax is determined
Tax is determined
based on Tax Type.There are different
type of Taxes available.Like :-
- Sales Tax
- Value Added
Tax(VAT)
- Province Sales
Tax(PST)
- Global Sales
Tax (GST)
- Harmonized Sales
Tax(HST)
- Environmental Tax
- Purchase Tax
- Use Tax
- Offset Tax
- Differed Tax
How it is handled
in Oracle: Tax engine in Oracle calculates the Tax for a given
Transaction.However Oracle Customer can also integrate with third
parties to determine the Tax if the calculation
and Maintenance of Tax rates becomes complex.Third parties
can be Vertex ,Sabrix and Taxware
Tax
in Oracle 11i VS R12 :
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