Oracle Releases VAT Localization Patches For Clients
With just one more day to go (April 1 deadline), enterprises in India are leaving no stone unturned in their efforts to be VAT compliant. The IT departments of enterprises are busy incorporating necessary parameter changes in their operational applications like ERP, CRM, SCM, etc.
Following the recent release of technical notes by SAP for VAT compliance for their customers, one of its fiercest competitors, Oracle, too has now followed suit by releasing what it calls ‘patches’ for its customers running Oracle Apps or the Oracle E-business suite.
Developed by the India localization team, the software can be downloaded by Oracle’s India customers to comply with the new VAT regulations of the government that will come into effect from April 1 2005.
The scene at Kolkata based Eveready Industries is one of confusion in this regard. IT head, Arup Chaudhury says, “Since Oracle released the necessary patches related to VAT, we downloaded them from the website and applied them in our systems. Along with the patches they have also provided the user manuals which were handy in terms of execution. In addition, a core team of our enterprise has developed a training manual, which are being sent to all our locations to educate the employees regarding VAT.”
Elaborating on the patches, Murali Subramanian, vice president-ERP applications development, Oracle India Private Limited, said, “Through the patches that we have released our customers will be able to take care of their liabilities and credit settlement and reimbursement processes. With the VAT enforcement companies stand to gain at times (for instance purchases at a certain rate, even if lying in the inventory enables an enterprise to vie for credit).”
More than the localization effort, what worries Chaudhury at the moment is the utter confusion relating to VAT regulations. He says, “As of now there is no clear cut guidelines from the government in terms of what types of documents or registers need to be maintained for future audit for VAT compliance. We are also not sure how to avail of benefits as prescribed through this new tax structure.”
But Rajendra Erande, corporate advisor, IT, Thermax India (Oracle E-business suite user) does not subscribe to this confusion. According to him, “The VAT localization is not that complex an affair as it is made out to be. Our inhouse team has been smoothly carrying out the incorporation of necessary changes. In fact with VAT, the process is much easier as tax structure is almost uniformed.”