Delivers functionality that will help Indian customers adapt to new education cess levy requirements
India — In a continued display of its commitment to localize enterprise solutions to Indian business requirements, SAP India today announced that it has delivered functionality that would enable its customers adhere to the changes in tax structure proposed in the Union Budget 2007.
The Union Budget 2007-2008 introduced a new levy called the “Secondary and Higher Education Cess” at 1% of the aggregate of duties of all taxes with an immediate impact on the Indirect Taxes. This cess had an impact on all Sales and Procurement transactions with effect from March 1, 2007 and is an integral part of the new tax structure. It was imperative for Indian Businesses to update their systems to ensure computation of this cess for all their despatches and receipts.
The cess was an important business issue for various SAP India customers and no despatch of goods or recovery of materials into the manufacturing units would have been possible if the new requirement was not incorporated into their existing enterprise solutions. SAP India worked closely with its Indian Customers and Partners to deliver functionality which helped them meet the new requirements right from the day it was enforced.
Speaking on this, Alan Sedghi, President & CEO, SAP Indian Subcontinent, said “Effectively supporting Indian customers with localized solutions tailor made for Indian business environments has always been a fundamental element of SAP’s Indian operations. This education cess functionality is another example of SAP delivering innovation without disruption to our Indian customers. We were the first enterprise solutions provider to help our customers adapt to VAT requirements in India. The immediate delivery of such localization has helped our customers keep their core systems stable while enabling them to adopt ongoing innovation with minimal disruption. SAP will continue to work closely with industry experts and partners in India to deliver solutions that match the Indian regulatory environment.”
A number of customers including Brakes India are already reaping the benefits of this update. Speaking on this, Mr. Madhusudhan, GM-IT Projects, Brakes India, said, “SAP has always given us a dependable, trusted IT infrastructure and innovative solutions that fit our industry’s requirements – while helping us better align with Indian government and tax regulations. In the brake manufacturing auto component industry, faster time to market and Just-in-Time delivery is a key factor for success. New regulations have to be quickly reflected in our business transactions and adapting to this new education cess quickly was a key requirement. SAP India pro-actively worked with us and delivered a quick update to this requirement and we have adapted to the new tax structure right from the first day of its enforcement’.