ANNEX-H

What is Annex-H

In Sales tax return Annexure H is a summary of stock (i.e. details of opening, closing stock, stock sold/consumed etc.). This annexure is mandatory for refund claimants and they may submit this statement within 120 days from due date of return filing of particular tax period

The Genesis

On August 7, 2019, KTBA announced under section Sales Tax Rules, 2006 vide SRO no. 918(I)/2019, Manufacturers cum exporters to submit their stock and consumptions on their input (Annex. A) along with Sales tax returns in justification of their claimable refund amount. despite they decreed in Aug-2019 they bound the stakeholders to submit their stocks position since July-2019. This wasn't less than a challenge, there we had to prepare a statement of Hs code-wise inventory as well as match the consumption amount to our submitted refund amount of July-2019.

• 5281-Trims-Import-13
• 3290-Fabric-Local-17

• 13%
• 17%

• Import
• Local

• Trims
• Fabric

• 5281
• 3290

The solution is structured on a four-element key on which the data groups at all stages. so there is might need to set up things in the future.

Structured on a four element key

S.Tax rate

Origin

Catergory

HS CODE

Opening Stocks

The Predefined

New Hs Code Opening Form

The Setup

New Category Opening Form

The Setup

Steps to Solution

Tagging data from Payables

step 1

Define material consumptions

step 4

Reconciliation of data

step 3

Manual transactions & Adustments

step 2

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step 1

Step 1

1. Tagged the purchase invoices from EBS. (as much as we can find).

Step 2

2. Rest of purchase transactions have to entered manually by given form.

PURCHASES

ANNEXURE A

Step 3

Step 4

4. Open Material Consumption Form and put the consumption figuresfor all the three stages.

• Raw Material = Issuances to Floor
• Work in Process = Cost transferred to Finished Goods
• Finished goods = Cost of goods Sold

Material Consumption input form

• The query calculates the percentile of consumption amount on the available use-value at each stage and puts a calculated consumption value in front of each item.

Interpretation of Proration Process

• Finished Goods Opening + COGM = Available for use - COGS

Finished goods Stocks

• Work in Process Opening + Issuance = Available for use - COGM

Finished goods

Work in Process Stocks

20%

• Raw Material Opening + All Purchases = Available for use - Issuance

Raw Material Stocks

Work in Process

50%

Raw Material

30%

STOCKS

How the solution works?

METHODOLOGY

Reports are Available in System

After this integration, our all imported material will reflect the same consumptions and stocks as shown in the EFS Stocks Reports. Further, we have already taken provision for OC-wise consumption in the created module to connect with the OC-wise WIP & FG Consumptions later on

INTEGRATION WITH EFS (BONDED WAREHOUSE) INVENTORY ORG

Raw Material purchased under the GD's other than EFS now onwards will not take also in existing consumption mechanism, and will be taken directly from the source where it reflects onto the Exports invoices under SRO 492.

Raw Material purchased under the GD's marked as EFS now onwards will not take in existing consumption mechanism, and will be taken directly from the source where it reflects onto the Exports invoices.

Thanks!