Explain rate of TDS

Please explain rate of TDS?

Vincent & Tinku
if any of u can send it to me would be great

Similar Messages

  • Separate rates of TDS for the same vendor

    Dear experts,
    We need urgent help for the folloing scenario:
    for a particular vendor, TDS has already been  deducted @10% till now. Now the vendor has got exemption (upto Rs.40000 TDS to be deducted @1%). Above Rs.40000, the rate will be the same i.e 10%.
    Please let us know, how to calculate this thru the system.
    Thanks in adv.
    Vijaya

    Hi,
    You can try out this option.
    Create a new witholding tax code.
    Tick the formula option.
    Now goto "define formulas for EWT"
    here for the tax type and tax code give as below:
    tobase amt   wthtax  reduce base amt
    40000            1%
    999999999     actual percentage
    Once you assign this tax type and tax code system will calculate tax at 1% upto 40000 base amt and more than 40k at the actual rate.
    Hope this is clear.
    Pls assign points if this was useful.
    Thanks,
    Vamsi

  • Tds rates change_ vendor updation

    Hi All
    The new rates for TDS has came in effect from 01.10.2009. I have created the required tax codes.
    here in our company we are using a different set of tax for basic tax then surcharge and then education cess and finaly l higher education cess.
    My problem isthat  I want to know how the withholding tax changes will be uploaded to vendors at mass level..
    Our vendors are alteast 1000 in no. which needs to be changed?
    Is the change to be taken manually or through LSMw or through BDC.
    Kindly help
    Rama

    Hi
    In my case, the new WHT type/code configuration is not live yet. So invoices/payments are using the old TDS rate.
    With respect to executing RFWT0010, I have the following issue:
    1) Vendor invoice posted on 05th Oct with old tax rate.
    The same has been paid and cleared on 15th Oct.
    Now when i execute RFWT0010 (with Doc. adjustment for relevant withholding tax types by 31.10.2009), the report does NOT select this invoice.
    I feel that the invoice should be selected, so that the increase/decrease in the TDS rate is accounted with offset going to vendor.
    This will ensure that I remit the correct TDS amount to the govt.
    2) Downpayment made to vendor on 10th Oct with old TDS rate - still open.
    This document is NOT being selected by the report RFWT0010.
    Hence WITH_ITEM table stores the old TDS amount.
    On executing J1INCHLN, the system picks the old TDS rate for remittance!
    Why does RFWT0010 exclude Cleared invoices and open downpayments?
    Thanks
    Gayathri

  • Lower Rate TDS upto certain limit

    I have one vendor who is applicable lower rate of TDS upto certain limit, but after certain limit system have to charge normal rate of TDS, is it possible to track and post such type of transaction in SAP?

    HI,
    It is possible with help of below config.
    Accumultion + Formula's
    please create separate tax type and tax code for this particular vendor.
    tax type
    accumulation , per year start month 4
    tax code
    check box " form w/tax"
    Define the formula's for withholding tax.
    upto
    50000                     5%
    9999999999999   10 %
    above is very specific to one vendor.
    Regards
    Madhu M

  • Cess rate maintenance for tds

    Hi all,
    We are using ecc 6.0.When tried to update cess rate for TDS in the table J_1IEWT_ECESS1 i am getting error message as follow
       "Create data processing function module".
    Regards,
    guru.

    Hi,
    At the time of initial installation SAP would make EUR as base currency, so any new company code you create needs to have an exchange rate defined to the base currency EUR.
    In your case you can define exchange rate to EUR and process PO, as per my knowledge there will not be any impact of this.
    Thanks,
    Ramesh.

  • TDS on Advance payment

    TDS deducted on advance get reversed when we clear advance with invoive. but how the system should work in case there is a change in the rates of tds deducted between the two. For example, Advance made in march for Rs 10000, tds deducted @ 10 % 1000.
    Now Invoice come in April for 30000/-, rated for TDS got changed (by budget) from either to 15% or 5%. We have made the approipriate tax codes and assigned them to the vendor master. But at the time of invoice processing TDS  is deducted on whole 30000 @ either 15% or 5%.
    Invoice                    15 %                 5%
    TDS                     4500                   1500
    F-54, Clearing of advance agt. Invoice, TDS will be reversed           1000                                         1000
    Net TDS             3500                                         500
    This is how system respond.
    However, what should happen functionally is
    Advance posting                                                                        1000                                         1000
    Invoice  [ 30000-10000] 20000                                                     3000                                         1000
    Total should be                                                                          4000                                         2000
    I have checked JV, etc. but nothing is giving appropriate answer, Pl suggest on that.

    Hi
    It probably depends on when the service is rendered. Was it rendered last year or after the TDS rate change?. Depending on that, TDS should be calculated. However it is reasonable to assume that service is rendered upon submission of Invoice. In that case, what the system does is correct. ie using the new tax rate of 15% or 5%, as per your example
    Jayaram

  • TDS at posting

    hi friends,
    please explain me how tds deducted at the time of vendor's advance payment and at the time of invoice
    for exp. at the time of advance we deduct tds for amount for Rs. 50000/- at the time of invice i want to make tds for Rs. 90000/-
    how we calculated  or split tds for those amounts.
    thanks in advance
    MJA

    If the doubt is relating to SAP fuctionality, pls follow this.
    If you want to deduct the tds at the time of advance payment to vendor, you have to use F-48 t code, provided vendor master has to be attached with the tds keys related to advance.
    While posting the invoice against the same advance, we are supposed to deduct the tds only on the balance amount. So change the base amout to the balance amount (i.e. invoice amt - advance paid) in the TDS tab of the vendor invoice (FB60 / MIRO), so the tds will be deducted only on the balance amount.
    Thanks,
    Ramnath.

  • TDS Upgrade Issue

    Hi All,
    While upgrading TDS am facing the issue as mentioned below.
    A/P Invoice WTAX
    Total Rate is not Right.
    But i Run as per SAP Query
    below the details
    Total Rate 2, TDS Rate 2, Surcharge Rate 10,Cess 2, Hsc 1
    if any one have update query for the same send it to me.
    OR update me the way to calculate Total Rate??
    Regards
    Anish
    Edited by: Anishsamvel A on Nov 22, 2011 9:38 AM

    Hi,
    Then you need to concentrate on the AP Invoice Wtaxes and specifically the tax rate.
    Please check Page 18 of the TDS Upgrade Manual by doing F1 help on the TDS Utility Tool and check how the total rate calculation is mentioned and confirm whether you have performed the rate determination the same way otr not.
    Kind Regards,
    Jitin
    SAP Business One Forum Team

  • Cannot Change TDS Master

    Hi,
    We have CXS_TDS addon Version 4.9 installed on SAP Business One 2007.
    I need to change the Surcharge, Ecess and HeCess % in the TDS Master. On attempting to change the same via Adminitration->Setup->Financials->CSX_TDS->TDS MASTER, I get the error, "Can not be Changed. Entry involved in Transaction"
    How can I change the TDS Master so that the new effective rates of TDS be incorported into the Master?
    Thanks,
    Manish

    Hi,
    Thanks,
    True, that we can create a TDS MASTER ROW for the new combination of the Tax Rate and Surcharges. However it has one drawback: We have to manually update the Business Partner Masters for the default WTAX Codes allowed.
    With a large number of Business Partners having WTAX Liable, it is a tedious process.
    Regards,
    Manish

  • Cess for TDS

    Hi,
    we have not sofar maintained cess rate  for TDS.
    As we use combined withholding tax code  Where to maintain  cess rate ?
    if it is to be maintained in J_1IEWT_ECESS1 i am not  able  maintain  any  value there i am getting following error
    "Create data processing function module"
    i give full points if i find the answer is useful
    guru
    Edited by: kumaraguru v on Jun 25, 2008 7:47 AM

    Hii
    for cess in TDS
    u have to maintain in same procedure,,, u need to first create the tax codes and tax type.. and than u need to define the formula as such what percentage of basic should be deducted the cess.
    all this settings u can do under extended withholding tax configuration and settings..
    For example u need to create cess tax code for each section that is applicaple...
    define formula say
    for example 194 I cess is charged 2% on basic..
    and than u need to assign this tax code to the vendor master data.. so when u process invoive or payment it will deduct...
    hope it helps u
    reward points
    sejal

  • Income tax issue without PAN no.

    Hi Expert
    If an employee having annual compensation INR 1.5 L than he/she will not be come under tax and in this case there is no need maintain the PAN no. in IT 185.
    My question is that according to SAP if an employee dont have PAN no. because of non availability of taxable income than 20% flat tax would be applicale for him/her or not?
    If yes pls guide me how to map that kind of scenario in sap.
    I am maintaining following notes.
    1568264
    1558465
    1572614
    1575366
    Pls treat this on high priority
    regards
    sachin

    Hi Sachin,
    Please go through the below circular:
    4.8 Section 206AA.
    4.8.1 Finance Act (No. 2) 2009, w.e.f. 01/04/2010 has inserted sec. 206AA in the Income-tax Act which makes furnishing of PAN by the employee compulsory in case of payments liable to TDS. If employee (deductee) fails to furnish his/her PAN to the deductor, the deductor shall make TDS at a higher of the following rates
    i. at the rate specified in the relevant provision of this Act; or
    ii. at the rate or rates in force; or
    iii. at the rate of twenty per cent.
    4.8.2 The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS . This section applies to any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVII-B of Income Tax Act. As chapter XVII-B covers all Payments including Salaries, Salaries are also covered by Section 206AA. In case of salaries there can be following situations
    a) Where the income of the employee computed for TDS u/s 192 is below taxable limit.
    b) Where the income of the employee computed for TDS u/s 192 is above taxable limit.
    In first situation, as the tax is not liable to be deducted no tax will be deducted. In the second case, if PAN is not furnished by the employee, the deductor will calculate the average rate of income-tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to deducted at the average rate. Education cess@ 2% and Secondary and Higher Education Cess @ 1 % is not to be deducted, in case the TDS is deducted at 20% u/s 206AA of the Income-tax Act.
    Regards
    Raviiii

  • Statutory Compliances (Indian Localization)

    Hi All,
    I've some doubts regarding the Statutory Compliances (Indian Localization) in SBO and I want to share with all you. Anyone who can plz help me.
    Service Tax
    ·         Is tracking invoice wise details and automatically calculating service tax payable and input credit with the provision of later adjustments possible ?
    ·         Does SAP B1 has predefined service tax categories with rates ?
    ·         is adjustment of input credit towards service tax payable possible ?
    ·         Is generation of reports in govt. prescribed formats possible (TR6 Challan, Input Credit Form, ST3 Report and ST3-A report) possible ?
    TDS
    ·         Does it have configurable TDS ledgers with options to specify the nature of payment and assessee type along with the rate of TDS ?
    ·         Is accounting for tax on partial/full payment of bills there ?
    ·         can we track each transaction from deduction to payment ?
    ·         does it have reports like Form 16A, TDS Challan, TDS computation and TDS payable ?
    ·         does it generate e-TDS in NSDL compliant format ?
    Excise for Traders
    ·         Excise Invoice ?
    ·         Tracking of excise duty from time of purchase to sales and ability to pass on excise duty
    ·         generation of quarterly returns in Form-2
    ·         Maintaining of Excise stock register RG 23D
    How is Excise for Manufacturer FBT, TCS & CST supported.
    Thanx in adv.
    Sibasish

    Hi
    Check the following links:
    [https://websmp101.sap-ag.de/~sapidb/011000358700006412562006E.pdf]
    [https://websmp101.sap-ag.de/~sapidb/011000358700006412602006E.wrf]
    [https://websmp101.sap-ag.de/~sapidb/011000358700005260902006E.pdf]
    [https://websmp101.sap-ag.de/~sapidb/011000358700005245982006E.wrf]
    All the above links require an SUser ID.

  • Different fiscal year for extended withholding tax

    Hi All SAP Gurus,
    I have configured the extended withholding tax as per the Indian requirement.But I am unable to meet the following to requirement as per client's need.Can anybody help me out please?
    1) My client is following Calander year ( Jan to Dec.) for Global ledger and it is assinged to Company code Global setting.For Local reporting in India, we are using Non-leading ledger L1 and fiscal year V3 ( April to march) is assignd to it.Now the problem comes when we perform the TDS process.
    a) We assigned the number range etc. for Internal challan number and TDS certificate.When we run J1INCHLN and J1INCERT, system is picking the number as per the calalnder year and not as per the April to march fiscal yearThis creates problem for the priod of next year (say jan to march 2010).Can anybody worked on such a senario. Please help me out.
    b) Second requirement is client wants lower rate deduction of TDS. I really don,t know much but I wonder that how we can set lower rate deducation in SAP as it is linked to the total Invoice amount and from and to period. I could not find anything in the vendor master where we can assign period as well as total turnover amount for lower dedcution.
    Please helpme out.
    Thnaks in advance.

    Hi, Ekta
    For lower deduction of Tax you will have to do the following Config:
    1.In SPRO Extended WTD --> Basic Settings --> Define Reasons for Exemption:
    Reason for exemption
    Indicator used to classify different types of exemption from liability
    to a particular withholding tax.
    Enter Text field such as Concessional Rate of Vendor Name
    2.Extended WTD --> Calculation --> India --> Settings for Annual Returns --> Assign Exemption Reasons to Withholding Tax Codes:
    Mantain Country, WTH Tax Type, WTH Tax, Exemption reason creatd above.
    3. In the vendor Master enter the following details:
    Exemtion Number - Certificate no. recd.from Income Tax dept.specifying reduced rate of TDS
    Exemption % : 25
    Exemption Reason: One created by you.
    Exemption From Date:
    Exe,ption To Date:
    This should resolve part of your issue.
    Thank You.

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  • Maintain two excemption certificate for a vendor

    Hi,
    How to maintain two excemption certificate for a vendor.
    I have a vendor, submitted lower TDS deduction certificate on april and again submitted another certificate in june with difference rate of TDS.
    how to configure.
    Regards
    Venkat

    One exemption per tax type-tax code combination can be maintained in the Vendor master.  So if your taxes are of different combinations, then it is possible.
    However, as per act, two exemptions are not available under the same section (For eg. you cant have two exemptions under section 196A).  But it is possible to have two certificates under different sections.  But even in this case, there are restrictions because at the end it is the income of the same Vendor.
    So, to answer your question, technically it is possible to have two exemptions, but as per law you are not permitted, unless the act specifically permits such a provision under some notification.
    Ravi.

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