Extedn wth -taxes

Experts:-
In extended wtith holding taxes comes one :- point i.e
1.Define extended withholding taxes types for invoice posting....
2.Define extended withholding taxes type for invoice for payment making.
My doubt and interivwer asking what is the need both of them, I am say some thing related aswer, but he is not satisfied, plz ur suggestion about this one...

Hi,
As per the Income Taxt Act of 1961 in India, it is mandatory to deduct tax for the advances made to the vendor.
So it is required to deduct at the time of invoice or at the time of Advance(payment) whichever happening first.
You will be deducting tax at the time of invoice even for the tax deducted for advance. then you will clear(Downpayment Clearing) it
System will make adjustment entry
Assign points if useful
Sunoj.

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Witholding Tax calculation while payment and advance

Dear experts,
I have few questions as below. It would be great if you can help me out in this :
In vendor master I have two WTH tax codes for invoice and payment and marked as liable.
Incase of invoice (FB60) posting system is calcu;ating correctly and posting, but while posting no popup for to rectify the WTX code also no base amount is populating in WTH tax tab of invoice posting. Is this correct way??
While making payment for the same invoice through F-53, system is again calculating on same open item and no popup, until I go to WTH tax tab and delete the tax amount. What is lacking in my customising of WTH tax code (payment type), to restrict WTH tax calcutaing twice ??
While making advance payment by F-48, system not calculating WTX tax and showing tax code is mandatory, even though tax code (V0-tax exempt) entered, no WTH tax calculation happening. I have checked all Field status of document type and recon account, nothing is mandatory. I dint know why?? Please help in this regard.
Thanks in advance.
Regards
Abhi

Hi madhu
Thanks for explaining the process it works.
Regarding the error I was facing earlier to enter the tax code in F-48 for the tax category was marked as ' * ' in the advance reconciliation GL. I have removed them and now the error is not coming.
But now for the same or advance payment with F-48, I am not able post the document, though the payment WTX code is showing but not calculating the amount for the same.
The error is
"Withholding tax amount exceeds total bank line item amounts."
Message no. 7Q320
How to post it. Please help.
Regards
Abhi

Witholding tax at the time of Invoice, payment and advance

Dear experts,
I have few questions as below. It would be great if you can help me out in this :
In vendor master I have two WTH tax codes for invoice and payment and marked as liable.
Incase of invoice (FB60) posting system is calcu;ating correctly and posting, but while posting no popup for to rectify the WTX code also no base amount is populating in WTH tax tab of invoice posting. Is this correct way??
While making payment for the same invoice through F-53, system is again calculating on same open item and no popup, until I go to WTH tax tab and delete the tax amount. What is lacking in my customising of WTH tax code (payment type), to restrict WTH tax calcutaing twice ??
While making advance payment by F-48, system not calculating WTX tax and showing tax code is mandatory, even though tax code (V0-tax exempt) entered, no WTH tax calculation happening. I have checked all Field status of document type and recon account, nothing is mandatory. I dint know why?? Please help in this regard.
Thanks in advance.
Regards
Abhi

Hi madhu
Thanks for explaining the process it works.
Regarding the error I was facing earlier to enter the tax code in F-48 for the tax category was marked as ' * ' in the advance reconciliation GL. I have removed them and now the error is not coming.
But now for the same or advance payment with F-48, I am not able post the document, though the payment WTX code is showing but not calculating the amount for the same.
The error is
"Withholding tax amount exceeds total bank line item amounts."
Message no. 7Q320
How to post it. Please help.
Regards
Abhi

Withholding tax and Gross amount determination

Dear all
First of all, I would like to underline that before to post in this forum I have read all the documentation (official and not official) related to the Withholding Tax configuration in SAP, but in the end I have some doubts and so I kindly ask you cooperation to better understand the logical of the system.
In our country (ITLAY) the withholding tax (WTH tax) must be withheld at the payment invoice to the vendor, so our system should automatically calculate and posts the amount to the right tax account; my question is: which setting we have to use in order to have the right calculation of the base amount?
When you enter the invoice, the system determines the base amount for withholding tax and stores it in the document (INVOICE ENTRY SIDE). You can also enter the base amount directly. When the invoice is paid, the tax amount is calculated from the base amount and your specifications for the tax code. If the tax amount is to be paid to the tax authorities, the system automatically posts the amount to the tax account. The system reduces the payment amount to the vendor by the withholding tax to be paid (INVOICE PAYMENT SIDE).
At the Invoice Entry SIDE when entering documents, if the withholding tax is to be calculated at the time payment is made, only the base amount is calculated when the invoice is posted, this is what we are looking for, so my question is:
How does the system calculate the base amount of WTH tax?
Maybe an example could be better to explain our request:
Invoice received from a Tax adviser that is liable to Withholding tax.
1.     Invoice Total Amount                                                  1372
2.     Fees (Tax Base amount and WHT Tax base amount)                         1000
3.     Specific Italian Contribution     (Tax Base amount and NO WHT Tax base amount)          20
4.     Social Security Contribution     (Tax Base amount and WHT Tax base amount)          40
5.     Expenses reimbursement (NO Tax Base amount and NO WHT Tax base amount)          100
6.     VAT Basis (point 2 + 3 + 4)                                             1060
7.     VAT Amount (20%)                                                  212
8.     Withholding Tax Basis (point 2 + 4)                                        1040
9.     Withholding Tax Amount (20%)                                        208
Is it possible to manage this flow under the Invoice Verification FLOW? It means:
1.     Issue a Purchase Order to the TAX consultant
2.     post the GR for services
3.     post the IR, in this step the System should calculate the WTH base amount 1040
4.     post the payment and the WTH TAX
Accounting flow is:
Point 2) post the GR for services
         Credit      Balance Sheet GRIR services account                                   -1040
         Debit      P&L Account for services                                             1040
Point 3) post the IR
        Credit      Vendor Account                                                   -1372
        Debit      Balance Sheet GRIR services account                                    1040
                       WTH TAX BASE AMOUNT
        Debit      P&L Account Expenses reimbursement                                   100
                        NO TAX BASE AMOUNT AND NO WHT TAX BASE AMOUNT
        Debit      P&L Account Specific Italian Contribution                                   20
                        TAX BASE AMOUNT AND NO WHT TAX BASE AMOUNT
       Debit     Balance Sheet Tax Account                                             212
Point 4) post payment to the vendor
      Debit      Vendor Account                                                   1372
      Credit      Balance Sheet WTH TAX ACCOUNT                                   -208
     Credit      Balance Sheet Bank Account                                             -1164
I have just one doubt: for the calculation of the WTH TAX base amount the system consider the amount/value of the GR, so in this case 1040 or the system will take in consideration all the item for the VAT TAX BASE AMOUNT, so in this case 1060?
I am asking this because I found on the SAP documentation, when it explain the Withholding Tax Type Calculation Setting:
Gross amount - The withholding tax base amount equals the line item gross amount.
Tax amount - The withholding tax base amount equals the tax amount of the line item.
I know my request is not so clear, and I have to apologize with you because it is very long, but please someone can help me
Regards
Marco

thanks for all folks

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.

Tax Query

What is difference between Tax Code and Withholding Tax code while preparing the IV?
Where are they configured in SAP?
How the entries are posted to GL account in SAP?

Hi,
Tax code is nothing Input and output tax codes,
at the time of procurment mm side they calculated input tax,
At the time of Sale out put tax calculated.
Like vat
Regarding WTh tax service parties like profesional pay and servese wth tax used this are the img activity so u need to configue in back end,
Posting at the time of entry end user select relevant tax code
ex f-43 at the time of invoice select relevent tax code and select calculate tax check box is there tax automatically calculated and posted to tax account.
If helpful assign points
Regards

WITHHOLDING TAXES ON PROVISION

Hi Gurus
I have configured 4 witholding tax codes (1 for basic, 1 for surcharge, 1 for HE cess & 1 for SHE cess).
When I'm using tcode J1INUT for calcuclating WTH tax on provisions, i have option to enter only 2 tax codes.
Now please guide me on how to proceed further
Regards
Ganesh

hi,
apply the sap notes 1015410 and 1096515.
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Issue during F110 for Vendor

Dear SAP Experts,
There is Vendor which is for WTH Tax. There is vendor posting of 1000 Cr and Dr XYX Account of 900 and Dr 100 of WTH Tax. Now when i go to FBL1N i see 900 as outstanding for Vendor but when i do F110 for the vendor i the proposal i see 1000 amount and when i double click it, the amount is 900.
Kindly advice.

Hi,
As per your entry if you see in FBL1N it will display vendor line items only so it is showing as 900.
While in F110 the system will take the invoice amount for display, but it pay only line item amount 900 thats why it is showing as 1000 but if you double click on it will show the actual vendor line item amount only.
BR,
Satya

Activating Extended WHT

Hi Experts
For a US based client we need to activate extended WHT functionality in 3 out of 5 company codes within the same country.
We would like to have inputs on the impact it will have, specially because of the fact that we are not activating it for all company codes.
At the same time please let us know what are the advantages for activating this for all company codes over few.
Thanks

Hello,
what, i can see the impact if one of the Vendor is common among the 5 company codes, then how you will handle the WTH tax for that vendor.
thanks

TDS Number range generation failure

Hi all,
We are using ECC 6 . when we are generating the TDS certificate than system prompting the message " Number range generation Failure" Message no. 8I166.
I have done all the configuration. last week we have already generated the certificate with 40000000 certificate no. but when I re test the same scenario this week than system prompt me this message.
and I checked the Tcode J1INCT certificate number range. where I found that in status there should be 400000000. because we have already generated the certificate. but status was 0.
please help me what could be the cause of this error.
Points will be assigned.
Regards to all.

Hi,
Go to the Following path and maintain the Number range:
SPRO- Financial Accounting - FA Global Setting - WTH - Extended - Posting - India - WTH Tax Certificate for Vendor & Customers -1) Maintain Number Groups 2) Assign Numer Groups.3)Mainatin Number Ranges.
Also goto SM30
Maintain the following :
J_1IEWT_CERT_N
J_1IEWTNUMGR_1
Hope its useful,
Thanks
Prasada

MSI-K8N Diamond Plus - which memory?

Hello,
I will soon buy the K8N Diamond PLus motherboard. For that motherboard, I have selected the following memory: Corsair 512 Mo DDR-SDRAM PC3200 CMX Cas-2. But I can not find if this is ok for this type of motherboard. Does someone knows something about that? ???
Thx in advance!

Marlysa,
I would suggest that you stay away from the corsair xms ram as i figured the sme thing when I built my system, that it,s Corsair and its the #1 selected ram and usualy the most compatible, But this is not the case with this motherboard it's very picky about hardware pretty much the same as DFI board's!!!
Of course the CORSAIR WEBSITE will tell you this they want youre money!!!!!! Their certainly not going to reccomend OCZ MEMMORY that's for sure!!!!!
Please reconsider youre decision as I myself have traveled down that road you about to take. Personaly I love Corsair ram and i certainly wont bash it, but get the OCZ5002048ELGEGXT-K it cost me $213.00 wth tax for 2 gigs instead of $160.00 with tax for the corasir xms 2- 512 sticks Believe me you will be thankful that you took my suggestion!!!!! with the new 1.20 BIOS at optimized default's it posts and configures itself automatically where as befor you would usealy have to configure it manually in bios to get it to post at 500mhz believe me this OCZ MEMORY ROCKS!!!!
Save youreself alot of this.... BUY IT!!!!!!
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With holding tax error FZ379-"Error in WHT certificate numbering"-Thailand

Hi,
We are receiving an error "FZ379 - Error in WHT certificate numbering" while posting an outgoing payment for a vendor in Thailnd.
Here is the business process we follwed:
1. Posted Down payment request on vendor.
2. Paid down payment through F110.
3. Cleared down payment using F-54 and created a credit in vendor.
4. Posted an invoice to vendor.
5. Ran F110 to pay the net amount to the vendor, No errors in payment proposal but when the payment run is carried out it got cancelled with error message FBZ79.
As an alternative, we posted a credit memo replacing the down payment credit and then F110, To our surprise the payment run completed successfully.
Does it make sense to anyboy? Is this issue applies to only Thailand.
Thanks,
Mano.

Hello Mano,
I would like to refer you to the following note :-
1090637 Thailand-Withholding tax certificate numbering, RFIDYYWT
which states :-
~~~~~
Solution
For release 470 onwards, certificate number generation at the time of
document posting is not supported by SAP. SAP recommends generating
certificate numbering at the time of reporting.
~~~~~
Can you kindly check the following customizing in IMG (Transaction
SPRO) :-
-> Financial Accounting
-> Financial Accouting Basic Settings
   -> Withholding Tax
    -> Extended Withholding Tax
     -> Calculation
      -> Withholding Tax Type
       -> Define Withholding Tax Type for Payment Posting
        -> Country Key TH
         -> Wth.t.type 11
Inside the customizing, there is a tab 'Control Data'. Please select the
checkbox 'No Cert. Numbering'. ie certificate number should not be
generated during payment. It should be generated when you run RFIDYYWT.
hope this helps
Ray
Edited by: Lakshmipathi on Jan 25, 2011 2:53 PM
It is enough if you provide the OSS note number. Dont copy paste the solution since legally it is not allowed

Company codes have different settings for withholding tax treatment

Hi
I got the below error message and its correct. But, I would like to know whether there is any work around to over come this error.
thnks
Sridevi
Message no. F5786
Diagnosis
You are entering a document containing at least one vendor or customer item and which has line items in several company codes. The extended withholding tax treatment has been set to active in one of these company codes, but not in one of the other company codes
System Response
You cannot enter this kind of document.
Procedure
Enter the transaction in two documents.
Hi
Can any one throw light on this?
Regards
Sridevi

Dear Madam,
Please activate WTH for another company for posting Inter company code Transactions.
If you are not posting INTER COMPANY Transactions
Just go to Document Posting ( any document Like ... FB60 )
Menu Bar>
Settings> Editing Options>
Click on Check box - Documents not cross - company code.
Just save and Go back and once exit and Reopen the document.
Next time you will not receive this message.
Thanking you
BRP

Extedn wth -taxes

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