Extended Withholding Tax (India)

While testing TDS calculation at the time of payment posting I am facing a problem.
TDS is not being calculated.
System is asking Tax Code of TAXINN tax procedure such as input tax, output tax etc.
I have done the settings of W/H type, code,recipient type, assigning type to co.code and finally assigning the tax type and tax code combinatin to the endor.
In accounnt determination also, I have chosen a bank account in which 'relevant to cash flow' field is marked.
So what checks are required for TDS calculation?
Thanks & Regards
Dhanashree

Hi
Go to FTXP and make the codes....see here what you are refering to is not extended withholding tax ..here you are refering to TDS. first make configuration settings for tax on sales and purchases.
Go to Financial accounting>financial accounting and global settings>AR/AP>tax on sales and purchases.
Check calculation procedure and then assign the same to the country.
Assign points.
Zia

Similar Messages

S_pl0_09000447- can i use this for Extended Withholding Tax

Dear Gurus,
In my compoany im using Extended Withholding Tax for India, and can i use the Report S_PL0_09000447 - Withholding tax report for the vendor.
Kindly Advice whether can i use this report for EWT or not.
if yes how to use it.
Regards
karthik

Hi,
On the analysis, the system expects an entry in the T059Q table with
code as XX.
The reason being in the extended withholding tax we use multiple
witholding tax codes and these entries are stored in the table
with_item. And in BSEG we populate the field withholding tax code i.e.
BSEG-QSSKZ with the value 'XX'. In classical withholding tax we used to
store the code directly which is not possible with Extended withholding
tax.
As the field BSEG-QSSKZ refers to the values in the table T059Q-QSSKZ
the entry 'XX" needed in this table for the corresponding country of the
company code to maintain the correct relationship and consistent
database information.
Hence for the statistical purpose and for the internal calculations we
need an entry in the table T059Q. Could you please maintain this code
i.e. 'XX' also in the table T059Q in a test system? Then retest your issue.
This should resolve your issue.
Kind Regards,
Vanessa.

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.

Configuration of Extended Withholding Tax

Dear Friends,
Please send me the document of configuration of Extended withholding tax for India.
Please treat this as urgent.
Thanks & Regards,
Reva.

Hai,
Kindly go through this link ...
http://help.sap.com/saphelp_erp2005vp/helpdata/en/1e/f4a18e11d811d4b5af006094b9ec21/frameset.htm
In this link.... under taxes... u will get the required info.
Raghav

Separate withholding tax account in non-extended withholding tax country?

We have one withholding tax GL account defined for our operating CoA, except for India (which has extended withholding tax configured). I now have a request from Italy to assign their withholding taxes to a different GL account, for ONE tax code and ONE vendor. Is this possible to set up, and if so, how?
Thank you!

Dear all,
You should create Your WT type and WT code to the IT country and then to link the WT type to the specific G/L account for Italy (that You created by FS02) by transaction OBWW. then You have to link WT type and code to Your vendor master data by FK02.
Remember also to define the WT type at Company code level with a validity period.
Please test.
I hope this helps You.
Thanks.
Mauri

Classic Withholding Tax and Extended Withholding Tax

Hi,
What is the difference between Classic Withholding Tax and Extended Withholding Tax.
Regards
RKG.

Hi
Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is reduced by the withholding tax amount.
In certain countries, such as Brazil, the Philippines, and Spain, withholding tax can or must be posted when the invoice is posted. This means that the amount receivable or payable is reduced by the withholding tax amount.
Extended withholding tax supports both concepts.
The key concept in extended withholding tax is the distinction between withholding tax type and withholding tax code. While withholding tax types represent basic calculation rules, specific features of these rules - in particular the percentage rate -
are represented by the withholding tax code. You can define any number of withholding tax codes for a given withholding tax type.
If a particular transaction requires more than one kind of withholding tax, this is covered in the SAP System by defining more than one withholding tax type.
When entering a line item, you can enter withholding tax data for each of these withholding tax types.
How To Configure Withholding Tax?
Steps for extended withholding tax :
1. Check withholding tax countries
2. Define Ex. Withholding tax types for invoice postings
3. Define Ex. Withholding tax codes
4. Formula for Ex. Withholding tax calculation
5. Assign Ex. Withholding tax types to Company code
6. Activate Ex. Withholding tax
8. Create a G/L a/C for Ex. Withholding tax
9. Define A/C for Ex. Withholding tax (DBWW)
10. Make changes in Vendor master (XK02)
11. Maintain Company Code Settings:
Path: IMG -> Logistic -> General -> Taxes on goods movement -> India -> Maintain company code settings
12. Activate country version for specific fiscal year position
Path: IMG -> FA -> -> **** -> Taxes on sales purchases -> Basic Setting -> India -> Activate country specific for fiscal year position
http://help.sap.com/saphelp_erp2005/helpdata/en/e5/0780914acd11d182b90000e829fbfe/content.htm
nagesh

Payment order are not defined for extended withholding tax

Hi Gurus,
Would you please help me with the message below. It appears on F110 when I try to pay a vendor open item with extended withholding tax:
Message FZ626 -Payment orders are not defined for extended withholding tax
In my company payment orders are created in F110 for accounts payable, as we use another ERP system (Baan) to perform the local accounts payments, and now I've just activated Extended withholding tax functionality With accumulation (necessary in Brazil) but I get this error.
Is it not possible to user payment order with extended withholding tax + accumulation? I find it hard to believe...
I've tried to unflag the payment order only for the payment method I'm using in FBZP t.code, but then no payment order were created but instead a payment document were posted with the withholding tax accumulation, but this is not the way we are working, and nothing is sent to Baan
any help is welcome

The payment method "Y" the option "payment order only" was marked?
For a withholding tax type with accumulation in a company code with extended withholding tax payment
methods that create only payment orders can´t be used. Payment orders can only be created only if there are
no tax types with accumulation involved in the paid items of the payment run.
The functionality extended withholding tax works fine for Brazil
however, you can´t use the payment order with this functionality.
Please, review your customizing for payment method 'Y" in transaction
FBZP.
Best regards,
Leonardo Vedovelli
FI Support Engineer
SAP Active Global Support

Migration from Withholding Tax ( Classic ) to Extended Withholding Tax

Dear All,
I am doing the Migration from Withholding Tax ( Classic ) to Extended Withholding Tax, I am getting the following error.
I made all the customization and done the necessary process flow steps.
Now I am doing the last transaction i.e. Migration Programme ( J1INMIG )
I am getting the following error. i.e.
Health Check not carried out or health check has reported errors....
Message no. 8I775
Diagnosis
Before migration of data is carried out, it is advisable to carry out the integrity of customizing in both SAP ECC and CIN.
It appears that either the health check is not carried out, in which case it can be run using transaction j1inhc, or the health check has reported errors.
Procedure
Run health check program if not already run.
Resolve the errors reported in customizing and re run the health check.
In case you do not wish to use health check tool, manually update the field 'STATUS'as 'X' for the company code.
So I checked in Health Check ( J1INHC ). Here All are showing the Green Status.
EXCEPT THE FOLLOWING IS IN YELLOW STATUS .
34            Invoice with Payment Type tax code created in classic cannot be executed after switching to EWT.
               These documents have to be processed before switching to EWT.
               SERIAL NO.     COMPANY   DOCUMENT NO.   POSTING DATE   FISCAL YEAR
               1              ITS       1900000022     09.12.2009     2009
               2              ITS       1900000027     09.12.2009     2009
               3              ITS       1900000023     09.12.2009     2009
               4              ITS       1900000021     09.12.2009     2009
               5              ITS       1900000020     09.12.2009     2009
               6              ITS       1900000019     09.12.2009     2009
               7              ITS       1900000018     09.12.2009     2009
               8              ITS       1900000016     09.12.2009     2009
               9              ITS       1900000024     09.12.2009     2009
               10             ITS       1900000025     09.12.2009     2009
               11             ITS       1900000015     08.12.2009     2009
I noticed that because the above documents are having the openitems and down payments. And If I clear the these documents it is becoming Green Status.
It means now my Health Check is correct, Because all are showing the Green status.
Now If I run the Migration Programme ( ( J1INMIG )
IT IS NOT EXECUTING. IT IS GIVING THE MESSAGE THAT NO DOCUMENTS FOUND.
Kindly advise I don't understand the above Migration programme execution and the error details.
Regards
Kumar

Hi All,
Nobody has not answered my issue.
Otherwise anybody can explain in detail about " MIGRATION PROGRAMME " ( J1INMIG ).
I want details about this last T.Code only i.e. J1INMIG and remaining all the necessary steps I completed.
An early reply will be highly appriciated.
Regards,
K. S. Sai Kumar

Extended Withholding Tax error

I have done EWT configuration. But while posting the entry, TDS is not deducted and no posting to TDS accounts are made.
I have assigned GL accounts & done the settings in sequence given in SAP nodes
What wrong setting i would have done ?

Hi,
1. Please check withholding tax type is assigned to the company code, IMG: Withholding tax>Extended withholding Tax>Company Code>Assigned Withholding Tax Types to Company Code.
Note: also check the here the proper dates u201Cw/tax obligated frmu201D and u201COblig.to w/tax untilu201D e.g. 01.01.1900 and 31.12.9999.
2. Go to OBWW also check the GL is assigned or not.
3. Also check the field status of recon. account & alternative recon account assigned for special GL for down payment, fields e.g withholding tax code and withholding tax amounts etc. should not be suppressed.
Thanks
Javed

Extended withholding tax - US Error 7Q 301 updating withholding tax

Cannot get the system to allow me to change the withholding tax information on the accounting documents. Extended withholding tax has been configured. The fields in the line items have been opened to allow changes to the withholding tax data, both for K and S. The venodor has been updated for the withholding tax type and code. Program RFWT0010 does not update any records. The funny thing is it works in the sandbox but not the regular testing dev client. I have compared config and it is the same in both places. Any ideas?
Thank you.

Hi,
Please refer to note 363650, you will see the following information;
C) Change Rules for classical and extended withholding tax If the withholding tax base amount should be changed after a
docment has been paid already, the following steps are required:
For Classical Withholding Tax and only if the withholding tax amount is zero.
Change of withholding tax base amount or withholding tax code of a cleared invoice.
If the withholding tax base amount and/or the withholding tax code needs to be changed after an invoice has been cleared please follow steps;
As you see from the above information the following quotation "only if the withholding tax amount is zero". Is this the case in your scenario?
If a withholding tax amount other than zero has been posted, you cannot change the values via transaction FB02.
Please also review the IMG documentation for transaction OB32 via spro -> Financial accounting -> Financial accounting global settings -> Document -> Line item -> Document change rules, line item. here you will see the following information;
Document Change Rules, Line Item
In this activity, you determine under which circumstances fields within posted documents can be changed.
Note
For a number of fields, the system itself determines that they can no longer be changed after posting. This includes all fields which are central to the principles of orderly accounting, for example, the amount posted and the account.
The system also prevents the update objects from being changed in documents which have already been posted, independent of the document change rules
Thus as you can see from the above description if an amount has been posted to the account you cannot change the fields despite entering in the field in OB32 as changable.
Please also be aware that the important table concerning extended withholding tax is WITH_ITEM. This is where the data found through the button 'Withholding tax Information' in FB03 is held.
(For example in the 'Withholding tax data button' If you click on the help of the field Withholding Code and select the button 'Technical information' you will see that the field name is WT_WITHCD) The fields concerned with same
WITH_ITEM-WT_QSSHB
WITH_ITEM-WT_WITHCD
should be customized in the document change rules (transaction OB32) You will also have to ensure that the posting keys in the document are set to optional (transaction ob41)
Regards
Ravinagh Boni

Extended Withholding tax issue

Hi Everyone,
I am facing a problem with my extended withholding tax.. I have done all the configuration and an entry gets created in table WITH_ITEM but this entry is for $0
I go to MIRO Transaction to create my invoice but the base amount is always blank, after that or at same time I can manually enter the base, or the amount but system is not calculating mnually someone could help me or have any idea on this?
Thank you and regards

Hi
Check your with holding tax type configuration what is the basis for calculation of base amount under the below path:
IMG ‡ Financial Accounting ‡ Financial Accounting Global Settings‡ Withholding Tax‡ Extended Withholding Tax ‡ Calculation‡ Withholding Tax Type ‡ Define Withholding Tax Type for Invoice Posting
Depending on this set up, system determines the base amount on which the with holding tax must be calculated. Under the control tab, you may want to remove the manual with holding tax base amount and make sure that one of the radio buttons in Calculation> Base Amount is maintained depending on how you want to calculate the with holding tax
regards
Sanil Bhandari

Extended Withholding tax in VIM

Hi ,
We are EHP 6 and we are implementing Open Tax for our new company code Philippines .
We have activated EXTENDED WITHHOLDING TAX " functionality in SAP and want to use same in Open text .
We are using VIM 6 .
Can you please help us on this?
how to activate extended Withholding tax in VIM 6 for EHP6 .
many Thanks
Regards

Dear Preeti,
I had similar issue in VIM7 but then discovered that the fields in VIM are displayed as soon as the vendor is subjected to withholding tax. Withholding tax will show up in Tax tab.
Let me know if it works.
Best regards,
Alessandro

Extended Withholding Tax in Country DE, Company Code 1000 in ECC 5 IDES

hi all
can we configure extended withholding tax for the company code 1000 in ECC5 IDES. even after making the whole configuration, while maintaining vendor master code an error message is coming.
message: Entry DE 15 does not exist in T059Z - check your entry
Message no. 00058
15 is Tax Code
i am getting some values in the customisation help hit like "Financial Accounting Basic Settings (New)" but it is not available in the IMG MENU. is it not availbale in IDES.
it is very urgent and i am stuck up. pls provide some inputs
regards,
ashok

Please, check in the IMG that you have correctly defined the table
T059Z:
Financial Accounting -> Financial Accounting Global Settings ->
    Withholding Tax -> Extended Withholding Tax -> Calculation ->
    Withholding Tax Codes -> Define withholding tax codes
Please, also check the customizing of the vendor's Account Group
and set the field Tax category as optional:
Trans. OBD3 -> Select account group -> Company Code Data ->
    W/holding tax data, w/h tax 2 -> Withholding tax category
Regards
Siva

Extended withholding tax deduction from customer credit

hi all
configured the extended withholding tax for deducting tds from customer credit line items.
deduction is required only after the amount accumulation 2500/- (this is also configured)
1.is the recipient type and country is not required for the customer tds..? (it is not visible in the customer master, but is in vendor master)
2.in the amount accumulation for 2500/- consider the following scenario.
>>first bill amount 2450/- (no tax deduction)
>>second bill for Rs.100/- from which i need to deduct tax for 2550/-, since Rs.100 is not enough to deduct 10% tax from tax base 2550.00 it is throwing error.
pls help
with best regards,
sallu c.mathew

Hi Ajeesh,
As already mentionned in standardf help from sap, you use J1INCUST which is a report to record the with. tax certificates sent to you by your clients. In doing so, the system clears the wi. tax to a G/L account that records how much tax your customers have withheld on your behalf, known as the customer tax creditable account. You can offset this tax against your income tax payable at year-end.
And you run the report immediately you receive a certificate from a customer.
Then system creates an accounting document to transfer the withholding tax from the G/L account for the withholding tax deducted by your customers to the customer tax creditable account.
Best regards,
Tarek

Extended Withholding tax changeover

Hi, I want to activate extended withholding tax for a company that has not used classic withholding tax. The changeover process only deals with moving from classic to extended. How do i move from nothing to extended ??
transaction WTMG - Company code selection - the system delets company codes for which classic withholding tax has not been used......... so how do I convert the existing data

Hi Dipak,
All invoices posted prior to activating EWT do not get paid - details when displaying the line item within F110 say at the bottom in the Note section "Item cannot be paid due to inconsistent withholding tax information". I tried entering an exemption number on the master record with a date range up to the date of activation, but that makes no difference to the error in F110. If I go into the open items and update them for withholding tax, the items then get paid via F110.
This leads me to believe that all old open items need to be converted.
Regards,
James

Extended Withholding Tax (India)

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