India -With Holding Tax - Changes As per the Budget Approval
Dear All
Many of you are aware, there will not be any surcharge, education & higher education cess for with holding tax in Indai from 01.10.2009.
Our client is operating seperate tax codes for Basic Duty, Surcharge and Education Cess. We have change the configuration and maintained 0% in the formula for calculating with holding tax for surcharge and education cessand we have maintained with the validity from 01.10.2009
(ie., The above solution we thought because, we wish to maintain the same tax code and with out modifying the vendor master)
Now, the system is working fine for all the scenarios, except the transfer of the old advances from special gl indicator to normal line item through T.Code (F-54). Under this T-code, the system is reversing only basic duty at old rates with out surcharge and cess.
Kindly suggest the solution to reverse the surcharge and cess while doing F-54 with the posting dates as 01.10.2009 onwards
Regards
Anilkumar
Please go through the SAP note 1359268 for budget changes
also see the 1369775,1371380,1372734 for your exact requirement
Similar Messages
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With holding tax base amount for 1099 vendors with discounted payment term
Hi Friends,
We have a below situation for 1099 vendors,
Some of the 1099 vendors are set-up in the system with payment term with discounts i.e. 2% if paid within 10 days
As per config, system posts with holding tax base amount at the time of posting payment.
With holding tax rate is 0%,
Based on modified net amount calculation
and
Cash discount calculation before w/tax calculation
When we have vendor with input tax, system excludes tax amount at the time of payment but for the with holding tax base calculation amount system does not exclude input tax type.
Which causes difference in 1099 misc vendors
Below is the example of how system calculates the amount.
Invoice $ 1000, payment term 2% if paid within 10 days. Input tax 7.25%
Payment going out=
$1000- $ 72.5(tax 7.25%) = $ 927.5 18.55 [2% discount] = $ 908.95 (payment amount)
With holding base calculation =
$ 1000 100 (2% discount) = $ 900
Difference between payment going out and with holding tax base = 908.98 900 = 8.98
Can some one please tell me how to get rid off this difference?
Moreover, please tell me if its normal to have 1099 vendors with discounted payment term.
Any thoughts on above situation will be helpful
Edited by: Shefford William on Jan 28, 2008 11:36 PMDear All
i am also having the same problem. The example is
Net invoice Value = $ 100,000
Input Tax @ 15% = $ 15,000
Total Invoice Value = $ 115,000
Cash Discount = 20% with in 20 days
On payment the system behavior should be
Debit Vendor invoice Value = $ 115,000
Debit Cash Discount @ 20% = $ 20,000 ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit W/H Tax deduction @ 3.5% = $ 3,325 ( 3.5% of 95,000 the Inv Value - Cash Discount that is $ 115,000 - $20,000)
Credit Bank Account = $ 91,675 ( Inv value - Cash Dic - W/H tax that is $ 115,000 - 20,000 - 3325 = 91,675)
However at the time of payment system is calculating tax as follows
Debit Vendor invoice Value = $ 115,000
Debit Cash Discount @ 20% = $ 20,000 ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit W/H Tax deduction @ 3.5% = $ 3,220 ( 3.5% of 92,000 the Inv Value - Cash Discount that is $ 115,000 - $23,000. This $ 23,000 is only calculated for W/H tax calculation that is 20% of $ 115,000 )
Credit Bank Account = $ 91,780 ( Inv value - Cash Dis - W/H tax that is $ 115,000 - 20,000 - 3220 = 91,780)
this is not the common practice when using the net base value in the system.
Can any one help me in this regard. I really have been stucked in this problem for many days
Regards
Bilal Athar -
With holding tax amount exceeds the cutomer/vendor line item amount 001
Hi Guru's,
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And tell me the impact of previous open item documents.
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Maruthi.Thanks for all,
MY problem solved.
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I have a requirement of chnaging withholding tax for exisitng vendor. Is it possible to achive this using any function module or BAPI and ateast by BDC or LSMW ??
Best suggestions will be rewarded with points.
SivaprasadHi Sivaprsad,
You can change the with holding tax data by using BDC. because, it having table control, so it's easy to update code in BDC.
Hope, it will help you.
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How to create the Variant for 1099MISC With Holding Tax ?
HI,
please follow the below steps to create variant at report.
tcode se38
report RFIDYYWT
pass all the parameters
press save icon
give variant name
retrive the variant in report
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report name RFIDYYWT
press : shift + F5
or get varinat icon.
I hope above will resolve your issue.
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Madhu M -
How to calculate with holding tax for the open item
Dera all,
Can you tel me how to simulate with holding tax for the open item? i will try do it using FI_WT_F110_CALCULATE FM but it dosnt work. plz help me
regard
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can you please elaborate on how you resolved it. we are facing the same issue with BAPI not calculating the withholding tax data.
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Unable to select multiple with holding tax codes.
This entry already exists in the following tables '' (ACPR) (ODBC -2035) [Message 131-183]Hi,
Actually this is an application error in 2007 A and there is no version/PL to fix this issue.
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Nagarajan -
Regarding the Grossing up Method for With holding Tax
Hi
I am implementing SAP ECC 6.0. I am having a specific requirement with regard to With holding TAX. If i configure the WT, the tax amount will be deducted from the invoice & posted to a separate GL account. But in My case, the WT amount should be posted to a GL Account and the amount should not be deducted from the vendor account.
This arises in case of foreign paymentsTry following this guide for Defining Withholding Tax Formulas
http://help.sap.com/saphelp_erp2004/helpdata/en/7b/5d823ae35c3769e10000000a114084/frameset.htm
and this one Defining Withholding Tax Types and Withholding Tax Codes
http://help.sap.com/saphelp_erp2004/helpdata/en/8e/5a823a89569e68e10000000a114084/frameset.htm
This may help you! -
WITH HOLDING TAX ON DOWN PAYMENT
HI
I am using TCode F-47 for down payment request to be paid to vendor. In Vendor Master Record with holding tax information is activated. But at the time of processing payment against down payment request using TCode F-58 With holding tax not deducted and full down payment requested amount getting debited to vendor.
Pl suggest me
Message was edited by:
Chandrakant.K AcharyaHi Chandrakanth
u check once WHT settings at WHT type for Payment posting.here you remove inherit base option. for Cess claculating on TDS.
you check once define WHT codes for cess. here you calculate for 1% cess 0.022 % on TDS base amount or invoice amount. ex: inv: 100 , TDS 2.2 %. Cess 1% on 2.2% means 0.0220. like that you calculate.
Then you update cess tax codes in FK02,here u select liability option.
Then you can use f-47. here system showing popup with Base amount,TDS & cess codes.then you save it.
now you check with f-58. other wise you want temporly solution. go to FB02 change doc. there you can modify WHT amounts then save it.
ok all the best
Raj -
Dear Sapgurus,
we are using 2 different with holding tax type one is at the time of inv posting and 2nd is payment posting which is earlier, we had created tax types and tax codes we assigned in vendor master assgined to company code and automatic posting also, finally if any vendor pay advance then we calculate tds it will post to tds g/l account, after that in sap any option how to file the tds returns.
Regards
VeeruDear,
Once you have posted TDS then usually at the month end you will run below transaction to complete the process..
1. Use transcation J1INCHLN (this will club all TDS posted per section and paid)
2. Use transaction J1INBANK (when you make TDS payment in Bank then bank will give you challan number which you have to update in the system)
3. Use transaction J1INCERT (this will print the vendor certificate (this is usually an year end practice)
4. Use transaction J1INMIS (this will provide consolidated report for TDS)
Regards,
Chintan Joshi -
How to apply with holding tax?
Hi guys,
While creating invoices, based on the supplier sites and withholding tax rate it will automatically apply the withholding tax on invoices while we validating it or paying the invoices.
But here we have an issue that what if the tax rates are changing for every 6 months? We need to modify withholding tax for supplier sites for every six months. But my client is not willing to modify tax rates for supplier sites for every 6months.
What my client expecting is he wants’ to select withholding tax type while creating PO. While we are creating invoice if we match this invoice with PO then he want to with hold tax the amount from paying.
Is this possible through personalization / customization or any suggestions?
We are expecting any suggestion that will help us to come over this issue.Hello,
For a record in BBSEG you can have multiple records in the data file which corresponds to Structure BWITH which allows more than one value for field WT_WITHCD. For ex:
BBKPF
Field1 Field2
a bb
x yy
BBSEG
Field1 Field2 Field3
a bb ccc
x yy zzz
BWITH
Field1 Field2 Field3 WT_WITHCD
a bb ccc WT_WITHCD1
a bb ccc WT_WITHCD2
a bb ccc WT_WITHCD3
x yy zzz WT_WITHCD7
x yy zzz WT_WITHCD8
x yy zzz WT_WITHCD9
Hope this gives you some help to proceed further.
Best Regards, Murugesh AS -
DOUBT IN CIN (WITH HOLDING TAX TDS)
Payment occured first and Invoice occured afterwards. Now my question how to configure the system for calculation of with holding tax amount.
Hi Prasana,
In the TDS configuration, Define Withholding Tax Types You have to put a tick in the "Per Year, Starting with Month" accumulation type & enter the starting month.
Next in the define witholding tax code you have to put a tick in the box "wtax form" in the calculation Tab.
Next in the define formulas for calculating withholding tax you have to enter the formulas for calculating tax as follows:
To base Amount, Witholding Tax Rate etc. can be maintained.
Hope this helps.
Regards,
AVD. -
Dear Sir,
I seek the kind help from the experts as , whic is the table to give the following information related to CIN With-holding Tax :
Information is :
Certificate Number / Challan Number / Challan Date
With Thanks and Regards
B MittalHi,
In with holding tax there are two elements :
- Withholding types
- Withholding codes
each withholding type may contain several withholding codes.
In the vendor master record, you assign the with holding type to the vendor, so when you press F4 you get all withholding taxe codes attached to this tax type.
you can display and change this assignement in customizing
Customizing >>>Financial Accounting>>> Financial Accounting Global settings>>>Withholding tax>>>Extended Wihtholoding tax>>>Calculation>>> withholiding Tax Codes>>>Define withholiding Tax Codes
regards -
Customer master with holding tax data
Hi,
I am working on customer master transaction 'XD01'. I want add new fields to the existing subscreen 'with holding tax' and new fields in the new subscreen. There is no enhancement is available for this, but there a BADI 'CUSTOMER_ADD_DATA_CS'. But with this we can not update the data to table KNBW(with holding tax data). Can anybody worked on this type of requirements.
Thanks in Advance
Rajavardhana ReddyHi Rajavardhana
Here there two interfaces you can use for transfering data to database and getting data from database.
SET_DATA Data Transfer
GET_DATA Transfer Data
Hope this helps you.
Cheers
Manohar -
Calculation of with holding tax
The requirement goes like this.
We have to first remove the with holding tax data from the vendor master.
And created 1 KR(amount : 1000) & 1 RE(amount : 2000) document type.Also we posted both the above invoice documents in one Z1 clearing document.
Then add the with holding tax information in vendor master.
Then we executed the report RFWT0020 for that vendor and the document number.Its updating WITH_ITEM table with only the KR total(1000) under WT_QSSHH field.Its not considering RE total.
I debugged the program RFWT0020 and found a function module FI_WT_GET_P_WITH_ITEM which performs the with holding tax calculation.When i checked the function module,its fetching from global memory.
Is there any user exit or BADI for this.We are using 4.7 version.
Please suggest how can i update the correct with holding tax amount in WITH_ITEM table.Hi,
i´ve used this badi for MM (incoming invoices):
MRM_WT_SPLIT_UPDATE
Best regards.
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