Indian Withholding Taxes Doubt

Can any one say me on what basis is that Business Places for a Company code be Created?
is TIN Number and TAN Number serve the same purpose for a Company code Configuration ?
Best Regards,

Hi,
is TIN Number and TAN Number serve the same purpose for a Company code Configuration ?
TIN and TAN do not have any dependencies in company code configuration...
TIN is mapped to customer/vendor master data in J1ID and specifically used for sales tax reporting.
TAN is mapped to Section Code that is used report TDS payment and deduction.
Regard,
Chintan Joshi

Similar Messages

In fbl1n report for document type RE withholding tax amount is not showing

in fbl1n report for document type RE withholding tax amount is not showing
in sap note 363309 determines
Solution
Remove the field which contains the withholding tax information (field BSEG-QSSHB) from your display
variant.
If you want to display the withholding tax information, double-click on the document number and
subsequently choose 'Withholding tax'.
my doubt is we remove the field BSEG-QSSHB in layout how can show the withholding tax amount in FBLIN report
how to remove from the layout
please clarefy
bhayyapu

Hi,
If you want to check amounts of withholding tax for the vendors, you have some options to view it. You can access the WITH_ITEM, LFC1 tables by SE16. You have too the S_P00_07000134 report. This report is developed for the Colombia but I already used for the another country with the ABAP development for this country.
Also you can use table join BSIK and WITH_ITEM by SQVI for the open items and BSAK and WITH_ITEM for cleared items. It is more simple and fast.
JPA

Change withholding tax type in FB60

Hi SAPexperts,
I have a doubt about withholding tax type using FB60
I've a customer that is a professional (subject a withholding tax type G --> 15%), but he rents me a building so he has other withholding tax type G (15%)
The withholding tax type applied in the invoice (G or H) depens on the kind of service that the customer done.
If I assign these two withholding tax type in the customer data master, when I create a customer invoice (by FB60) the system brings me two withholding tax type from data master. I have to delete one of them, unless the system applies doble tax in the invoice. It's not a good solution because I need a validation to not forget to detele one of them,..
If I assign only one withholding tax type in the customer data mater, when I create a customer invoice is not possible to chage the withholding tax type assigned by the system. I seems that It's impossible to apply another withholding tax type different from the data master.
If you have another idea,...
Thanks and Bye

Hi All,
Done.
Problem in To date. Todate is update as 31.12.2009.
So, changed to 31.12.9999.
Thank you very much to all of YOU.
Regards
Partha

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

Extended Withholding Tax - Business Place

In Version 5.0,when we are trying to create withholding tax challan(vendor),the system is giving the message as no business place for doc.type is created.
can u pl. clarify in this reg.
Awaiting for your reply.
Thanks

Hi,
I am Srinivas, working on ECC 5.0, for Indian roll out . Pls mail me at: [email protected]
I have a solution, but pls be in touch. I dont know , you have alredy solved this issue.
pls keep communication open.
Srinivas

Extended Withholding Tax ( Minimum/maximum Base Amount ) - with accumulati

We are facing problem in posting of vendor Invoice. Actually we have implemented Minimum base amount ( Rs. 75000/- ) at withholding tax type level and accumulation at per year in withholding tax type A1 ( for testing purpose ) and assign the same to a vendor. We have booked some invoices up to RS. 75000/- system working fine, no WHT is deducted. But now we have received a another Invoice Rs. 5000/- and at the time of booking of invoice system giving an error message
I have changed the error message to warning but itu2019s again showing the same error message.
Actually the problem is system calculate the WHT from the beginning of the year to till date and the amount of Vendor invoice is less the than the amount of WHT but itu2019s legal requirement and we have to post the financial entry as mentioned below
Fictitious figures
Vendor Account           Dr.           Rs,      1500.00     ( Debit instead of credit )
Expense Account           Dr.           Rs.      5000.00     ( Actual exp. Of Invoice )
WHT Payable Account            Cr.           Rs.      6500.00     ( Total WHT from the beginning
Please provide the any.
SAP reply
Dear Customer,
We understand your requirement. But the standard SAP system does not support a scenario where an invoice amount in lower than the tax amount.
This is not a localization specific requirement. The accumulation logic is a generic system behaviour and all countries use it. We cannot make any change in the standard in this regard and change the current system behaviour.
Option to handle this in the system
The only way this can be handled in the system is once the accumulation limit has been reached, use a separate tax type tax code with out accumulations.
Though this is not the ideal solution, this is the best possible solution for your requirement.
Accumulation is not localized for India and the standard solution vailable for all the countries is used by Indian customers too.
SAP is currently not looking at any enhancements to this feature.
Other than the option mentioned above, there is no other way of handling this in the system.
Best Regards,
Soumya
If any one have any otehr solution please inform us.

This cannot be possible for two reasons.
1. If you are not able to recover the amount from the Vendor, you'll have to bear it yourself which is a loss to the company.
2. Even if such a process is provided, you cannot alter the previous invoices and your EWT amount does not correspond to the invoice you account for. SAP works in an assumption that Tax will be calculated as a % of base price and cannot exceed it.
The only way to mitigate this is to decide whether a Vendor would require this exemption to be declared based on past experience and past amount of transactions in the beginning itself. If it is unlikely, better do not declare the accumulation limit for them. This will save you from incurring loss and reducing the risk for the company. Start deducting right from the beginning.
If you are not sure, instead of giving accumulation, you can declare exemption upto 75000. In this case, SAP cannot check whether the Vendor has crossed the limit or not. You'll have to manually check and pass a Debit note to that extent when he exceeds the limit. Again, this does not evade the risk of loss for the company. Also, you cannot do TDS post processing for this amount (like TDS Remittance challan, TDS Certificate etc).
So, in my opinion, try and decide if the Vendor would require accumulation right in the beginning itself. Even if not able to decide, you can still deduct the tax and issue a TDS certificate, which the Vendor can claim refund based on his transactions with you from the Income Tax in case he does not exceed the limit. This will limit the risk of loss for the company.
Ravi.

Withholding tax settings(not extended withholding tax)

Hi,
I am working on withholding tax(not extended withholding tax). Previously we have one company code for that we created withholding tax and withholding tax codes. Now we are going to create another 2 new company codes. Now how to assign the withholding tax codes to the 2 new company codes.
In extended i can assign withholding tax codes to company code but in withholding tax how i can assign withholding tax codes to the 2 new company code.
Regards,
Sankar

Hi
You can assign the same w tax code to another company code also,for that you go through this:
Path: spro>financial global setting>Withholding tax> extended with holding tax
Company code  Assign with holding tax types to company codes
Path: spro>financial global setting>Withholding tax> extended with holding tax
Company code  Activate extended with holding tax
May be this information is useful to you
If you have any doubt feel free to ask
Regards
Surya

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.

Withholding tax amount exceeds total bank line item amounts for currency JP

Hi Friends,
we are facing the above problem which posteing the Downpayment in to Currency JPY. I have checked Bank GL for flag "Relevent to Cash Flow" and WHT Type Central Invoice Redio button. Still the problem exists.
This am facinf only for JPY can anybody help me on this.
Regards,
SATYA

Hi,
Try this,
Follow the Path.
WT > Ext WT > Calculation > Min and Max Amounts, Here you select the country (Japan JP) and then define the minimum and maximum amounts for Withholding Tax Types and Withholdiong Tax Codes.
For Eg:-
W Tax Type : .......
Currency : JPY
Valid from - 01.04.2009
Min Withholding Tax Amt - 10,00
Max Withholding Tax Amt - 999.999.999,00
Min Base amt - 10,00
Then Save it and try again.
You should define this for all the withholding tax types and codes which you have created.
Please let me know in casae of any doubt.
Regards,
Neeraj

Company code withholding tax master record information ???

Hello,
Good morning
What is meant by company code withholding tax master record information. Can we assign an WHT exemption code here ?? If so, what is the purpose for creating that code for our company code and exempting here ?? please make this clear.
Thanking you,
Suresh 

hi,
WHT codes are defined at country level. For country u can define codes which u have to assign to company code.
Exemption notification As per Indian IT Act means special grant by notification to assesee for deducting TDS at lower or nil rate for period specified in that notification. Exemption code is defined to reflect the same.
U cannot assign exemption code to WHT Code as it is defined at client level and as per above paragraph exemption notification is party specific.

Withholding tax- Vendor Invoice Reversals

Hi,
In Indian CIN -
I would like to know, if vendor invoice accounted (after deducting the Withholding Tax), can be blocked or give a warning before reversals. This is because we remit the tax in next period, before the due date.
After the tax is remitted, I would not like to reverse.
Kindly let me know if there is solution for this
Thanks

Hi
When you will remit the tax, the TDS line items in your vendor booking document will be cleared. After that if any one wants to reverse that document, system will not allow unless FBRA is performed. So you have got the control in the system after deposit of your TDS.
regards
Parag Bhargava

Withholding tax Formula Functionality

Dear Gurus
Is there any way of using the Withholding tax Formula Functionality with an option of four decimal places. Currently, the WHT formula allows for only two decimal places and therefore does not suit the Indian Income Tax law.
Regards
Abhishek

HI,
currently above functionality is not available in standard system .
You need to create a Develop request.
http://service.sap.com/rollin.
please refer the note no 11
Reg
Madhu M

Withholding tax requirement

Hi,
We have a requirement of withhoilding tax from third party vendors. This is specific to philipinnes country.
Scenario is our broker is incurring some expenses on our behalf and then claiming us for reiumbursement.
So, as per local tax laws for few items, we would be required to withhold tax from the vendor i.e. third party vendor not broker. My doubt is if we create a broker as a vendor then we would not be in a position to withhold the tax as in WHT return details of third party vendor should come. BUt if we create that third party as a vendor then we are not in a position to pay our broker as we are getting bill from our broker.
Please give me a probable solution in SAP.
Regards
Anuj Agarwal

Hi
I think that you can make the third party as a vendor and the broker also as a vendor. Assign the withhold tax key in third party masters. Than clear the third party invoices by the Broker account and than settle your broker. By this you can record the actual entries done.
Hope it will work.
Thanks

Withhold tax error

Hi experts,
When I am creating the remittance challans ( T Code J1INCHLN ) following error i got
Business Place for document could not be determined
Message no. 8I707
But I created business place and assign to Company code
Could you pl give me full run cycle like
invoice posting - how to capture TDS & ED Cess & Se Higher Ed Cess ?
At the time of Vendor Payment - same like TDS & ED Cess & Se Higher Ed Cess ?
At the time of making the TDS payment ?
Remittance Challan ?
Vendor TDS Certificate how to generate ?
Accounting Entrys along with path & T Code
Pl advise.
Regards
SAPCO

Hi ,
For slove that error
You can maintain the internal number ranges for tax payment
challans, with respect to each Section Code, in the Country Version
India (CIN) Implementation Guide (IMG), by choosing India Localisation
Menu > Tax Deducted at Source >Extended Withholding Tax > Creation
ofremittance Challans > Maintain Number groups. This customizing needs
to be maintained.
(For direct view maintenance, use Transaction SM30, view name
J_1IEWTNUMGR_1).
On the Maintain Table Views: Initial screen, enter the table/ view name J_1IEWTNUMGR_1 and choose the Maintain push button.
On the Change View Number Groups for Internal Challan Numbers u2013 EWT India: Section Code screen, make the following entries
Company Code..... Section Code Off------ W/Tax Key-------Number Group
XXXX-- XXXX 194C---- XXX
May be this information is useful to you
If you have any doubt feel free to ask
Regards
Surya

Withholding tax for interest

Hey Gurus,
         It requirement for my client,we are running the F.26 Interest scale for customers find below the example in brief.........
         Client will receive security deposits from customers we treated this as a special GL for this we will pay the 7 % interest to the customer.
        If the interest amount is more than RS.5000 paying by the client we need to deduct WITHHOLDING TAX all the configuration has been done we are able to see the Base amount in customer line item but system is not calculating the WITHHOLDING TAX.
       Could you let me know the probabilities where i might got missed one more doubt is W/H Tax will calculate with help of Business Place,F.26 is a background process so we are not able to update Business place.Is there is any configuration where i could update business place by default or any other ways.
      Appreciated for early response...........
    Thanks a lot in tonnnss

Dear,
I recommend you check the tax categoty on the master data, check if there is an exemption data period, or if there is a monthly limit of accumulation in Customizing.
regards

Indian Withholding Taxes Doubt

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