Tax on Monetary & Non-Monetary Perquisites (Payroll-India)
I need one help for FBT perk & tax calculation process.
There are no. of benefits which are in terms of Monetary & Non-Monetary form. All non-Monetary item’s tax is bear by the employee. Whereas the monetary benefits attract some tax on the basis of which they are giving some allowance to employee which balances the tax bear by employee. Giving one example below.
For ex. Total Tax on Income say A
Monetary Perk-B
Non-Monetary Perk Say C
The sum of the three Say D. Then they calculate tax on D & take the difference between D & A to arrive at tax on perk.
This tax then divide in such way:
Employer Tax= X (Difference between D & A)*C/B+C –to display on form 16
Rest will be employee tax but they give this amount as special perquisite allowance to employee & the calculation is as follows:
SPA= X (Difference between D & A)* B/B+C
Is there any standard functionality in SAP Payroll-India to suffice this requirement. Pl. guide me how to address this scenario.
can you come up with numbers ? and little clear to better understanding.
Similar Messages
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Mid Year GO-Live Payroll India.
Hi Friends,
WHat r the Wage Types we need to upload for Legacy Period in the System.
In T558 -C iam uploading the following wage types
Net pay
EPF Contribution
ESI Contribution
Income Tax
But iam afraid if we don't upload Earnings , Gross salary , the IT calculation will not accurate, experts
plz advice wht r all the wagetypes to be maintained for Legacy period.
Rgds,
sekar.Hi,
If you go live on the SAP payroll system in the middle of a financial year, you have an option to transfer your legacy data into the SAP payroll system.
The system provides the schema INLK for transferring your legacy data. For this purpose, you need to perform the following IMG activities:
Define the payroll periods for which you want to transfer the legacy data. For more information, refer to the IMG under Payroll India -> Legacy Data Transfer -> Define Periods for Import
Define the type of data you want to import. For more information refer to the IMG under Payroll India -> Legacy Data Transfer -> Define Pay Elements for Import
Upon execution along with the payroll driver, the schema INLK formats the information defined in the above tables as payroll results and stores the values in the database table PCL2.
For more information on the Legacy Data Transfer functionality, refer to OSS note number 506128.
Warm REgards,
Kapil Kaushal -
Tax Procedure for Non Leading Ledger
Hi
Can we assign two different tax procedure to Leading and non leading ledgers, If so how can we do that.
i have created a non leading ledgers based on geographical locations, i.e my Leading ledger is assigned to UK based company code so the tax GB is now tax procedure assigned at country level and to record the transactions of France and other Europian countries, we have created a Non leading ledgers at each country level,
i could able to assign different curriences and Fisacal years to these non leading ledgers but i could not able to assign different tax procedures to non leading ledgers.
The main requrement of creating non leading ledgers to report the business transactions and tax on them to local authorities.
Please let us know if non leading ledgers can have different tax procedure to that of leading ledger.
Regards,
karunakar.Hi Karunakar,
I think you can do that. Please follow SAP note
Note 873125 - DART: Ledger can be selected if NewGl is active
Thanks
Aravind -
Issue on Projected Income Tax (Payroll India)
Hi Experts
We have upgraded the system with SP_HR Component patch level 64 and configured SAP Note 1568264.
We have an issues on Projected Income Tax.
Scenario :
Monthly sal : 25000/- and paid the same to employee in Apr, May 11.
In the month of June employee has LOP for 2 days and paid 22000/- against June 11.
Now system is calculating projected IT based on 22000/- for the remaining months i.e., 22000*10= 2,20,000/-.
Showing projected income tax as 2,20,000+50000 = 2,70,000/- (should be 3,00,000/-)
Please suggest the possible ways to resolve this.
Appreciate your help.
Thanks
Venkat Babu KuradaHi Experts,
New issues rise Now....
For New (mid month) joinee at the first month Exemption U/S 10 is calculated based on the Conveyance Allowance amount *12 months (or no. of remaining months for financial yr end), but in my client income tax Exemption U/S 10 based on the actual salary (not earned salary) from the first month onwards.
For example :
Employee X,
Joined date 15.08.2011,
Conveyance Allowance = 800 INR. Earned Conveyance Allowance for 15 days = 400 INR.
While Start Payroll for the period 5th (August) 2011. The WT /130 Exemption U/S 10 = 3,200 (400*8). Based on this Conveyance Allowance The Exemption U/S 10 calculated, But I want to calculated the Exemption U/S 10 at first month (august 2011) based on follows,
August month earned Conveyance Allowance = 400 INR + Actual Conveyance Allowance per month =800*7 =5,600.
Exemption U/S 10 = 6,000 INR.
Please give me some solution
Thanks and regards
Mohan .V -
Income tax calculation for Payroll India
Hi guys,
I want to know how the wage type /436 (Tax on Total) is generating.
For example the total Income of an employee i.e. /434 is 417,480 for the month May 2007. I understood, how /434 is generating. But I am not realising how /436 (Rs. 74,244) is generating.
The slab is as per the FY 2007
110,000.00----
0.00 INR
150,000.00----
10.00INR
250,000.00----
20.00INR
99,999,999.00----30.00INR
Can any body explain me. I am waiting for your valuable reply.
Regards
PrasadHi Prasad,
Have you found any answer for /436.
Now am also is same position " HOW /436 IS CALCULATING" my client also want to see the TAX complete calculation.
PLEASE FRIENDS, help me out, ITS VERY URGENT in my UAT presentation.
Now again am starting this thread, Who ever gives required output they can awared their points.
Kind Regards,
Saisree.S -
Tax Analysis Tool | Report | SAP B1 | Localisation India
I don't know why this thread is not displayed same as I have typed in
Hi Solution Development Team,
I guess you are aware of the poor status of legal reports offered by SBO in country india version (I am aware of merging of A,B,C in new version 8.8).
I fore see if a Tax Analysis tool / Report provided same on the line of Sales Analysis already available at present, then it can be of great help to customer in following ways.
1. In India the frequency of changes in Legal tax structure is veri high, so even if all the as of date reports are developed then it can change any time.
2. The proposed solution can be suggested as work around to customers/users.
The desired tool/report should work as below
1st Input parameter screen should collect following information from user (you may add more)
1.a. From Tax Category
1.b. To Tax Category
1.c. From Tax Type
1.d. To Tax Type
1.e. From Tax code
1.f. To Tax code
1.2. Tax combination
1.3. Select From Date (Posting / Document)
1.4. Select To Date (Posting / Document)
1.5. Transaction category (Optional reference A/R Invoice Tax Tab)
1.6. Check Box ( Multiple choice A/R Invoice , A/P Invoice , A/P and A/R Credit Memo etc Marketing documents same as available in General Ledger report)
1.7. Radio Button (Summary OR Detailed)
Once user provides above details then in 2nd screen system should provide following data filterd based on criteria given in 1st screen
01. BP code and Name (Customer/Supplier)
02. Document Type
03 .Document No.
04. Document Date and Posting Date in separate columns
05. Item (multiple line for same document only in case of Detailed is selected in 1.7 above)
06. Tax Category (multiple line for same document only in case of Detailed is selected in 1.7 above)
07. Tax Type (multiple line for same document only in case of Detailed is selected in 1.7 above)
08. Tax Combination (multiple line for same document only in case of Detailed is selected in 1.7 above)
09. Tax Code (multiple line for same document only in case of Detailed is selected in 1.7 above)
10. Base Amount
11. Tax Percentage (depend upon the Tax code / Formulla)
12. Total Tax Amount (as per the choice made in 1.7 above - total document tax in case summary is selected)
13. Document Total as applicable
14. Transaction Category
15. BP Tax Info. Columns (VAT No. / Service Tax No. PAN No. etc all)
Also bring other columns which you find relavant, user should have option to make visible using form setting
The chalange I guess in this reporting/analysis is to display tax parameter code wise amount in column format which is stored in row format in system per item line (for reference see details displayed in link of A/R invoice Tax amount column).
Best Regards,
Samir GandhiNo Body responded very strange !!!!!
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Employer Unemployment Tax Not Being calculated in US Payroll
Hi Experts,
Employer Unemployment Tax (Tax Type 10) for Tax Authority Alabama is not being calculated in US Payroll in my SAP system.
The taxable amt is showing up, but the tax is not being calculated in the payroll log.
No error/warning mssg is provided by BSI in the payroll log.
I have already checked for the following:
1)We are using the standard tax model 002 provided by SAP for Alabama
The tax model settings are fine.
2) Table T5UTX is being maintained.
3) Tax Type 10 is setup against tax auth Alabama in BSI Tax Factory.
For tax auth Federal too, though the taxable for tax type 10 shows up, tax is not being calculated.
Can you please help.
Regards,
Somdeb.Hello Somdeb,
Please be aware that this is no standard SAP tax model only an example which must be customized as every customer is different.
First check the payroll log to see if the information is being sent to BSI TaxFactory. If not then the issue is mostly the tax model. Different tax models can be used based on the employee.
If the values are being sent to BSI and not being calculated, then there is an issue wil BSI. Send BSI the script and they will tell you what the issue is.
Regards,
Manny -
Tax Date Based Non Leading Ledger BS, TB and PnL
Hi Gurus
In our scenario, we will be using the Leading Ledger for Accrual Accounting, while the Non Leading Ledger will be used for Cash Accounting. It is required, for management effectiveness to capture transactions on accrual basis (leading ledger), but as far as tax reporting is concerned, it will be on cash basis (non leading ledger).
Scenario is:
Vendor Invoice comes on Jul 1, 2009 with terms of payment as say 45 days. The due date is mid August. In accrual (Leading Ledger) accounting, we will book the invoice on Jul 1, 2009 (posting date) with 45 days credit period, and due date as Aug 14, 2009. Now, as per cash accounting (Non Leading Ledger) we should only book this invoice on Aug 14, 2009,when the cash outflow will take place. However, since in New GL posting automatically happens for Leading and Non Leading ledgers, the NL document also will have the same posting date as LL document (Jul 1, 2009). The TDS/ Service Tax etc. however will be deducted only on payment, in August, which is a different fiscal period (as well as different tax reporting period).
My question is, is there a way to use TAX DATE or some other date field for Non Leading Ledger, and have the tax reports generated on that basis? Mind you, the purpose of cash accounting is for statutory and tax purposes. So we need to be able to draw financial statements based on cash accounting.
Would greately apprecaite if any of you can help me guide to a possible solution. I have the following options:
1 - Create a report that will use (somehow) a logic to capture the transactions based on tax date
2 - Find a User Exit to capture the actual cash flow date and use it to generate the tax/ statutory reports
3 - Use Tax Date field to store the cash flow date and use it to generate the tax/ statutory reports
Any suggestions welcome!
Regards
MandarHi,
using different ledgers for parallel accounting ( eg IFRS, US-GAAP, Indian-GAAP...) is not a matter of tax procedure assigned to a country and company code(s) assigned to a country.
The tax law for a country/tax jurisdiction code does not depend on which reporting standard you use (IFRS, US-GAAP, Indian-GAAP...).
Best regards, Christian -
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 -
New tax code for non excisable plant
Dear all
Please suggest solution for following scenario
We created new comp. code and assign new plant, this plant is non excisable, my problem is that can I used same tax code which is I created earlier for first co. code or I have to create new tax code for new plant, these taxes I have to inventories on material, I am using tax inn and tax classification ***.sequence.
VipinHi Vipin,
from my point of view you can use the same tax codes.
to inventorise the duties you have to make little change in the process.
while doing GRN if the material is excisable then the tabs will open. now you have to go to excise item tab and there you have to choose noncenvatable in the dropdown menu that is the material type.
in this way you can have the results you need.
regards,
Adwait Bachuwar -
Taxes: Deductible and non-deductible
All SAP Gurus,
What is the difference between Deductible and non-deductible taxes?
Regards,hi
In case of some materials, the tax paid on purchase of items can be availed back from the goverment, This is called deductible tax. Here tax portion is not loaded to material inventory, It is posted to a separete GL account as per the config and later stage it will be cleared-off by finance
In case of non-deductible tax, the tax amount will be loaded to material inventory. Here company can not claim this amount back from govt.
regarding configuration, u have to define a new account key in case of deductible tax and assign gl accounts
in case of non-deductible tax u can use SAP standard key NVV
regards
kunal -
How to change the tax form from w-9 to a tax form for non us ?
am a non us devaloper trying to upload my first app to i tune
but itune connect want me to fill a w-9 tax form
is there a way to change it to non us form?i thoink usa
is there a way i can change it? -
Tax Code setup in SAP B1 for India
SAP B1 implementation for an Indian Company.
We have defined Tax Code as BED + CST and also defined all other setups such as Tax combination codes,effective dates etc.
However when we create any document and enter Tax Code, in the selection list only sales tax codes such as ST , CST, VAT are shown but not Excise codes such as BED or BED+ CST.
Pl help.
Shrikanth RaoWhen you are creating location enter pan no in Accounting Data -> General tab then same will show in Excise tab with XM and XD enter last three digit no from ecc no of you company.
XM for manufacturer and XD for Dealer. You have to enter ECC no till the time system will not allow you to add location.
And when you are going to select excisable item then system will show you only excisable tax code only and when are going to select non-excisable item system will show except excisable taxcodes. System is not showing all taxcodes togather in marketing documents in 2007 and 8.8.
Regards,
Sachin
Edited by: Sachin Suresh Deshpande on May 8, 2010 11:56 AM
Edited by: Sachin Suresh Deshpande on May 8, 2010 11:58 AM -
Error while Running "Tax Credit Upload" Request Set in Payroll
Hi Friends,
Firstly, wishing you all a happy New year.
I am having an issue with a process, we have received a file from Irish Revenue which is a file with .tfa extension having the Tax details.
While uploading the file using the "Tax Credit Upload" Request Set, the process spawns 2 more processes and then errors out with the following message in the Log file
SQL*Loader-500: Unable to open file (99809810AMD.tfa)
IBM AIX RISC System/6000 Error: 2: No such file or directory.
If you could help me as to what exactly we are missing in this process.
With Warm Regards
Sachin ShirkeDear All,
Due to some changes in Income tax in the previous records (The 2 employees mentioned below were inPA 4000 during 01.04.2011 to 30.09.2011) and now they are in PA 2600 pertaining to Pay Roll Area 24 (Pondy API & Pilot Plant)
Pay roll run processed for11th Period ( February 2012) and the error appears as follows
u2022 2 employees found error Assignment to feature 40EPF did not take place appears.
u2022 PF arrear amount showing negative value
Awaiting for your valuable replies
Regards,
Pinky -
Payroll India - (Karchi report)
Karchi Report (Salary Advance report)
Hi All,
I need help in the paying salary in advance.... how it can be calculated in the payroll
Example:
Employee X works from 1th dec - 31th dec.... His pay will be done in Jan 1st
But the employee X wants his salary b4 the regular pay date.... tht is b4 Jan 1st.....
For instance he askin on 17th dec...... usually what my clients do is they calculate 15 days (Only 15 days) salary for tht month which includes daily allowance n all other allowance.... and also attendance too if he s absent n that 15 days they will deduct and then they will minus the amount with previous month deduction divided by 2
15 days of salary - (Prev month Deduction / 2)
N later when they pay salary n the month end they will deduct this amount
So some body help me how to do this.... They want report for tht also....
RajBased on the EE's work schedule, you can pay him on the 17th itself. If the EE takes any un-paid vacation between 17th and 31st, it will be included in the next month's pay and the EE will get reduced pay.
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