Tds Limit

Hi,
We have implemented ECC 5.0 . Our company is in India . In India there is one statutory requirement regarding TDS. Tds Calculate as per section code and in that there is limit for deducting surcharge .
Example : - In India For Contractor limit is 20,000 Inr , If contractor invoices do not cross these limit then sap has to deduct only "Basic + E.cess"
But If contractor invoices cross these limit then system has to deduct surcharge on all invoices ( means before cross invoices)If I have to deduct surcharge on that invoice and onwards invoice then I can do this . also this process is manual.
system don't give any TDS Limit for duducting surcharge.
I cant deduct surchage on back invoices...
Regards,
Kaushal Shah
+91 9924756365

Hi Kaushal
I think there is a misconception in this regard. The law actually states that if in a fiscal year, the total payments to a contractor does not exceed Rs.20,000/-, then NO TDS has to be deducted. and any payment together over and above Rs.20,000/- in one fiscal year attracts TDS.
Regarding surcharge, it is applicable only if the following is satisfied,
1. in case of individuals/HUF, applicable only if payment exceeds Rs.10,00,000/-
2. in case of Partnership firms / companies, surcharge applicable only if payment exceeds Rs.1,00,00,000.
Kindly make a not of this. Being a Chartered Accountant, this is my duty to clarify on the basic matters relating to statutes and their interpretation.
And in SAP, there is no such process by which u can automate this. it has to be manually done for each and every vendor. u cannot set the limits in the system at all.
Regards,
CA. Karthik Narayan N S
SAP-FICO Consultant

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