TDS on Rent
At the time of calculating the TDS on Rent, system deduct TDS on Service tax amount also.
But according to Govt. Circular, TDS should be deducted only on Rent (excluding Service Tax).
What configuration should be made?
Hi
Goto
Financial Accounting (New)>Financial Accounting Global Settings (New)>Withholding Tax>Extended Withholding Tax>Calculation>Withholding Tax Type>Define Withholding Tax Type for Invoice Posting&Define Withholding Tax Type for Payment Posting.
Double click on you WT TYPE , in calculation block select the radio button GROSS AMOUNT & TICK ON INHERIT BASE then save & exit. Your problem will be solved.
Similar Messages
-
Advance rent settlement in installments
Hi Experts,
I've a business case where the client has a scenario to settle the advance rent (say 4 lakhs) in installments.
The business case is shown as under:
A new store has been opened on 01.01.2014.
Advance rent paid by the retail client to the landlord (at the time of store opening) = 4, 00,000 INR
Fixed rent paid by client to its landlord = 10,000 INR (per month). (Jan 2014- Dec2014)
Month
Rent (in INR)
Jan 2014
10,000
Feb 2014
10,000
Mar 2014
10,000
Apr 2014
10,000
May 2014
10,000
June 2014
10,000
July 2014
10,000
Aug 2014
10,000
Sep 2014
10,000
Oct 2014
10,000
Nov 2014
10,000
Dec 2014
10,000
After one year, the client wants to settle the advance rent (400,000 INR) which was paid at the time of store opening.
Advance rent to be settled in 10 EMIs= 4,00,000/10= 40,000 INR
Fixed rent (after 1 year)= 50,000 INR
Therefore, vendor account to be credited= 50000 (current rent) -40000 (1st EMI on Jan 2015) = 10000
TDS to be deducted on vendor amount @ 10%= 10000-1000= 9000
Hence vendor will be credited by 9000 Rs.
Accounting entries to be posted to settle the advance rent post Jan 2015 onwards:
Accounting entries
Dr (in INR)
Cr (in INR)
Rent a/c
50,000
To Vendor A/c
9000 (10000-1000)
To Advance A/c
40000
To TDS on rent A/C @ 10% ( on balance amount only)
1000
To meet this requirement in SAP RE-Fx:
1) What are the configuration steps to be done in RECACUST?
2) Is there any SAP Note available to be applied for executing advance rent settlement in installments.
Please advice.
Thanks
Shantanu KarHi Bala
You have mentioned above the reason why you use MTO at stage 4. Going by that, your settlement process at stage 4 will be same as earlier stages
You don't need to settle to sales order. Don't go by what else you have read. Just follow the same process
Br. Ajay M -
Dear All,
Due to some changes in TDS slabs, this is informed to not to put any entry effects TDS account from 01.10.2009 onwards till the further information.
Some of the Amendments are mentioned below w.e.f. 01.10.09 Financial Year 2009-2010
1. TDS
·...TDS on rent will be 10% in all cases i.e. Individual or HUF, Domestic Company or Firm
·...TDS on contractors will be 1% in cases of Individual or HUF
·...TDS on contractors will be 2% in cases of Domestic Company or Firm
2. Surcharge:
·...No Surcharge on TDS in case of payment is made to Resident or Domestic Company
·...No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company
·...2.5% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore.
3. Education Cess
·...No EC or SHEC on TDS in case of payment is made to Resident or Domestic Company Other than Salary
·...3% EC and SHEC (2% + 1%) on TDS in case of Salary
·...3% EC and SHEC (2% + 1%) on TDS in case of payment is made to Non Resident
Please help me for solving this...How can i do these amendmends...?????
Thanks...This is to be done by SAP FI consultant.
However, u can navigate to spro-> Financial Accounting-> ****-> Witholding Tax-> Extended WT for changes
Regards -
Dear All,
Can any one send me the Accounting entries which are generted from Advance Payment to vendor Invoice and clearing the vendor account transactions.
Thanks & Regards,
Kumar.Dhi
If you are calculating TDS for Rent at the time of Payment then following entries will come:
1. Down Payment
Vendor Dr. 10000
Bank Cr. 7940
TDS Cr. 2060
2. Invoice
Rent Dr. 20000
Vendor cr. 20000
3. Clear Vendor Down Payment
Vendor Dr. 10000
Vendor(spl GL) cr. 10000
4. Payment
Bank Cr. 7940
Vendor Cr. 10000
TDS DR. 2060
Vendor Dr. 20000
TDS Cr. 4120
if u need any further clarification, let me know
If helpful assign points -
I have one more doubt for GL creation which is asked by the clien
TDS on contractors they created GL accounts Tax category as > input tax allowed and also they have not ticked only balances in local currency but the same for other TDS on rent ,TDS on professional account they ahve ticked only balances in local currency and tax category as star (*) all types tax allowed.
anybody slove my issue?
ArjunHi Mallik Aerjun,
If your client is using deferred tax program (transferring the line item amounts from service tax interim GL accounts to service tax main accounts), while running any transaction (for ex: Vendor invoice) which involves service tax & TDS, system will expect tax category to be there in all gl line items. for this reason the tds gl accounts also to be maintained as tax related.
But its better to maintain * rather than < , >.
thanks & regards,
shashi kanth. -
What is the correct A/C all mapped in Withholding Tax -setup Window ?
Sir,
I want to know the A/C of all Withholding Tax which are mapped in the Withholding Tax - setup Window.
Can u tell me the all correct A/C which r mapped in Withholding Tax window.
I know that A/P and A/R TDS A/C and all further in the table setup are shown but i don't know the correct A/C
mapped to do any Purchase and Sales Process ,which A/c is hit on that Marketing Document.
Plz tell me .....................!
Edited by: jyotasna on May 26, 2011 7:00 AMhai,
You must create some ledgers as per requirements for mapping your TDS,
TDS - Payable Professional Charges
TDS - Payable Contractors
TDS - Payable rent etc, for AP TDS,AP Surcharge,AP Cess
TDS - Receivable for AR TDS,AR Surcharge,AR Cess
for each ledgers there are 4 varieties Invoice company,Invoice Others,Payment Company,Payment Others
Regards
Janeesh -
Calculate 10% TDS on advance rent for vendor related Real Estate contracts
Hi Experts,
In my current RE-Fx implimentation project for a retail client; I need to calculate 10% TDS on advance rent payable to vendor.
What withholding tax configuration needs to be done & maintained to calculate 10% TDS on advance rent for commercial Lease-In contracts?
Thanks
Shantanu KarHi,
There is no special Withholding tax configuration required for SAP RE-FX. All you need to do is check with your FI consultant for all relevant configurations and tax codes created for invoice and payment for section 194I, maintain the tax codes at the vendor master.
At contract creation you have to maintain the withholding tax lines at posting parameters tab by pulling the information from the partner data. The withholding tax will be considered at periodic posting.
Regds,
Hardik Sharma -
Hello,
can anybody provide me with the latest TDS Tax Rates detailsHi,
In India related to Tax Deducted at Source (TDS) - Tax Rate Changes with effect from 1st October, 2009. Following change's are made in tax rate schedule:-
Section Rate Type Old Rate(%) New Rate(%)
194A 1-Standard 20 10
194A 7-Custom or Reduced 20 10
194C 4-SubContract 1 2
194D 1-Standard 20 10
194I 7-Custom or Reduced 15 2
194I 6-Rent: Land/Buil/Fur 15 2
Regards,
Krishna Kishore -
Re: Security deposit against vendor is picking up the tds .
Dear Team,
I am encountering an issue regarding tax calculation ..At the time of periodic posting security deposit is deducting the tds which is incorrect. We are implementing real estate in 4.7.We had pulled the with holding tax through BADI. Please advice how should i restrict the badi for the security deposit.
Note: I had maintained all condition types separately for security deposit and as well normal rent. Please guide us. Thanks for the consideration.
Regards,
Suma.Hi all,
Thanks for responses .I found a solution for this.
Regards,
Suma. -
Hello All,
We have applied note No. 1476590 for the Form 16A as per the latest
notification. However when we are trying to print TDS certificates,
some of the line items of 194C (advance), 194I Rent (advance) and 195
are not getting printed.
Further we have processed (J1INCHLN, J1INBANK) and we have checked in
with_item table the data was updated properly, still the problem
persists. We are unable to print some of the TDS certificates.
Please help us to resolve this issue.
Regards,Dear:
Please refer to the one of my following link
No data selected for printing in production server t.code J1INCERT
Regards -
hi ,
Regards TDS,Can u explain with one example?(step by step how can i do ?)
error: TDS amount is not captured at miro entry
help me
regards
kavihi,
TDS settings are done by FI consultants. the vendor master should have TDS Details in the TAB withholding tax. the vendor that are liable for TDS and the values maintained in vendor master will get defaulted at the time of MIRO.
Country Version India comes ready configured with all the settings you need to track and remit withholding taxes under the following sections of the Income Tax Act, 1961:
· Payments to contractors and subcontractors (Section 194 C)
· Insurance commission (Section 194 D)
· Rent (Section 194 I)
· Fees for professional or technical services (Section 194 J)
· Interest other than interest on securities (Section 194 A) (only supported in the Extended Withholding Tax solution)
Features
Country Version India offers you two solutions for handling withholding tax (also known as tax deducted at source or TDS). You can either use the Classic Withholding Tax solution or the Extended Withholding Tax solution.
If you are installing SAP R/3 for the first time, we recommend that you use the Extended Withholding Tax solution. Before you decide one way or the other, however, you must give careful consideration as to whether Extended Withholding Tax covers your requirements. If you start working with this solution and it transpires that it does not cover your needs, SAP does not offer a strategy for migrating to Withholding Tax.
Taxes withheld under each section are treated differently with regard to the time limits for remitting tax to the authorities, providing the taxpayer with a withholding tax certificate, and filing an annual return. In addition, the formats for the withholding tax certificates and the returns also differ.
The Income Tax Act requires you to calculate taxes as soon as you enter an invoice. However, if you make a down payment to a vendor before you have received an invoice from it, you withhold tax on the down payment. Then, once the invoice arrives, you clear the down payment against it.
When you prepare your annual returns, the act also requires you to make provisions for taxes on services received but not yet invoiced.
Country Version India
Country Version India complements the generic Classic Withholding Tax and Extended Withholding Tax solutions with additional functions that meet the needs of the Income Tax Act. These functions allow you to:
· Ensure that you remit taxes within the due date
· Track and report withholding tax surcharges separately
· Adjust withholding taxes when you clear a down payment against an invoice
· Prepare withholding tax certificates and annual returns
· Calculate withholding tax on provisions
Rajesh -
TDS Change in Billing document
Dear friends
My client has creadted few service order in last month that time 2% TDS.
Current month they have changed the TDS from 2% to 0%.
Client create biling document l for the last month sales order, billing take 2% TDS.
but my client want 0% TDS in bill
kindly give the solution for solve this issue.
Regards
Paul.SHi!
WHT codes means Witholding Tax codes.
These are defined by FI consultant & are assigned to customer/vendors in the respective master data.
for customers - it is maintained in the company code data under the witholding tax tab
for vendors - it is maintained under the witholding tax accounting tab
Example of few WHT Codes are as :
E1 Invoice-Sec 194A-Int other than Security
E2 Invoice-Sec 194C-Contractor
E3 Invoice-Sec 194C-Advertisement Contracto
E4 Invoice-Sec 194C-Sub Contractor
E5 Invoice-Sec 194H-Brokerage/ Comm
E6 Invoice-Sec 194I-Rent
E7 Invoice-Sec 194J-Proffesional Fees
E8 Invoice-Sec-195 Non Resident Payment
EA Payment-Sec 194A-Int other than Security
EB Payment-Sec 194C-Contractor
EC Payment-Sec 194C-Advertisement Contracto
ED Payment-Sec 194C-Sub Contractor
EE Payment-Sec 194H-Brokerage/ Comm
Bascially, Withholding tax is an amount withheld by the party making a payment to another (payee) and paid to the taxation authorities. The amount the payer deducts may vary, depending on the nature of the product or service being paid for. The payee is assessed on the gross amount, and the tax to be withheld (the withholding tax) is computed in that assessment. The purpose of withholding tax is to facilitate or accelerate collection, by collecting tax from payers rather than a much greater number of payees, and by collecting tax from payers within the jurisdiction rather than payees who may be outside the jurisdiction.
Regards
Tejpal Singh -
Dear sir,
if i paid machine rent but i want to be tds calculate from this transaction, please suggestDear,
We do not have any choice for TDS deduction and payment to government sicne these are the statutory issues...
Rule is TDS needs to be deducted at the time of Invoice or Payment, whichever is earlier....to deduct the TDS you will have create invoice and deduct the TDS because if you do not create invoice and make the payment directly, below will be the journal entry...
Rent Dr...
Cash/Bank Cr...
No venodr account is available and hence you can not deduct TDS.....
Regards,
Chintan Joshi -
How many new tax type and tax code are created for change in TDS
Hello Gurus.
we are using SAP since more than one year.
now tDS rate is change , so i would like to know How many new tax type and Tax Code is created in our system
and also like to know At what percentage i will crete that new tax code.
we have pair of tax type and tax code as shown in Example( for Interest) below
Tax type Tax code Name
I1 IC Sec 194A - Interest on deposits
I1 IO Sec 194A - Interest on deposits OT
I2 IC Sec 194A - Interest on deposits Surcharg
I3 IC Sec 194A - Interest on deposits EC& SHEe
I3 IO Sec 194A - Interest on deps EC& SHEe OT
I4 IC Sec 194A - Interest on deposits Pymt
I4 IO Sec 194A - Interest on deposits Pymt OT
I5 IC Sec 194A - Interest on dep Pymt Surcharg
I6 IC Sec 194A - Interest on dep Pymt EC& SHEe
so how namy additional reuire to create new tax type and code more.
i am waiting your reply.
Regard,
Riten patel
Edited by: riten patel on Oct 29, 2009 10:23 AM
Edited by: riten patel on Oct 29, 2009 10:23 AM
Edited by: riten patel on Oct 29, 2009 10:33 AMHello Hansachechani
we have followinng tax key
115O Dividend 115O(1)
192B Salary
194A Interest income other than securities
194C Payment to contractors
194H Commission
194I Rent
194J Prof/Technical services
195 Payment to foreign nationals
206C Tax Collected at Sources (Scrap)
ST Service Tax
and we have followig tax type
C4 Sec 194H Commission Payment
C5 Sec 194H Commission Pymt Surcharge
C6 Sec 194H Commission Pymt EC & SHE Cess
D4 Sec 115O(1) Dividend Payment
D5 Sec 115O(1) Dividend Pymt Surcharge
D6 Sec 115O(1) Dividend Pymt EC & SHE Cess
F4 Sec 195 Foreign Prof fees Payment
F5 Sec 195 Foreign Prof fees Pymt Surcharge
F6 Sec 195 Foreign Prof Fees Pymt E&HS Cess
G1 Service Tax on GTA
G2 Service Tax on GTA E Cess
G3 Service Tax on GTA S&HE Cess
I4 Sec 194A Int on Deposit Payment
I5 Sec 194A Int on Deposit Pymt Surcharge
I6 Sec 194A Int on Deposit Pymt EC & SHE Ce
L4 Sec 194C Contractors Payment
L5 Sec 194C Contractors Payment Surcharge
L6 Sec 194C Contractors Payment EC&S HE Ces
P4 Sec 194J Professional Payment
P5 Sec 194J Professional Pymt Surcharge
P6 Sec 194J Professional Pymt EC & SH E Ces
R4 Sec 194I Rent Payment
R5 Sec 194I Rent Payment Surcharge
R6 Sec 194I Rent Payment E Cess & SH E Cess
So Is it necessary to create new tax key and tax type?
wheather i create new tax code only?
I ma waiting your reply.
Regard,
Riten patel -
I just rented and downloaded a movie from iTunes and now it will not show up in my iTunes library. What do I do?
It DOES show up in iTunes on my iPhone. It DOES NOT show up on my desktop.
Any thoughts? Ideas?
I rented it for a flight I get on in 3 hours. Any quick help would be great.
Thanks.If the computer iTunes is signed into the same account then contact iTunes:
How to report/refund an issue with your iTunes Store, App Store, Mac App Store, or iBooks Store purchase
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