TDS rate changes, effective 1st Oct'09

Dear All,
We are planning to create new TDS codes for New TDS rates which will be effective from 1st Oct.
- Using LSMW to upload the TDS codes
- Not deleting old codes which are already assigned to the master
After updating new tax codes for already posted docs with old codes (not paid), as we are getting 'Inconsistent withholding tax' error during payment run, we have to run program - RFWT0010 to update the new tax codes in the documents.
I have two questions here
1. Is there any better way of making tax rate changes in the system?
2. Is there any standard transaction code for this program as user has to run this after updating TDS codes and we cannot give SE38 access to him?
Regards,
Gangadhar

Hi,
Thanks for your reply.
Firstly, we considered this option. But Surcharge is getting changed(no surcharge in many cases). We are maintaining surcharge rates per each WTX type and we are taking TDS certificate printout quarterly.
As per your suggestion, we have to maintain a new rate in the path given and maintain 0 surcharge for TDS codes on 1st Oct(table - J_1IEWT_SURC1). How do we maintain tax type wise old surcharge rate, if we have to take certifiacte print for Sep quarter in October.
Please clarify.
Regards,
Gangadhar

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TDS Rate Change

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Now that the Surcharge and Cess has been removed from TDS Codes as per Govt regulations, we have removed the same from the system. But the system is recalculating the TDS for the Current Year and posting the differential TDS amount in any new Invoice posted. As per Govt. regulations, the Surcharge and Cess Exemption rate is from 1st Sept 2009. So how can we restrict the system from recalculating the TDS amount in the new Invoices.
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2. If you have a combined tax code for surcharges, then the tax rates should be maintained in J_1IEWT_SURC1 table. Make sure that tax codes available in J_1IEWT_SURC1 table are not
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3. If you are using separate tax codes for Education cess, those tax codes should be maintained in the J_1IEWTECESS table and 'X' should be maintained for the company code in J_1IEWT_ECFLAG table.
4. If you are using combined tax codes for Education cess, tax rates should be maintained in J_1IEWT_ECESS1 table. Make sure that the tax codes available in J_1IEWT_ECESS1 table are not
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As I am new in SAP can somebody please tell me how to configure new TDS rates in SAP.
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Your Question contain 2 Parts.
1) Functional Knowledge
2) Applying the functional Knowledge in SAP.
for the above my suggession is as follows:-
1). Find out the reliable source from which tax rates are available (It may be through any registered website or through any ready recoknor tax Books).
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Tds rate has been changed for the year 2009-10

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Now my user wants to change TDS rate as per section 194J and 194I.Please advise where i can make change in configuration.
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Hello,
can anybody provide me with the latest TDS Tax Rates details

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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
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Hi All
The new rates for TDS has came in effect from 01.10.2009. I have created the required tax codes.
here in our company we are using a different set of tax for basic tax then surcharge and then education cess and finaly l higher education cess.
My problem isthat I want to know how the withholding tax changes will be uploaded to vendors at mass level..
Our vendors are alteast 1000 in no. which needs to be changed?
Is the change to be taken manually or through LSMw or through BDC.
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In my case, the new WHT type/code configuration is not live yet. So invoices/payments are using the old TDS rate.
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The same has been paid and cleared on 15th Oct.
Now when i execute RFWT0010 (with Doc. adjustment for relevant withholding tax types by 31.10.2009), the report does NOT select this invoice.
I feel that the invoice should be selected, so that the increase/decrease in the TDS rate is accounted with offset going to vendor.
This will ensure that I remit the correct TDS amount to the govt.
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This document is NOT being selected by the report RFWT0010.
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What is standard SAP recommendation on this issue?
What is the best approach to edit the vendor masters since there are large no. of vendors getting affected?
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Rama Swami

Dear,
i had earlier shot this query around Sept 25 2009.
Forum's Experts opinion says :
1. Create a New Tax Type with New Tax Code wef from 1Oct 2009 to 31 Mar 9999
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No i want system to pick diffrent exchange rate so i want to change exchange rate type for 1st Local Currency.
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heloo,
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Vasanth.

How to deal with Tax Rate Changes

Dear All,
Suppose we have one tax code XY with tax rate 10.30 %.
And after budget it gets changed to suppose 12.36% from 10.30%, so in that case how to deal with this situation.
Do we need to create new tax code or we should do the changes in existing tax code.
Also if we have open PO's with old tax code, what will we the effect in those PO's for both the cases (with new tax code or changes in existing tx code).
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Vijay

Dear All,
Suppose we have one tax code XY with tax rate 10.30 %.
And after budget it gets changed to suppose 12.36% from 10.30%, so in that case how to deal with this situation.
Do we need to create new tax code or we should do the changes in existing tax code.
Also if we have open PO's with old tax code, what will we the effect in those PO's for both the cases (with new tax code or changes in existing tx code).
Thanks
Vijay
If you change the existing tax code, all the open POs with the old tax rate will be changed to the new rate. So. if any of your vendor gives an invoice with reference to an open PO with old tax rate (Invoice raised before tax rate change and received at your place after tax rate change) you will not be able to make the GR due to tax rate difference. So, before changing the tax rate, make sure that there is no old invoice pending to do GR or IR and also there is no material in transit.
If you are creating a new tax code, you can create new POs and receive the material based on that POs. If any material received against the old POs you can post with old tax rates. But, discuss with your FI person of there is any issues regarding statutory requirements with Excise / Tax authorities.

Courrency Conversion rates changes everyday for soem Accounts

Hi All,
I am working on Hyperion Essabe 9.0.1.
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Hello Experts,
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Hi Devesh,
Thanks for the inputs you share. I have gone through the link and found that it is still under development.
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TDS rate changes, effective 1st Oct'09

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