TDS rates wef 01.10.2009

Hi All
How the new TDS rates will be implemented in the system?
If we edit the present TDS rates working in the system, what will be the after effects?
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?
Regards
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
2. For the earlier Tax Type/Tax Code make the "to" date till 30 Sept 2009
3. Assign New Tax Types & Codes to the Vendor Master
if you change the rate of the existing Tax Type / Tax Codes, the system will pop error when you will try to Post / Clear transaction from that Vendors Account.
Hope my opinion helps.

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New TDS rate effective from 1 oct 2009

Hi,
As I am new in SAP can somebody please tell me how to configure new TDS rates in SAP.
As the new rates are effective from 1 oct 2009, I want to know step by step configuration as how many tax types needs to created and what rates to be maintained against them.
Please explain in detail as I don't know much about withholding tax
Thanks in Anticipation.
Regards,
Shruti

Hi shruthi,
Please note the following Points:-
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).
2) With regard to Configuring the same in SAP require a configuration knowledge as well testing the cofiguration setting.
There are Building Blocks available in SAP Library which you can try out.
regards
N.Kumar

Tds rate has been changed for the year 2009-10

Hi experts,
Now my user wants to change TDS rate as per section 194J and 194I.Please advise where i can make change in configuration.
Regards,
Samar

Hi,
Create new tax codes for the new rates.
Regards

TDS rate for Vendor

Dear All,
              As I need to maintan TDS rate as per requirement of user and requirement is as follows,
Vendor Name           CMS Info Systems Pvt Ltd
PAN                    AAMCS2311K
Vendor Code               5314
Rate:                NIL
Certificate No.          ITO(TDS)-1(2)/Cer.-108/2009-10
Date to which the same should be exempt 31.03.2010
Can anybody help me out.
Thanks in advance.
Regards
AJIT K SINGH

Hi
You can maintain these information in vendor master in CIN tab.
CIN tab is activated based on user ID,
If CIN tab is not activated in your ID, then ensure to check in following path and activate it
SPRO - Logistics general - Tax on Goods Movements - India - Master data - Assign users to material master screen sequence for excise duty and then in that screen, select the relevant reference and click on third tab user screen reference and enter your user id. Once it is saved, then you can view the CIN tab in your vendor master and you can maintain the relevant details like TDS number, PAN number etc. in that tab.
Hope this helps.

Tds rates change_ vendor updation

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.
Kindly help
Rama

Hi
In my case, the new WHT type/code configuration is not live yet. So invoices/payments are using the old TDS rate.
With respect to executing RFWT0010, I have the following issue:
1) Vendor invoice posted on 05th Oct with old tax rate.
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.
2) Downpayment made to vendor on 10th Oct with old TDS rate - still open.
This document is NOT being selected by the report RFWT0010.
Hence WITH_ITEM table stores the old TDS amount.
On executing J1INCHLN, the system picks the old TDS rate for remittance!
Why does RFWT0010 exclude Cleared invoices and open downpayments?
Thanks
Gayathri

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

TDS Rates

Hello,
can anybody provide me with the latest TDS Tax Rates details

Hi,
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

TDS Rate Change

Dear SAP Gurus,
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.
Regards,
Sonali

Hi,
Regarding the Secondary cess in TDS certificate,kindly note that of now there is NO legal requirement to show the secondary cess separately in the certificate nor the quartely return. The secondary cess will be clubbed with the existing education cess. Make sure that you have maintained the table entries as under:
1. If you have separate tax codes for Surcharges, J_1IEWT_SURC table should be maintained, by setting the checkbox checked, for the company code. Those tax codes should be available the J_1IEWTSURC table (use SM30 to maintain these values)
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
available in J_1IEWTSURC table and vice-versa.
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
maintained in J_1IEWTECESS table and vice-versa.
Make sure that in the table for surcharge you have only the tax types relevant for surcharge AND DOES NOT CONTAIN TAX TYPES RELEVANT TO BASIC TAX AND CESS AND Make sure that in the table for ECESS you have only the tax types relevant for ECESS AND DOES NOT CONTAIN TAX TYPES RELEVANT TO BASIC TAX AND SURCHARGE
If you have configured secondary cess seperately,i.e a seperate tax type and code for secondary cess, kindly make sure that you have applied the steps and the code corrections given in the note 1097621.
By applying the above note no 1097621 a separate field for secondary cess gets opened in table J_1IEWTECESS and u201CYu201D to be maintained against the secondary cess withholding tax type and for education cess it should be BLANK. Use transaction code SM31 to maintain the above.
Regards,
Sadashivan

TDS rate difference

Hi,
My client is having an issue, since we have configured tax codes for a particular vendor at 2% rate and accordingly my client has deducted withholding tax from vendor payment at 2% but actual rate is 10%. Now he is asking us to define new tax code with 10% rate and also he wants us to make adjustment for previous bill TDS difference. Pl. suggest how to adjust deficit deduction.
Thanks in advance

Hi,
Please Try through Tcode J1INJV.
Regards
Aditya

Changes in TDS slabs - w.e.f. 01.10.09 [Financial Year 2009-2010]

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

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 AM

Hello 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

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Exchange rate difference in goods receipt

Hi all,
can I manage in the goods receipt (transaction MIGO) the exchange differences with the purchase order?
For example:
Oda $ 1000 - exchange rate at 10.04.2009 $ - Euro 1.27
Oda total in Euro 1270
when I post the goods receipt after 20 dayt (30.04.2009) - the exchange rate has changed to $ - Euro 1.31
In the document accounting of goods receipt is also possible to manage the exchange rate difference?
thanks.
best regards, Gaetano

Hi
It is not posible to enter the prevailing exchange rate during GR or any kind of entry duriing entry for exchange. If you are a maintainting the table in OB08 for the indicator M then it will pick the last exchange rate from the table during GR. If you wish to change the do it IN PO header and fix it before carrying out GR for the PO. Document settings & behaviour for exchange during GR and other activities can be controlled by means of the indicator assignment in OBA7. You can always adjust the rates in MIRO also manually.
Regards

Wrong calculation of TDS (With holding Tax)

Hi Gurus,
I have matained TDS rates as follows - CA - 1%(Basic), CB - 0.1 (sucharge), CC - 0.022 (Edu. Cess), CD - 0.011 (Sec.Edu.Cess).
I have assigned these same codes for some of the vendors. For all the vendors it is calculating TDS as rates maintained. But we are having one vendor against which we are not able to calculate the Education cess & secondary education cess. It is deducting only basic WH tax. Also the amount of deduction is wrong.
I have checked all the setting. Please let me know any other solution for this problem.
Thanks
Sonal

Hi,
If I run this programme in the production, then will it going to affect anything in our production system?
Please let me know can I run this programme in the production directly?
Thanks
Sonal

TDS on Advance payment

TDS deducted on advance get reversed when we clear advance with invoive. but how the system should work in case there is a change in the rates of tds deducted between the two. For example, Advance made in march for Rs 10000, tds deducted @ 10 % 1000.
Now Invoice come in April for 30000/-, rated for TDS got changed (by budget) from either to 15% or 5%. We have made the approipriate tax codes and assigned them to the vendor master. But at the time of invoice processing TDS is deducted on whole 30000 @ either 15% or 5%.
Invoice                    15 %                 5%
TDS                     4500                   1500
F-54, Clearing of advance agt. Invoice, TDS will be reversed           1000                                         1000
Net TDS             3500                                         500
This is how system respond.
However, what should happen functionally is
Advance posting                                                                        1000                                         1000
Invoice [ 30000-10000] 20000                                                     3000                                         1000
Total should be                                                                          4000                                         2000
I have checked JV, etc. but nothing is giving appropriate answer, Pl suggest on that.

Hi
It probably depends on when the service is rendered. Was it rendered last year or after the TDS rate change?. Depending on that, TDS should be calculated. However it is reasonable to assume that service is rendered upon submission of Invoice. In that case, what the system does is correct. ie using the new tax rate of 15% or 5%, as per your example
Jayaram

TDS rates wef 01.10.2009

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