With holding Tax for Interested paid to bank

Dear Gurus,
User making payment to bank ( which include interest), he want to withheld TDS @22.44% on interest amount.
How we can map into SAP.
Regards,
Venkat

Hi,
First you have to create the withholding tax type i think 194a, after that create the withholding tax key Rate, then you will link up the withholding tax type and keys.
you will goto this path Spro>Financial Accounting Global settings>Withholding tax>Withholding tax>Withholding tax.
in this path you will maintain all the properties.
it is helpful give me reward points
Thanks
gvr

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OBWW - Define Accounts for With Holding Tax to be paid over

Hi All
I am unable to activate Rules and assign accounts in TCode OBWW (Define accounts for with holding tax to be paid over) as the screen is greyed out.
Please guide me
Rgds
KIM Khan

Hi
You may in the same screen in another window.
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Murad

Optional With holding tax for a vendor

Dear All,
I want to make the with holding tax optional during MIRO.
I have already assign the tax code in vendor master and so it automatically deduct withholding tax.
But my vendor is a supplier as well as a broker for me. So when i want to pay him Brokerage I want automatic tax deduction which is happening but when i want to pay him for the material which he supplied to me also the tax get automatically deducted.
Can any body help me on this?
Thanks & Regards,
Rakesh

Hi Milind
Appreciate your prompt response, I am looking for information on what needs to be done for implementing with holding tax for Puerto Rico, May be I was wrong when I said I could not find any links on this subject either in SAP Help or else where. What I could not find was Information specific to Puerto Rico withholding tax. We normally have lots of information on WithHolding tax in SAP help and else where on the net.
I am looking for information specific to WithHolding tax for Puerto Rico.
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How to calculate with holding tax for the open item

Dera all,
Can you tel me how to simulate with holding tax for the open item? i will try do it using FI_WT_F110_CALCULATE FM but it dosnt work. plz help me
regard
nawa

Hi Sushil,
can you please elaborate on how you resolved it. we are facing the same issue with BAPI not calculating the withholding tax data.
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Sanket

Change with holding tax for vendor

Hi all,
I have a requirement of chnaging withholding tax for exisitng vendor. Is it possible to achive this using any function module or BAPI and ateast by BDC or LSMW ??
Best suggestions will be rewarded with points.
Sivaprasad

Hi Sivaprsad,
You can change the with holding tax data by using BDC. because, it having table control, so it's easy to update code in BDC.
Hope, it will help you.
Thanks,
Poonam.

India -With Holding Tax - Changes As per the Budget Approval

Dear All
Many of you are aware, there will not be any surcharge, education & higher education cess for with holding tax in Indai from 01.10.2009.
Our client is operating seperate tax codes for Basic Duty, Surcharge and Education Cess. We have change the configuration and maintained 0% in the formula for calculating with holding tax for surcharge and education cessand we have maintained with the validity from 01.10.2009
(ie., The above solution we thought because, we wish to maintain the same tax code and with out modifying the vendor master)
Now, the system is working fine for all the scenarios, except the transfer of the old advances from special gl indicator to normal line item through T.Code (F-54). Under this T-code, the system is reversing only basic duty at old rates with out surcharge and cess.
Kindly suggest the solution to reverse the surcharge and cess while doing F-54 with the posting dates as 01.10.2009 onwards
Regards
Anilkumar

Please go through the SAP note 1359268 for budget changes
also see the 1369775,1371380,1372734 for your exact requirement

With holding tax base amount for 1099 vendors with discounted payment term

Hi Friends,
We have a below situation for 1099 vendors,
Some of the 1099 vendors are set-up in the system with payment term with discounts i.e. 2% if paid within 10 days
As per config, system posts with holding tax base amount at the time of posting payment.
With holding tax rate is 0%,
Based on modified net amount calculation
and
Cash discount calculation before w/tax calculation
When we have vendor with input tax, system excludes tax amount at the time of payment but for the with holding tax base calculation amount system does not exclude input tax type.
Which causes difference in 1099 misc vendors
Below is the example of how system calculates the amount.
Invoice $ 1000, payment term 2% if paid within 10 days. Input tax 7.25%
Payment going out=
$1000- $ 72.5(tax 7.25%) = $ 927.5 18.55 [2% discount] = $ 908.95 (payment amount)
With holding base calculation =
$ 1000 100 (2% discount) = $ 900
Difference between payment going out and with holding tax base = 908.98 900 = 8.98
Can some one please tell me how to get rid off this difference?
Moreover, please tell me if its normal to have 1099 vendors with discounted payment term.
Any thoughts on above situation will be helpful
Edited by: Shefford William on Jan 28, 2008 11:36 PM

Dear All
i am also having the same problem. The example is
Net invoice Value   = $ 100,000
Input Tax @ 15%   = $ 15,000
Total Invoice Value = $ 115,000
Cash Discount = 20% with in 20 days
On payment the system behavior should be
Debit Vendor invoice Value   = $ 115,000
Debit Cash Discount @ 20%    = $   20,000   ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit W/H Tax deduction @ 3.5% = $ 3,325 ( 3.5% of 95,000 the Inv Value - Cash Discount that is $ 115,000 - $20,000)
Credit Bank Account = $ 91,675 ( Inv value - Cash Dic - W/H tax that is $ 115,000 - 20,000 - 3325 = 91,675)
However at the time of payment system is calculating tax as follows
Debit Vendor invoice Value   = $ 115,000
Debit Cash Discount @ 20%    = $   20,000   ( 20% of the Net Invoice Value that is 20% of $ 100,000)
Credit W/H Tax deduction @ 3.5% = $ 3,220 ( 3.5% of 92,000 the Inv Value - Cash Discount that is $ 115,000 - $23,000. This $ 23,000 is only calculated for W/H tax calculation that is 20% of $ 115,000 )
Credit Bank Account = $ 91,780 ( Inv value - Cash Dis - W/H tax that is $ 115,000 - 20,000 - 3220 = 91,780)
this is not the common practice when using the net base value in the system.
Can any one help me in this regard. I really have been stucked in this problem for many days
Regards
Bilal Athar

How to creat the Varient for 1099MISC With Holding Tax

How to create the Variant for 1099MISC With Holding Tax ?

HI,
please follow the below steps to create variant at report.
tcode se38
report RFIDYYWT
pass all the parameters
press save icon
give variant name
retrive the variant in report
tcode se38
report name RFIDYYWT
press : shift + F5
or get varinat icon.
I hope above will resolve your issue.
Regards
Madhu M

Regarding the Grossing up Method for With holding Tax

Hi
I am implementing SAP ECC 6.0. I am having a specific requirement with regard to With holding TAX. If i configure the WT, the tax amount will be deducted from the invoice & posted to a separate GL account. But in My case, the WT amount should be posted to a GL Account and the amount should not be deducted from the vendor account.
This arises in case of foreign payments

Try following this guide for Defining Withholding Tax Formulas
http://help.sap.com/saphelp_erp2004/helpdata/en/7b/5d823ae35c3769e10000000a114084/frameset.htm
and this one Defining Withholding Tax Types and Withholding Tax Codes
http://help.sap.com/saphelp_erp2004/helpdata/en/8e/5a823a89569e68e10000000a114084/frameset.htm
This may help you!

Form for with holding tax

Hi guys,
What is the form for with holding tax? I am working on TDS print certificate. Here it is given as J_1IEWT_CERT. But this is not a form, it is a report.
Can you help me please?
bye
Kiran

Hi kiran,
try this script for withholding tax HR_TH_TAX_50B_04.
Regards
Saurabh

With holding tax code for posting while caluclation step

Hello gurus,
can you let me know in the configuring check boxes what i have missed out,
while posting vendor invoice i am not able to get the tax amount and net invoice amount.
thanks
Pranam

hi,
check in your config if u have put tick mark under the tab With holding tax posting i.e posting with payment.
this will make you to calculate and post the tax amount during payment.
thanks
G.Bharathi

With holding tax Returns

Dear Sapgurus,
we are using 2 different with holding tax type one is at the time of inv posting and 2nd is payment posting which is earlier, we had created tax types and tax codes we assigned in vendor master assgined to company code and automatic posting also, finally if any vendor pay advance then we calculate tds it will post to tds g/l account, after that in sap any option how to file the tds returns.
Regards
Veeru

Dear,
Once you have posted TDS then usually at the month end you will run below transaction to complete the process..
1. Use transcation J1INCHLN (this will club all TDS posted per section and paid)
2. Use transaction J1INBANK (when you make TDS payment in Bank then bank will give you challan number which you have to update in the system)
3. Use transaction J1INCERT (this will print the vendor certificate (this is usually an year end practice)
4. Use transaction J1INMIS (this will provide consolidated report for TDS)
Regards,
Chintan Joshi

WITH HOLDING TAX ON DOWN PAYMENT

HI
I am using TCode F-47 for down payment request to be paid to vendor. In Vendor Master Record with holding tax information is activated. But at the time of processing payment against down payment request using TCode F-58 With holding tax not deducted and full down payment requested amount getting debited to vendor.
Pl suggest me
Message was edited by:
Chandrakant.K Acharya

Hi Chandrakanth
u check once WHT settings at WHT type for Payment posting.here you remove inherit base option. for Cess claculating on TDS.
you check once define WHT codes for cess. here you calculate for 1% cess 0.022 % on TDS base amount or invoice amount. ex: inv: 100 , TDS 2.2 %. Cess 1% on 2.2% means 0.0220. like that you calculate.
Then you update cess tax codes in FK02,here u select liability option.
Then you can use f-47. here system showing popup with Base amount,TDS & cess codes.then you save it.
now you check with f-58. other wise you want temporly solution. go to FB02 change doc. there you can modify WHT amounts then save it.
ok all the best
Raj

With holding tax decuction from T.Code F-02 with out sp. gl indicator

Hi All,
While making the payt to service vendor my client do not want to use the functionality of advance payt, which can be performed through T.code F-48. They wants to treat this advance payt as a normal payt to vendor but they want to deduct the with holding tax from this payt.
I have tries to use T.code F-02 with posting keys 25 Dr Vendor & 50 cr Bank. But when i am using this posting key for vendor (i.e.25) System gives me warning message saying with holding tax information is ignored & system do not deduct TDS from the payt made to vendor.
But when i am using PK 29 with sp gl indicator A for advances from T.Code F-02 system allows me to deduct the with holding tax against vendor paytment.
Please guide me how to duduct the with holding tax from vendor payt. without using sp. GL indicator for advances.
Thanks
Sonal

Hi
why ur clien not want advance paymeny through Special GL, what is the issue/purpose
see TDS deducted at the time of Advance payment and at the time of invoice
when u use F-02 for TDS deduct of vendor without using special GL and u useing 25 vendor and 50 bank
in this case tds not deducted here vendoir is debit but withouse advance indicator
becuase u given vendor advance , but in this case entry not showing advance or
in SAP Standard system TDS deducted of advance payment when u using 29 posting key for vendor this is stsndard key of advance vendor
so convience ur clien u use Advance payment method with Special GL, if they not agree then ask what is the purpose u not using Speacial GL through Advance paument
if any query, revert back
Regards
Roobal

With holding tax amount exceeds the cutomer/vendor line item amount 001

Hi Guru's,
I have an issue, is there any impact to change the withholding tax base amount 20% instead of 10%.When I change the base amount to 20% and post a document system return error message
"With holding tax amount exceeds the cutomer/vendor line item amount 001".Guide me on this issue.
And tell me the impact of previous open item documents.
Regards
Maruthi.

Thanks for all,
MY problem solved.
Regards
Maruthi

With holding Tax for Interested paid to bank

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