Withholding tax calculation on Expenditure document

Hi all of you,
We have a scenario where direct expenditure entry could be made with out the vendor invoice i.e.
Courier Charges A/c Dr.
Service tax Receivable A/c Dr.
To HDFC
To TDS Payable A/c
My client is asking to calculate the W/h tax on the expenditure line item and he is asking to include the items in remittance challan and as well as Form 16a and to be included in E-TDS quarterly return for the corresponding vendor.
I think W/h tax calculation is purely dependent on the vendor line item only as we do assignment in the vendor master. How is it possible in SAP?
Please help me out.
Thanks & Regards
Ramki
Edited by: Ramki on Apr 17, 2009 11:56 AM

Dear Rams,
SDNFICO is right.
If You want to have the following posting:
Itm PK Account    Account short text   Assignment         Tx           Amount
1 31 100214     indian vendot                                                    1.000,00-
2 40 444444     Consumptn, raw mat.1                                     1.300,00
3 50 177000     Withholding tax                                                    300,00-
You have to manipulate Your wt code changing the WHT tax rate and use 23.08%
IMG --> Define WT Codes --> double click on Yours:
Percentage subject to tax     100,00 %
With/tax rate              23,0800 %
there is no other option at all.
I hope this help You.
Mauri

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Withholding tax calculated including transactional tax.

Hi
can any one send me the documentation for Withholding tax calculated including transactional tax.
thanks
[email protected]
Edited by: Prashant on Apr 28, 2008 8:04 PM

Hi
By default the system will calculate Withholding Tax for whole amount, if we want to change the value of Tax we have to manually change the Withholding Tax Base amount in the Withholding Tax tab of the Document Entry Screen and Change the Base amount to the amount for which the Withholding Tax has to be deducted then the system will calculate the Withholding Tax for the Base Value entered by us.
Regards
P Rajan

Delete Withholding tax info in cleared document

We recently made the change from classic to extended withholding tax. I've been able to successfully run RFWT0010 and RFWT0020 when the withholding tax in a vendor master record was changed. However, we have several vendors the were marked as 1099 vendors (non employee compensation) that really are not subject to withholding tax. I've removed the withholding tax data in the vendor master record, but the documents still contain the withholding tax information, even after I've run both RFWT0010 and RFWT0020. I've opened up those fields to be changed in document settings already. Is it not possible to delete or remove withholding tax from the document unless I do it manually through FB02?

We had the same problem. There is no SAP delivered tool like RFWT0010 and RFWT0020 that will work to delete withholding tax data from cleared documents. However you can create a CATT script for transaction FB09 which will work to do this. I used SE16n to gather the needed information which is document number, Line item number and fiscal year. I uploaded the relevant vendor numbers into the query screen for table WITH_ITEM
I chose the relevant fiscal years, tax type FE, tax code not equal to blank, base amount not equal to zero, i chose to display all those plus line item number document number, vendor number, We only have one company code so that was not relevant for me.
I then copied that list into my Catt global variant spreadsheet and away I went. I would worn you about reversal documents you might want to exclude those. I would create a Variant for these selections as well
Good luck
Also if it doesn't really matter what the historical line items say. I had the users simply exclude those vendors from 1099 selection criteria

F-04 Withholding tax calculation

Dear All,
In Tcode F-04 (Transfer Posting with clearing) i am using Posting key "31" for Vendor Credit AMount.
Here, I am not able to calculate automatic withholding tax amount
Withholding tax data is already maintained in the vendor's master data.
Withholding tax calculation is possible with other Tcode like FB60...
but With F-04 it's not calculating.
How to calulate withholding tax amount.
It it something configuration problem .
Pl suggest me some solution.
Regards
Swati

For E.g
My Client wants the system to calculate Withholding Tax on purchase of Air Ticket from his Agent
Travel expenses                                               xxxxx
Vendor - Air travel agent                                              xxxx
Note 2 : WHT collected by the vendors on purchase of the air ticket and recorded as an asset for onwards claim from Tax Authority.
The system simulates the following accounting entry: (Payment)
Vendor                                                                                XXXXXX
               WHT Asset**                                                                  XXXXXX
               Bank                                                                               XXXXXX
In This Case this entry is not Correct . It should be
Vendor                                                                                XXXXXX
                WHT Asset                                                                                XXXXXX
                Bank                                                                                XXXXXX
Hope you got my requirement
Edited by: MAZ on Sep 27, 2010 3:18 PM
Edited by: MAZ on Sep 27, 2010 3:56 PM

Withholding tax calculation @ Customer payment

Hi
Experts, can any one help me on this issue??. I want to calculate and post withholding tax for a customer at the time of incoming payment(F-28). I have already activated extended withholding tax, defined tax type, tax code, & assigned in the customer master data. But system not calculating the tax nor its displaying tax code in the payment screen, & throwing a message when I double click on the relevant tax column ie " withholding tax information missing from line item" I f someone could throw a light on this, it would be a great help,
Thanks in advance
Hariharan.

Kindly check
1. Define witholding tax type for invoice posting
IMG > Financial Account Global settings > Withholding tax > Extended Withholding Tax > Calculation > Withholding Tax type > Define Withholding Tax Type for Invoice posting
2. Define witholding tax type for payment posting
IMG > Financial Account Global settings > Withholding tax > Extended Withholding Tax > Calculation > Withholding Tax type > Define Withholding Tax Type for Payment Posting
and also check OBWW (Define account for w/h tax)
rgds.

Withholding tax calculated by line item

Hi all,
I am trying to test the withholding tax for vendors. My question is, if the invoice has many line items, and not all line items are subject to withholding tax due to its transaction nature, is it possible to select which items are applicable for withholding tax and let the system calculates the withholding tax by the line items? If yes, how do i do that as my understanding is, the withholding tax is at header level.
Thanks.
Regards,

Hi
By default the system will calculate Withholding Tax for whole amount, if we want to change the value of Tax we have to manually change the Withholding Tax Base amount in the Withholding Tax tab of the Document Entry Screen and Change the Base amount to the amount for which the Withholding Tax has to be deducted then the system will calculate the Withholding Tax for the Base Value entered by us.
Regards
P Rajan

Withholding Tax Calculation Error for Vendor Down Payment Clearing:Oct '09

Hi,
We are trying to incorporate the new Withholding Tax Structure w.e.f. 01-Oct-09.
There were 3 scenarios possible:
a. Invoice = Down Payment
b. Invoice < Down Payment
c. Invoice > Down Payment
While 1 & 2 were taken care of effectively, the third scenario did not work as expected. The scenario is as follows:
1. Down Payment (Date : 30/09/09)
Amt : Rs. 40000/-;
Withholding Tax @ 15% : Rs. 6000/- (40000 * 15%)
Surcharge @ 10% : Rs. 600/- (6000 * 10%)
Edu Cess @ 2% : Rs. 132 (Rs. 6600*2%)
Higher Edu Cess @ 1% : Rs. 66 (Rs. 6600*2%)
2. Invoice (Date : 02/09/09) - As per new TDS Rates
Amt : Rs. 50000/-
Withholding Tax @ 10% : Rs. 5000/- (50000 * 10%)
Surcharge : NIL
Edu Cess : NIL
Higher Edu Cess : NIL
3. DPC (Date : 02/09/09) - Reversal of TDS calculated in Down Payment (Step 1) above.
Issue:
While making J1INCHLN, amount is adjusted as Rs. -1000/- (hence zero) not payable.
Also, the Surcharge, Edu Cess & Higher Edu Cess are also getting reversed in DPC.
As suggested by SAP Note No. 1372734 - Handling of downpayment clearing scenarios after budget '09, the scenario does not seem to work.
Actual payable should be worked out as under:
Invoice : Rs. 50,000/-
DP : Rs. 40,000/-
Bal : Rs. 10,000/-
TDS @ 10% : Rs. 1,000/-
All TDS Challans, Certificates & Returns must reflect Rs. 1000/- in the Challan.
Require assistance.
Regards,
Kapil Tilwani

Hi Kapil,
The following needs to be taken care of -
The message controls settings as the note suggests must be set as W.
When entering the details the logic is Vendor Debit amount is Tax amount + 1
The Vendor credit line, the tax code has to be assigned with the advance amount (amount for which the challan has been created) as the tax base amount and the tax amount will be the extra liability that needs to be created.
In your example -
The tax amount will be - 2000 ( the debit at the time of downpayment clearing should have been 4000 instead of 6000)
Tax base amount - 40000 (Challan for this amount has already been made at the time of downpayment made)
The vendor Debit - 2001 (2000 + 1)
The vendor credit - 1
Note - Tax amount and base amount has to be made manually in the withholding Tax tab for the credit entry.
Please revert for any clarification.
Thanks and Regards,
Anit

Vendor Withholding tax calculation

Hello
The vendor has been assigned with withholding tax code for billing type and payment type.They both are activated.
At the time of Invoice withholding tax has been calculated and also at the time of payment also withholding tax has been deducted.....
what is the solution for this...
regards

Hello
In our case withholding tax is defined for invoicing and payment type for both.......so system will calculate on whichever is earlier.....
here its deducting at the time of invoicing and also at the time of payment......at the time of payment the line item for withholding tax comes in display mode......because of thst not able to make that amount equal to zero...
regards

Withholding tax calculation with formula base problem

Dear all,
I maintained some formula depend on client requirement. for example:
up to 200,000.00 no withholding tax
2 lax to500,000.00 <1.00 %> tax
5 lax to 1,500,000.00 <2.50%> tax 1.00 % Reduce on 500,000.00 base amount
15 lax to 2,500,000.00 < 3.50 % > tax 2.50 % Reduce on 1,500,000.00 base amount
25 lax to 3,000,000.00 < 4.00 % > tax 3.50 % Reduce on 2,500,000.00 base amount
30 lax to 99,999,999,999.00 <5.00 %> tax 4.00 % Reduce on 3,000,000.00 base amount
Like this i maintained slabs in formulas for calculating withholding tax. depend on this formula up to 2 lax their is no tax. after crossing 2 lax up to 5 lax 1% tax
in this case tax will calculate based on total vendor invoices. But hear it is calculated on present invoice based only. for example i posted 2 invoices with amount 2 lax. it means i reached 1st slab up to 2 lax no Tax. system also calculated like that only. but when i try to post another invoice with amount 3 lax system is calculated 1% tax on 3 lax amount only. but already i posted 2 lax invoice in vendor account. system not considered this amount.
*but actually in this case i want to calculate 3+2= 5 lax * 1% tax . but hear my system is not consider previous invoices .*
Please do need full help.....
Regards,
Krishna Valeti
Edited by: chaituvaleti on Sep 9, 2011 8:51 AM
Edited by: chaituvaleti on Sep 9, 2011 8:54 AM
Edited by: chaituvaleti on Sep 9, 2011 9:02 AM

Can you please share the information to us, it will be a great information to us , thanks in advance.........

Base amount for tax calculation in billing document

Dear Experts,
Can you help me in this scenario
when i create a billing document
Selling Price :74,766.36
Output Tax: 5233.65
Final Amount: 80,000.01
the total should be 80,000 in this case as per customer PO.
the actual difference is coming from Tax rounding off done by SAP.Initially we added DIFF condition to adjust the Tax amount.
But it is affecting the Output VAT report, where it shows 0.01 values. business does not want that, so we added DIFF condition to Selling Price.
Net                 74,766.35 THB
Tax                  5,233.65
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01 8000485 Custome. 80,000.00
50 2100100 Revenue Gds - Dom 74,766.36-
50 2623600 Output Tax 5,233.65-
40 2100100 Revenue Gds - Dom 0.01
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    5,233.65-          74,766.36-           O7    7.000
           Output Tax rate 7%
Is it possible to change the base amount for tax calculation to include DIFF value?
Can you please advise? If i maintain Tax condition at header level, does this solve it.
Regards
Pradeep

Hi,
Please check your condition type settings for Rounding Rule
may be it is marked as commercial
mark as B and check it might work

No Withholding tax calculated when the work area is changed

Hi All
I have changed the work area in infotype 208 for an employee from OH to IL. Then i ran the payroll, but no withholding tax for IL was calculated. The employee residence area is IN.
Any inputs on why its not calculated ?
Regards
Vamsi

Hello Yogesh,
Thanks for your reply!!!
We have solved the issue.
the issue is really due to after 7.3 Upgradation the RSPC_MONITOR had two more new feilds added
1) UNAME & 2) CHECK_TIME
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With Regards,
PJ.

R12.1.3 AP Module Rounding Difference during Withholding Tax Calculation

Problem Summary:
Figures does not “round” While we make a payment for multiple withholding tax invoices in one go.
For eg
We pay Withholding Tax to a Tax Authority in one go @payment time.
In this scenario there are 3 invoices which needs to be paid through 1 payment.
When we make a payment for these 3 invoices the amount becomes 6515.52. This is a wrong figure. The figure should be rounded to 6516.
Invoice No Invoice Amount
INV1 5312
INV2 253.4
INV3 950.12
Total Payment Amount for these invoices i.e 1 Consolidated Payment which Oraclegenerates is 6,515.52 .
Expected behavior:
Instead of processing a payment of 6516, the system is generating a payment of 6515.52. which we don’t want.
We want system to generate a payment of 6516.
In order to arrive at the figure of 6516
Oracle says we have to customize AP_CUSTOM_WITHHOLDING_PKG....... in that package following SPECIAL ROUNDING SCRIPT NEEDS TO BE UPDATED.....
In order to get the following results; for instance;
eg----IF FIGURE for INV 1 IS ------ 100.51 MAKE IT 101
eg IF FIGURE FOR INV 2 IS --------100.50 MAKE IT 100
eg IF Figure FOR INV 3 is --------100.49 MAKE IT 100
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procedure Ap_Special_Rounding (P_Checkrun_Name IN varchar2)
is
--l_org_id NUMBER(15); -- BUG 7232736
BEGIN
-- BUG 7232736 : added select ot get the Org_id using checkrun_id (p_checkrun_name)
-- select org_id into l_org_id
-- from ap_checks_all
-- where checkrun_id = P_Checkrun_Name;
-- IMPORTANT: This section is reserved for Globalization features.
-- Please do not modify code here.
-- BUG 7232736 replaced sys_context with g_zz_shared_pkg.get_product/reverted to Orginal code.
IF sys_context('JG','JGZZ_PRODUCT_CODE') is not null THEN
-- IF jg_zz_shared_pkg.get_product(l_org_id, NULL) is not null THEN
JG_WITHHOLDING_TAX_PKG.AWT_Rounding(
P_Checkrun_Name
END IF;
-- Please enter all custom code below this line.
-- Begin Custom Code
null;
-- End Custom Code
END Ap_Special_Rounding;
Please Help…………………………………………!

Hi.
As far as i concern your requirement should have a different explanation. Withholding Tax concerns retaining an amount to pay to the Tax Authority. At least this is the general concept, so the WT account must allways be credited, never debited.
Octavio

Tax calculation in shipment document

Hi Experts,
We have shipment document and cost calculation in place for inbound material.
Now we have one requirement that at the time of GR the following entry should be posted;
Inventory Dr
GR/IR Cr
Freight Clg Cr
Service tax on Freight Cr-particular GL
Now the freight cost is coming from shipment document and FI posting is getting done at the time of GR.
How this service tax part can be taken care of by loading to inevtory and crediting a GL also calculated upon a freight value.
How pricing procedure in shipment document and purchasing can be linked
Rgds

Hi
You may check the following notes which is related to your issue:-
740854
560733
Regards
Amitesh Anand

Withholding tax calculation at down payment clearing F-54

Hi,
Can any one reply the solution
When I am posting down payment to vendor, Basic TDS, Surcharge, Ecess on TDS and Ecess on Surcharge calculated.
Invoice is half of the down payment and TDS and Ecess on TDS calculated properly.
but when i am trying to clearing the down payment against invoice thru F-54, TDS and Ecess on TDS reversed and surcharge and Ecess on Surcharge is also reversed on proportionate basis.
It should not be reversed and client wants which is TDS is raised at Invoice it should be reversed. but we are getting more than that.
Plz help me
sai

Hi,
I think, what system doing is fine,
Let me explain with the accounting entries,
1. Down Payment
Debit Vendor SPL GL a/c      1000
Credit Bank a/c                                945
Credit TDS Payable (all taxes)             55
2. Invoice Verification
Debit GR/IR or Expenses a/c           2000
Credit Vendor a/c                                     1890
Credit TDS Payable (all taxes)                    110
3. Down Payment clearing
Debit Vendor a/c                     945
Debit TDS Payable a/c              55
Credit Vendor SPL GL a/c                       1000
4. Payment (Final)
Debit Vendor a/c                     945
Credit Bank                                               945
5. TDS Payment
Debit TDS Payable                      110
Credit Bank a /c                                         110.
Hope the above scheme of enteries would be helping you to understand this flow.
Saravanan.A

Withholding tax calculation

Hi SAP expert
While configuring exteneded witholding tax how to make sure that tax is deducted only properly at the time of advance payment and invoice ,i.e, how to avoid double deduction of tax both at the time of advance payment and invoice. suppose there is downpayment of Rs. 100000.00 to contractor and Rs. 150000.00 invoice is raised. Principly if we have already deducted Tax on Rs. 100000.00 only on balance Rs. 50000.00 tax should be deducted at the time of invoice.
2. In vendor master we enter w/tax types and codes for invoice or payment or both. Please clarify.
thanks
S AP

Hi,
If i am processing advance payment 1st i will make payment net of tax and while invoicing i can delete the payment relating tax code.
Yes! you can avoid tax being deducted at the time of invoice by giving 0 against both the Down Payment code and Invoiceing WHT codes in the WHT Tab of FB60.
Suppose i am invoicing 1st how i will make payment partial or full without tax as tax is already deducted 1st in advance.
Pl. rephrase your question when you 1st do invoice, how can you make a down payment later.
If you make first Invoice, the TDS is made at the time of Invoice, in this case in WHT Tab put 0 against the DP Tax code. Net amount will be credited in the vendor account.
Where is the option to deselect tax codes.
You need not delete the Tax code while processing the transaction you can put 0 against the tax code which are not applicable for the transaction..
In your earliet question there is another way of doing it..
When you make down payment of Rs.100000, you deduct the TDS and when you make invoice of Rs.150000, you can put 0 against the DP tax code and Rs.150000 against the INV tax code.
When you settle the Down Payment to the Invoice the tax entries passed at the time of DP will get reversed and the TDS accounts will contain the TAX amounts for Rs.150000 only.
Even if you have made the payment of TDS on DP the balance of TDS on Rs.50000 only will be processed at the time of payment of TDS on Invoice.
Thanks
VK

Withholding tax calculation on Expenditure document

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