Withholding Tax issue

Hi Gurus,.
When i am processing Remittance Callahan @ J1inchln my system through error, like Business place for document could not be determined.
Were i have committed mistake could you guys help me on this please.
Thank you.
Mr.Subbu

Hi
Check the Config.
1. Cross-Application components General Application Functions Place of Business Define Business Place
2. Financial Accounting Financial Accounting Global Settings Withholding TaxExtended Withholding Tax Basic Settings  India  Assign Factory Calendar to Business Place.
3. OBY6----additional Tab
4. xk02----whether you have given PAN or not.
To get Certificate follow this:
1. J1INCHLN
2. J1INBANK
3. J1INCERT----
In this document date should be end of the month date i.e, 31/03/2011.
After giving all the details -
save it, below the screen you will notice the Variant. Give the variant name xxxx and descp xxxx and save it. you will get the certificate.
Thanks
Anil

Similar Messages

Withholding tax issue while doing Down payment Clearing - Help needed

Hi,
1. I have posted vendor downpayment for 5000--> TDS was deducted here
Bank Credit = 4500
Vendor Debit =5000
TDS Credit =500
2. I have posted vendor invoice for 5000 --> TDS was calculated
Material Debit = 5000
Vendor Credit =4500
TDS Credit =500
3. Now i have transfer the down payment amount in F-54 (As per the above entry how much do i need to trasfer in this F-54 transaction???)
Note: How much amount do i need to transfer as per the above scenario in F-54? Kindly advise me
4. For testing i have transferred 5000 down payment for the invoice 5000. But while doing F-44,system is not allowing me with differance amount. In F-44,system is not showing any withholding tax details. Kindly help me on this..
Thanks
KB

Dear
TDS should have been deducted either at the time of Invoice posting (MIRO) or at the time of Advance Payment (F-48). So you need to remove TDS code while doing invoice or at the time of making advance payment in F-48. If this is ensured there will not be any problem in clearing.
When inovoice is posted debit will be to GR/IR Account and not to Material Account.
Regards

Extended Withholding tax issue

Hi Everyone,
I am facing a problem with my extended withholding tax.. I have done all the configuration and an entry gets created in table WITH_ITEM but this entry is for $0
I go to MIRO Transaction to create my invoice but the base amount is always blank, after that or at same time I can manually enter the base, or the amount but system is not calculating mnually someone could help me or have any idea on this?
Thank you and regards

Hi
Check your with holding tax type configuration what is the basis for calculation of base amount under the below path:
IMG ‡ Financial Accounting ‡ Financial Accounting Global Settings‡ Withholding Tax‡ Extended Withholding Tax ‡ Calculation‡ Withholding Tax Type ‡ Define Withholding Tax Type for Invoice Posting
Depending on this set up, system determines the base amount on which the with holding tax must be calculated. Under the control tab, you may want to remove the manual with holding tax base amount and make sure that one of the radio buttons in Calculation> Base Amount is maintained depending on how you want to calculate the with holding tax
regards
Sanil Bhandari

F_53 Withholding tax Issue(not india)

Hi,
While processing the payment through t-code f-53, isystem is not calculating tax according to tax code assigned i-e XX. It should deduct tax Rs. 406 but deducting Rs. 6015. This is the only error I have found while processing the payment of the vendors.
and what is mean by per year,starting with mnth in withholding type config in accumulation type tab?
Regards
Venki

HI ALL,
Please look Issue detail below,(its not Indian TDS)
PO gross value is 11600(as per WHT settings its cal gross value)
MOGO and MIRO have done correctly, when at the time of payment entry is:
Invoice gross value= 11500
WHT code per        =3.5%
Vendor a/c A/c Dr   11600
              To bank a/c                 11194
              To Tds                          406
its not coming above values. its has given wrong value:
          Vendor a/c     11500
                      TO bank a/c    5485
                      TO TDS a/c    6015
Please help this
Regards,
Venkat
Edited by: KVenki on Dec 8, 2011 9:26 AM

Withholding Tax Sections not displaying in Withholding tax allowed window!

Dear All,
I have got withholding tax issue after upgrading 2007B to 8.81 PL:09
U know,On BP master data-Accounting-Tax-Withholding tax allowed,where we choose type of section to be selected but sections are not coming in Withholding tax allowed window,If i select "company" as assessee type.
Note:- Sections are coming to window while choosing "others as assessee type"
Please advise asap........

Hi,
Have you upgraded the database using the TDS Upgrade Utility Tool as in 2007 B the TDS add on was used but not from 8.8 onwards?
Check for the documentation on TDS Upgrade Utility.
KInd Regards,
Jitin
SAP Business One Forum Team

VAT and Withholding tax setup for Philippine

Hi ,
Anyone is familiar with the VAT and Withholding tax setup for Philippine.
What is the VAT and WHT config in order to fuilfil the following example.
Appreciate if someone is able to provide me some help on this. Thank you.
Invoice Amount of P 1,120.00 gross of VAT
Services Sales to Private
ENTRY TO RECORD REVENUE          Debit     Credit
Accounts Receivable                                1,120.00
     Vat Consultancy Set-Up                               120.00
     Revenue                                                 1,000.00
ENTRY UPON COLLECTION
Cash in Bank                                                  1,100.00
Taxes Payable - BIR ITR                                 20.00
Vat Consultancy Set-up                               120.00
     VAT Consultancy Payable                               120.00
     Accounts Receivable                            1,120.00

Additional Information
Value Added Tax Reporting:
Advance Return for Tax on Sales/Purchases (VAT Reporting)
Use
In the Philippines, companies are required to submit Bureau of Internal Revenue (BIR) forms 2550M for the monthly (value-added tax) report and 2550Q for the quarterly VAT report. However, these forms also include information not provided by the SAP System, such as advance payments. Using the Advance Return for Tax on Sales and Purchases report, you can print the relevant VAT data and enter it in forms 2550M and 2550Q.
Integration
The report is based on the SAP List Viewer (ALV), which enables you to define your own display variants, according to the BIR requirements listed below.
Activities
To access the report, from the SAP Easy Access screen, choose Accounting --> Financial Accounting --> General Ledger --> Reporting --> Tax Reports --> General --> Advance Return for Tax on Sales/Purchases --> Advance Return for Tax on Sales/Purchases.
You need to make the following settings, in addition to your specific selection criteria:
Under                         Set the following indicator(s)
Output control                         Read address data
Output lists                         Output tax: Line items
                                            Input tax: Line items
You need to define your SAP List Viewer display variant to include the following data on the VAT report, as required by the BIR:
u2022     Reporting company's name and TIN
u2022     Vendor or customer name
u2022     Vendor or customer TIN
u2022     Vendor or customer address
u2022     Document date
u2022     Document number
u2022     Reference number
u2022     Invoice amount
u2022     VAT amount
Withholding tax reports
Generic Withholding Tax Reporting
Use
You use the Generic Withholding Tax Reporting tool to generate withholding tax data for withholding tax reports submitted to the Philippine Bureau of Internal Revenue (BIR) and vendor certificates, as follows:
u2022     BIR form 1601 u2013 Monthly Remittance Return of Income Taxes Withheld
u2022     BIR form 2307 u2013 Certificate of Creditable Tax Withheld at Source
u2022     BIR form 1604 u2013 Annual Information Return of Income Tax Withheld on Compensation, Expanded and Final Withholding Taxes
Features
SAP delivers standard report variants and Smart Forms for each of the reports and the certificate, which are listed below.
SAP also provides a display variant for the output lists, 1SAP, which you can specify under Output control and lists in the Display variant column.
BIR 1601
SAP provides withholding tax data for page 3 of the form. The form comprises three sections u2013 expanded withholding tax, final tax based on the regular rate, and final tax based on treaty rates. Within each of these sections, the data is summarized according to the nature of the income payment (ATC code). For more information, see Withholding Tax Code.
The predefined report variant for BIR 1601 is SAP&PH_1601, and the Smart Form is IDWTCERT_PH_1601.
BIR 2307
The predefined report variant for BIR 2307 is SAP&PH_2307, and the Smart Form is IDWTCERT_PH_2307.
BIR 1604
You use BIR form 1604 to report expanded and final withholding tax for all nonemployee transactions.
SAP provides the three required sections of form 1604: alphalists 3, 4 and 5 (schedules):
Section of BIR 1604 -DESCRIPTION - Predefined report variant - Smart Form
Alphalist 3     Payables subject to expanded withholding tax     SAP&PH_1604-3     IDWTCERT_PH_1604_SCHEDULE3
Alphalist 4     Payees subject to final withholding tax     SAP&PH_1604-4     IDWTCERT_PH_1604_SCHEDULE4
Alphalist 5     Other payees whose income payments are exempt from withholding tax issued but subject to income tax     SAP&PH_1604_5     IDWTCERT_PH_1604_SCHEDULE5
Prerequisites
For each withholding tax report, note the required Customizing settings for the corresponding output group.
Activities
To access the report, from the SAP Easy Access screen, choose Accounting --> Financial Accounting -->Accounts Receivable --> Withholding Tax --> Generic Withholding Tax Reporting.
The Generic Withholding Tax Report has several options for reporting.
The report can be run without the Output Group field populated, or it can be run with one of the PH1 to PH5 options as it relates to the reporting forms/requirements
Hope this piece of information is helpful to you.

Issues with Withholding tax on advance paid

Dear Experts
Our client deducts TDS on the Advance amount paid and on posting of Invoices from the Vendors. The documents are posted with withholding Tax types configured for this purpose in F-48 and FB60 respectively. Document splitting has been activated in the system with all required configuration.
The problem arises when we try to clear the advance amount against the Invoice along with the balance payment in F-53 if the invoice has more than one expense line posted to different Cost Centers in FB60. The system gives an error message " Balancing field "Profit Center" in line item 004 not filled ". Please follow the example given below for better understanding.
Advance posting:
vendor a/c....dr (Profit center 3)
To bank Clearing (Profit center 3)
To TDS on payment
Invoice:
Expense ....dr (Cost Center1 / profit Center 1)
Expense ....dr (Cost Center 2 / Profit Center 2)
To vendor a/c
To TDS on Invoice
Up to here the document splitting works fine with Profit Centers and segments getting displayed in all line items in GL view. The issue comes when we select both the documents in F-53 and try to pay out the balance amount.
Please note the issue does not crop up if we do not populate the withholding tax code while posting the advance entry. The system automatically posts to the relevant profit centers and segments in F-53. But this is not the business scenario.
It would be really helpful if somebody can throw some light on the above issue.
Thanks in advance.
Edited by: sid_das on Dec 14, 2011 11:26 AM

Resolved at our end.

Withholding Tax on Advance paid having issues with Document splitting

Dear Experts
Our client deducts TDS on the Advance amount paid and on posting of Invoices from the Vendors. The documents are posted with withholding Tax types configured for these purpose in F-48 and FB60 respectively. Document splitting has been activated in the system with all required configuration.
The problem arises when we try to clear the advance amount against the Invoice along with the balance payment in F-53 if the invoice has more than one expense line posted to different Cost Centers in FB60. The system gives an error message " Balancing field "Profit Center" in line item 004 not filled ". Please follow the example given below for better understanding.
Advance posting:
vendor a/c....dr (Profit center 3)
To bank Clearing (Profit center 3)
To TDS on payment
Invoice:
Expense ....dr (Cost Center1 / profit Center 1)
Expense ....dr (Cost Center 2 / Profit Center 2)
To vendor a/c
To TDS on Invoice
Up to here the document splitting works fine with Profit Centers and segments getting displayed in all line items in GL view. The issue comes when we select both the documents in F-53 and try to pay out the balance amount.
Please note the issue does not crop up if we do not populate the withholding tax code while posting the advance entry. The system automatically posts to the relevant profit centers and segments in F-53. But this is not the business scenario.
Please let me know if somebody can throw some light on the above issue.
Edited by: sid_das on Dec 12, 2011 5:32 PM

Resolved at our end by tweaking the splitting rule to match the Business requirement.

Issue with Cross-Company code transactions and Extended Withholding tax

Hi Gurus,
I am having an issue with Cross-company code transaction while posting expense with 2 different company codes.
In the 2 company codes, one company code is setup for Withholding tax and other was not set.
While posting in FB50, I am getting the below message and system does not allow to post the invoice.
Company codes have different settings for withholding tax treatment
Message no. F5786
Diagnosis
You are entering a document containing at least one vendor or customer item and which has line items in several company codes. The extended withholding tax treatment has been set to active in one of these company codes, but not in one of the other company codes.
System Response
You cannot enter this kind of document.
Procedure
Enter the transaction in two documents.
For this I tried to test the transaction by activating of extended Withholding tax for both the company codes. Then the invoice is posting correctly now.
The point is if I activate extended withholding tax for the Company code which is not using the setup, will it face any issues in other areas? and also kindly advice whether is this a right way to set up to fix the current problem.
Thanks for the Support and early response will be appreciated.
JBC.

Hi Mamta,
Thanks for the Response. I think you misunderstood my scenario.
For Eg in FB60 with Co code 5065:
I am debiting the Expenses for Co Code 1000(Witholding tax not active) and crediting the Bank Account of Co Code 5065(Withholding tax setup is done for this co code). When I tried to post with these line items I have getting the error.
Posting        GL                   Co Code
Dr          106520(Exp)            1000
Cr          202020(Bank)           5065
For this I tried by activating the Withholding tax for Co code 1000 which is not active before and post it. The system allows me to post the invoice.
I want to know whether is this a right way to solve this issue and will it impact on any other areas by only activating the Withholding tax for a Co code?
Thanks,
Bapu

Withholding Tax for multiple company codes-Bank Challan issue

Hi
I am held up with one issue.
I have four company codes and Extended withholding tax is activated for all the company codes. I have assigned the same number group and number range status for all the company codes.
Now when I try to update Bank challan for a TDS clearing document, the system says bank challan has already updated. But the challan is not updated yet. When we see the document, the challan number and date is coming as blank only.
Is it due to assigning the same number ranges across company codes ?
Your views are highly welcome.
Regardz

No answer ?

Calculation of Tax Issue from FB60 (Tax Code Issue)

Dear All,
Normally when we purchase or received any services we post following entry.
INVOICE VALUE IS 1000
Purchase Ac Dr   1000
   To Vendor                   900
   T o Tax                         100
But our requirement is that
Purchase Ac Dr   1100
   To Vendor                  1000
   T o Tax                          100
System should add cost of TAX in purchase instead of reduction form vendor balance as we have to give 1000 RS to vendor.
Can we create TAX code in this manner.
This is not even possible form function available in Edit Option in FB60 (Calculate tax on Net Amount)
Not even from TDS (Withholding tax)
WE CANu2019T SUGGEST POSTING JV IN THAT CASE.
Regards,
Bittu

Apologized for that Atif.
Withholding Tax Type does not control Vendor line item.
My issue is that system should not reduce value enter in vendor amount field.
System usually reduce amount which is payable to vendor
Please see my example once again. I also mention that it is not working from Withholding Tax nor form Tax code(FTXP)
Edit option in FB60 is also not useful in this case.
Regards,

Withholding tax Amount not being displayed in the Invoice while posting a Parked Document

Hi,
I have created a parked document for the Vendor who has the Witholding tax code w9 - 15% . I created Parked Document using FBV1 and then tried posting the same using FBV0.Somehow I am not getting the Withholding tax Amount in the FI Document created. However the W/Tax Base Amount and the W/ Base LC are being displayed correctly.
Say if the Line item Amount is 1,000$ then both the amounts mentioned above in the Additional tab "Withholding tax Data" are being displayed as 1,000 usd but the W/Tax Amount is 0,00 USD.
2. Also We have the PI and the Interface is written to post the Parked document while the xml file. There is a Method Execute_Asynchronous which has two BDCs one for FBV2 ( Change Parked Document ) followed by the Post Parked Document FBV0. Hence When I try to post the Parked Document using the SPROXY Interface which has two BDCs Viz FBV2 & FBV0 I still get the Invoice with the Same Amounts and at times with additional 2 zeros added to it in the Additionsal Tax Data Screen.
I am not sure what is the reason for this. Can anybody help me sort out this Issue.
Can there be any Config issues. Please let me know what all config Settings we need to do to sort out this Issue.
Also let me know why the 2 Zeros are getting added to the Base Amount e.g if the Vendor Line item is 12,000 USD it shows as 12,00000.00 in the Withholding tax Data Tab in the Invoice.
Regards,
Deepak.

Dear Praveen,
please check into IMG if You defined the WT type You are using for Your Comapny code:
IMG --> Assign Withholding Tax Types to Company Codes
I hope this helps.
Mauri

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

Withholding Tax by Line Item (not by vendor)

Hi,
Thereu2019s been more than 1 occasion where clients request for withholding tax at line items (purchase equipment and service in 1 invoice. Equipment no withholding tax but service has withholding tax). However, as far as I know, the withholding tax is applicable by vendor and not by line item of the vendor. Is there any workaround on this?
Regards,
Cheah

If i understand correctly, you have prepared PO for material plus service, service attracts WHT
you could prepare two different vendors - one for material, one for service - even though the vendor is same, and maintain WHT only in service vendor.
under PO there is condition types for service, there you can enter this second vendor who is providing service.
i think this way you issue should get resolved.
Pl share how to finally got thru it.
Thanks
Sanjay

What is the use of Withholding tax identification number field?

Hello SAP Experts,
I posted this question earlier but had to close because of no replies from anybody. Posting it again to see if I am lucky to get some answer this time.
Can someone tell what is the use of field Withholding Tax Identification Number? Does it help with the reporting? Where does it get populated on the report if given at vendor or master record or within the withholding tax customization for company code? What is the difference between creating it in the customization for withholding tax information for company code and vendor/customer master record?
As per SAP: Withholding tax identification number
This is a number issued by the tax authorities per withholding tax type.
This number must be specified in Customizing either:
(a) As part of the withholding tax information defined for the company code, or
(b) As part of the withholding tax information defined in the customer or vendor master record.

Hi Pete,
The only thing that I could check is the content used in US:
See content of this field for US:
LFA1-STCD1 Social security number
LFA1-STCD2 Employer identification number
LFBW-WT_WTSTCD Withholding tax identification number for WT Type
In order to populate it, please kindly check the following:
The reason why you cannot fill in the field WT_WTSTCD in transaction
Fk02 however you can do it in XK02 (Change vendor centrally) can be due
to wrong customizing of the field status group.
Kindly check the following:
SPRO->
Finantial accounting -> Accounts receivable and accounts payable ->
Define screen layout per activity (vendors) -> Change Vendor(Accounting)
Company code data -> W/holding tax data, w/h tax 2 ->
FIELD Withholding tax code,w/h tax 2 will be probably just available to
display. Please, change it to optional entry.
I hope I could be of assistance.
Kind Regards,
Fernando Evangelista

Withholding Tax issue

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