Withholding Tax (TDS) on provisions

Dear all,
Can you please let me know the procedure for reversing the TDS on provisions which is based on the provisions outstanding as on the year end.
We are able to achieve the dedution of TDS on provisions through the T-Code of J1INPR.
Afterwards, we normally book the vendors bill and deduct TDS on the same.
However as per the standard method we should run J1INUT to reverse the TDS payable which is credited at the time of booking the invoice.
But when we run the J1INUT in test run, system is giving the correct reference of the original entry of TDS on provision. But when we remove the tick of test run and then run J1INUT, system is giving the error of select the valid function.
Can you please guide how to handle such situation.
Regards
Dhirav Shah

Dear Mukthar,
I tried but its not working.During Payment system is adjusting TDS automatically which we paid on Advance but during payment,TDS on final payment is not clearing and not assigned amount is not getting zero.
Step 1: Advance Amount Rs 1000@ 2%
Step 2:Invoice Booked of Rs 5000,no TDS during Invoice booking but payment withholding Tax code was ticked during Invoice booking,as you suggested.
Note:Total Invoice value is Rs 5000 out of which Rs 1000 made as an advance.Please see-step 1.
Step 3:F-54 advance clearing against above Invoice
Step 4: Payment of Rs.4000 subject to TDS
Here is problem,system is calculating TDS on Rs 4000@2% which is correct but not assigned amount is not getting zero.
How to clear this?
Once you click on INR net 4,900 blue line,then amount entered gets 5000.
Now click on WH tax tab,which is showing everything correct. but question is how to clear Rs 80 and not assigned field make Zero.Which is our requirement. If not assigned become zero then issue resolved.
Hope you understand my problem.
If i click on difference posting and simulate then -Not assigned tab gets Zero but it create one open item with Document types-KZ, which again is a issue to clear and you cannot clear.And if you simulate it then system is reversing TDS on advance and final total TDS is crediting this time.Till here no issue. Here is simulation entry-
This you are able to get only once you click on difference posting but in FBL1N with document type KZ Rs 80 would be appear and that you cannot clear anyway.
Vendor Master detail:
Hope you understand my problem,if you run this scenario then you would have more clarity however I covered all process.
Regards,
Prasad

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Withholding Tax(TDS) on Advance(F-48) and On Final Payment-F-53

Hi Expert,
I am facing an issue related to TDS, on vendor advance. Its little different scenario, However rule is whichever is early.
Requirement is like this, generally they deduct TDS on down payment and in case of final Payment. No TDS at the time of invoice booking.
For example- Down payment made to Contractor Rs 200 @ 2%, Total invoice value was Rs 1000. TDS to be deducted on advance will be Rs 4. Invoice booked for Rs 1000.
Hence at the time of payment F-53, system should deduct TDS Rs 16 on Rs (1000-200) Rs 800. How can we achieve same while making payment F-53?
If I have to do same thing in case of invoice (FB60) then I can change TDS base value manually and put Rs 800 then system will calculate automatically.
From configuration point of view I have ticked on-
Change view “Withholding tax type definition-posting at time of paym. Under this ticked both option one by one even its not working.
No centre invoice
Central inv.prop
Regards,
K.Prasad

Dear Mukthar,
I tried but its not working.During Payment system is adjusting TDS automatically which we paid on Advance but during payment,TDS on final payment is not clearing and not assigned amount is not getting zero.
Step 1: Advance Amount Rs 1000@ 2%
Step 2:Invoice Booked of Rs 5000,no TDS during Invoice booking but payment withholding Tax code was ticked during Invoice booking,as you suggested.
Note:Total Invoice value is Rs 5000 out of which Rs 1000 made as an advance.Please see-step 1.
Step 3:F-54 advance clearing against above Invoice
Step 4: Payment of Rs.4000 subject to TDS
Here is problem,system is calculating TDS on Rs 4000@2% which is correct but not assigned amount is not getting zero.
How to clear this?
Once you click on INR net 4,900 blue line,then amount entered gets 5000.
Now click on WH tax tab,which is showing everything correct. but question is how to clear Rs 80 and not assigned field make Zero.Which is our requirement. If not assigned become zero then issue resolved.
Hope you understand my problem.
If i click on difference posting and simulate then -Not assigned tab gets Zero but it create one open item with Document types-KZ, which again is a issue to clear and you cannot clear.And if you simulate it then system is reversing TDS on advance and final total TDS is crediting this time.Till here no issue. Here is simulation entry-
This you are able to get only once you click on difference posting but in FBL1N with document type KZ Rs 80 would be appear and that you cannot clear anyway.
Vendor Master detail:
Hope you understand my problem,if you run this scenario then you would have more clarity however I covered all process.
Regards,
Prasad

Table name for Withholding tax (TDS)

Dear All,
I am unable to get data in J1INQEFILE but at the same time the bank challan update procedure is also completed. I want to check in table whether the data has got updated. Can anyone tell me the table name where this data gets updated for J1INQEFILE..
Thanking you in advance,
Ketan

Run ST05 while running any transaction you will be able to see all table which are getting updated or used by such T-code.

Withholding tax provision on Po's at year End

Hi Experts
TDS has been deducted at the time of making provision on Po's at the year end but actual invoice receipt after payment of TDS in the next year , how the system will take care of TDS on differential amount , and what will happened if TDS has been deducted on provision entry and period has been closed but invoice is received before TDS deposited and corrective entry for differential amount is made in additional period.
On processing of those PO's invoices system will issue any msg that TDS on Provision is already deducted/deposited or not
I have made below config -
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Withholding Tax --> Extended Withholding Tax --> Posting --> India --> Provisions for Taxes on Services Received.
but while doing t_code j1inpr a error msg is coming-
Maintain Accounting configuration for W.Tax code 1000
please help
Regards
Kuldeep Dubey

Hi Kuldeep,
For this issue we were doing the invoices in current month which is pertaining to last year and make it the manual jv provision in local books and reverse in current month first. while updaing the challans we are excluding the previous invoices and posted seperate challan. certificates are issuing manually for old invoices while taking the current year certificates we are going to excluding the challan numbers in J1INCERT.

TDS on provisions

If TDS has been deducted at the time of making provision in the year end but actual invoice receipt after payment of TDS in the next year , how the system will take care of TDS on differential amount (e.g Audit fees), and what will happened if TDS has been deducted on provision entry and period has been closed but invoice is received before TDS deposited and corrective entry for differential amount is made in additional period.
Explain the procedure of TDS on salary also.
Best Regards,
Ashish

The scenario you are telling is possible if you have prepared PO for the same.
For this there is a setting in following path:
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Withholding Tax --> Extended Withholding Tax --> Posting --> India --> Provisions for Taxes on Services Received.

Product type 55c rupee term loan tds and withholding tax deducted

Dear team
any one guide me while posting intrest by using t code tbb1 systen calculates tds and withholding tax but i want only tds how can i remove withholding tax . Pls respond urgently
sarath

Hi,
...in case you get the Witholding Tax flow in Treasury-module already (-> check cashflow;), the flow comes from "Derived Flows" setting. the flow then already exists before running TBB1...
Regards,
Lorenz

Extended withholding tax for customer tds

I WANT CONFIGURATION STEPS FOR CUSTOMER TDS ( CREDIT MEMO)

Hi Srinivas,
No additional customization required for customers credit Memo TDS except this one. All configuration setting for Vendor withholding Tax procedure also applicable to Customers.
Go to ASSIGN WITHHOLDING TAX TYPES TO COMPANY CODES
then select subject to w/tx check box under customer data
Sunitha.

TDS Certificate - Withholding Tax

Dear all,
Pls can anybody say how to configure settings in Extended Without Tax for getting TDS certificate for vendors.
Thanks and Regards
Aspire Fico

Hello,
Steps for Withholding Tax Config...
1.Check W.Tax Countries
2. Define Official Witholding Tax Codes
3. Define Business Place (If more than one TAN No.)
4. Assign factory calendar to Business Place
5.Define W.Tax type for Invoice Posting and Payment Posting
6. Define W.Tax Code for Invoice Posting and Payment Posting
7.Check Receipiant Types
8. Maintain Tax due dates
9. Maintain surcharge calculation method
10.Maintain Surcharge rates
11.Assign tax types to company code
12. Create GL Account - Withholding tax
13. Assingment of GL Account to Withhold tax
14. Maintain Document types for challan updatation
15.Maintain Number ramges group (SAP script forms)
16.Assign Number ranges to number group
17. Maintain number ranges
18. Assign TDS Number in Global Parameters
19. Assign Tax codes in customer/vendor Master
Configuration Document alongwith screenshots:
http://www.sapficoconsultant.com/Bonus/Extended%20Withholding%20tax%20configuration.pdf
If useful pl assign points and if satisfactory pl close this thread****************
Thanks
Para

J1INPR - Withholding Tax on Provision

hi all
i am trying to post some values throu J1INPR, its not processing any data.
the configuration is complete
can anybody help me to clear this issue with all its option in step by step
regards
sallu c.mathew

Good morning.
This folder has been activated and the Withholding Tax have been inserted.
The problem is in receipt of compensation value without taxes.
Thanks.

Withholding tax information

Hello Friends,
With respect to withholding tax Iu2019m facing difficulty to map the below user requirement.
User want to incorporate the withholding tax (WHT) information at purchase order level, but in the purchase order we can't find any such provision to input withholding tax information.
Standard system behavior is that if vendor is subject to WHT, WHT can be calculated at invoice verification level.
We have to cater the below 2 scenarios, guys please provide your expert advice on this:
1. WHT information is to be maintained at PO so that the person making VIV will not commit any error in selecting the tax code or will not make the invoice without inputting the relevant WHT information to avoid invoice being created without WHT on invoices subject to WHT.
2. In a purchase order there are more then one line items some are subject to WHT and some are not, we want to capture the WHT on the items liable for WHT.
We know that WHT is not calculated on item level it is calculated at header level on vendor.
Thanks

Hi Sapref,
1. WHT information is to be maintained at PO so that the person making VIV will not commit any error in selecting the tax code or will not make the invoice without inputting the relevant WHT information to avoid invoice being created without WHT on invoices subject to WHT.
Ans : What you want to ensure at the P.O. level is actually controlled at the Vendor master level and whichever P.O. you use.. if it is maintained in the vendor master, it will deduct TDS at the time of Invoice.. so there is no chance of committing any mistake.. if it is once maintained in vendor master data. Further there is no provision in SAP to maintain TDS Tax codes at the P.O. level
2. In a purchase order there are more then one line items some are subject to WHT and some are not, we want to capture the WHT on the items liable for WHT.
Ans : You are correct, that TDS is at the vendor level and not at the line item level. But Suppose you have an Invoice, which contains two line items, one on which TDS is to be calculated and the other on which TDS is not to be calculated, then at the header level in MIRO, you can enter the Witholding Tax Base amount and the TDS amount manually, and it will get calculated accurately.
Regards,
SAPFICO

Vendor Open items upload- Withholding tax liable tick

Hi all
I have uploaded the Vendor open items. At the time of upload, Withholding tax was activated at the co code level. However, the liable to TDS tick was not checked. Now when I activate the liable tick and go to F-53 to pay the open items, I get an error of Items not activated due to Inconsistent Withholding tax. How do i resolve this error. I think there is a program which we need to execute to correct this. Can any1 help me with the program name?
Thxs in advance
Hrishi

RFWT0010 is a programme to run for Open items adjustment.
Let me know the result.
thanks
prabhakar

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

How to post a PARK document with Withholding Tax

Hi All,
I have parked a document using FB60.Vendor is subject to withholding tax.Now,when i am posting the document through FBV0,the error message displayed is :
"Field BSEG-SECCO does not exist in the screen SAPMF05A 0303".
The error message says that Section Code (Withholding Tax) is missing for Special G/L Indicator Line Item.I dont have provision to enter section code in the screen.
My entries are :
29J Vendor a/c Dr.
50 XYZ a/c
If i using F-02 and not parking ;then it is getting posted.
Note: Line Item is a special G/L Indicator
Please advise how to post a park document using FBV0 with special g/L Indicator and vendor is subject to withholding tax.

Hi Parag,
Section code field doesnot exist in the special G/L indicator line item of the document.So,i cannot enter it.
But,when posting the parked document ,it is asking for Section Code.
The error message displayed is:
"Field BSEG-SECCO. does not exist in the screen SAPMF05A 0303"

Wong calculation of Withholding Tax on vendor INvoice

Dear Cheetaz,
In Pakistan rate of withholding tax on freight is 2% and same has been updated in vendor master record. As i am going to make payment to vendor through t ocde F-48 , system is calculating tax @ 1.98% instead of 2%
kindly advice where should i make changes in SPRO so that system claculate tax amount at the rate specified in vendor master records

Hi,
IMG > Financial Accounting > FA Global Settings > Withholding Tax > Extended WT > Calculation >
Withholding Tax Code
Define WT codes
Here WT codes (i.e. rates, etc) are defined for each WT type defined earlier.
F Note: A business transaction can be assigned only one WT code per WT type. If more that
one code (rate) has to be applied, these must be represented by different WT types.
Activity :
WT type                          WT code
W1                                  W1                    Sec194 - Contractor TDS
% subject to tax             100%
posting indicator             1                       i.e. standard posting u2013 bank/customer/vendor line
items reduced
WT rate                          2%
Income type                    SEW1
Define formula for calculating WT
regards,
Sanju

Withholding tax amount exceeds the customer/vendor line item amount

Hi experts
I am having one problem please help me
My user created one down payment, entry is like this
Vendor Dr-193914
To TDS 3878
To Bank 190036
After this he has booked MIRO with the same value 193914 & has deducted TDS 3878 over that invoice
Now when he is going to adjjust that down payment against that MIRO with specific line item 62
system is throwing that error.
Withholding tax amount exceeds the customer/vendor line item amount 002
Message no. 7Q321
I checked invoice booked correctly & TDS also dedcuted properly why system is throwing that error message
please help me
Regards
Nitin Shukla

Hi Madhu
thanks a lot for instant reply
We are using F-54 Down Payment adjustment at this time we are facing problem & we are clearing against invoice
& with specific line item
For Eg. 5100001596 & line item - 53
Regards
Nitin Shukla

Withholding Tax (TDS) on provisions

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