Witholding Tax Calculation
Hi,
I have installed TDS Version 4.4. All other menu is working fine. But Withholding tax for A/P downpayment Request is not been calculated.
Please let me know any setting to be made.
But withholding tax for A/P downpayment invoice is calculating correctly.
regards
Suresh S
Hi,
Which version of SAP B1 you are using?
Similar Messages
-
Witholding tax calculation - Accumulation type
Hi Experts,
I have two scenario in extended witholding tax to be configured.
1. 194C - Payment in excess of Rs.30,000/- in a single payment or Rs.75,000 in aggregate in a FY
2. 194I - Payment in excess of Rs.1,80,000 p.a.
It would be greatful , If anyone knows how to configure this in same is SAP and share with me.
Thanks in advance.
Regards
AbhiHi,
1. 194C - Payment in excess of Rs.30,000/- in a single payment or Rs.75,000 in aggregate in a FY
Not possible to meet entire requirement.
2. 194I - Payment in excess of Rs.1,80,000 p.a.
it is possible
suggest you to use the Accumulation function
Please also maintain the Minimum /Maximum amounts per with holding Tax Type & use the below mentioned path for the same
SPRO>Financial Accounting>Financial Accounting Global Settings>Withholding Tax>Extended Withholding Tax>Calculation>Minimum and Maximum Amounts>Define Min/Max Amounts for Withholding Tax Types
Assign the Maximum base amount as Rs.180000/-
then at the time of calculating Withholding Tax it will calculate tax for anything excees of the above mentioned amount
Please refer the below link for details
http://www.sapficoconsultant.com/pdf/Extended%20Withholding%20tax%20configuration.pdf
Regards
Praveen P C -
Witholding Tax calculation while payment and advance
Dear experts,
I have few questions as below. It would be great if you can help me out in this :
In vendor master I have two WTH tax codes for invoice and payment and marked as liable.
Incase of invoice (FB60) posting system is calcu;ating correctly and posting, but while posting no popup for to rectify the WTX code also no base amount is populating in WTH tax tab of invoice posting. Is this correct way??
While making payment for the same invoice through F-53, system is again calculating on same open item and no popup, until I go to WTH tax tab and delete the tax amount. What is lacking in my customising of WTH tax code (payment type), to restrict WTH tax calcutaing twice ??
While making advance payment by F-48, system not calculating WTX tax and showing tax code is mandatory, even though tax code (V0-tax exempt) entered, no WTH tax calculation happening. I have checked all Field status of document type and recon account, nothing is mandatory. I dint know why?? Please help in this regard.
Thanks in advance.
Regards
AbhiHi madhu
Thanks for explaining the process it works.
Regarding the error I was facing earlier to enter the tax code in F-48 for the tax category was marked as ' * ' in the advance reconciliation GL. I have removed them and now the error is not coming.
But now for the same or advance payment with F-48, I am not able post the document, though the payment WTX code is showing but not calculating the amount for the same.
The error is
"Withholding tax amount exceeds total bank line item amounts."
Message no. 7Q320
How to post it. Please help.
Regards
Abhi -
Witholding tax calculation with complex formula
Hi Team,
Is there any solution for the below requirement in calculating withholding tax.
System should consider the below formula while calculating Withholding tax for vendor.
If the Invoice (INV) amount is Less than 800 = Tax is 0
801 to 4000 = (INV amount - 800) * 20%
4001 to 20000 = (80% of INV amount) * 20%
20001 to 50000 = (80% of INV amount) * 30%
more than 50001 = (80% of INV amount) * 40%
as per my understanding we can use withholding tax forms. but I am not able to get the above scenario. Can anybody trough the exact step to build the above formula for calculating withholding tax code.
Thanks,
RaviHi,
You create a new WHT Type and Code for this scenario, where in for WHT code defenition, you must select indicator WHT Formula.
Now you can maintain formula for the above created type and code combination with the conditions of your requirement.
IMG -- Financial Accounting (New) -- Financial Accounting Global Settings (New) -- Withholding Tax -- Extended Withholding Tax -- Calculation -- Minimum and Maximum Amounts -- Define Min/Max Amounts for Withholding Tax Codes......Here Maintain the minimum base amount as 800...for the newly created type and code combination.
IMG -- Financial Accounting (New) -- Financial Accounting Global Settings (New) -- Withholding Tax -- Extended Withholding Tax -- Calculation -- Withholding Tax Code -- Define Formulas for Calculating Withholding Tax...............Here you maintain the below entries.
CrcyWHT TypeWHT CodeCountryValid From Date
Then select this new entry and double click on Formulas for withholding tax calculation.
There maintain your conditions.
Regards,
Srinu -
Witholding tax calculation in MRRL tcode
HI
I have an requiremment to calculate withholding tax on particular condition type of PO in ERS.what should i do to achieve that ......need help ASAP...????Hi,
1. 194C - Payment in excess of Rs.30,000/- in a single payment or Rs.75,000 in aggregate in a FY
Not possible to meet entire requirement.
2. 194I - Payment in excess of Rs.1,80,000 p.a.
it is possible
suggest you to use the Accumulation function
Please also maintain the Minimum /Maximum amounts per with holding Tax Type & use the below mentioned path for the same
SPRO>Financial Accounting>Financial Accounting Global Settings>Withholding Tax>Extended Withholding Tax>Calculation>Minimum and Maximum Amounts>Define Min/Max Amounts for Withholding Tax Types
Assign the Maximum base amount as Rs.180000/-
then at the time of calculating Withholding Tax it will calculate tax for anything excees of the above mentioned amount
Please refer the below link for details
http://www.sapficoconsultant.com/pdf/Extended%20Withholding%20tax%20configuration.pdf
Regards
Praveen P C -
I am trying to compensate two open line items (which refere to the same document) and for which we did a payment in advance.
In F-53 we set the indicator for Special Ledger(we work with special ledger to payment in advance) but witholding tax calculation is wrongly done. Otherwise if we do no set the indicator for Special ledger the calculation is properly done (but in this case the value paid in advance is not considered...so we can't do this).
Please, could someone help me??
I've already checked vendor master data and witholding tax is properly defined. I also checked the open line items and they look ok.
Tks,
NaejDear all,
without a practical example with all the posted documents and the business process, is very difficult to help You. Anyway the down payment ia a payment in advance and It should contain WT amount in case Your vendor has the WT type defined at the payment time. When You do the final payment by f-53 and You clear the DP and the invoice, the System should contains two WT line items: the first with the amount equal to the one posted into the Down payment and with the contary sign, the second that contains the total calculated WT amount.
I hope this helps.
Mauri -
Withholding tax report clarification: Witholding tax base not excluding VAT
HI
In witholding tax settings we have settings to to take NET amount as base.
But for the entries where VAT is manually given Withhloding tax base is not excluding VAT?we are having an entry where we are inputting VAT manually using FB60.entry would be
DrStock
DrVAT
Cr Vendor.
WHY IS THIS?
Where as it is taking net amount as base correctly for the cases where VAT is automatically calculated
How is automatic calculated VAT is related to witholding tax base amt?
rgdsHi,
This thread has been created some time ago and recieved no response. Can you please close if you feel this issue/query has been resolved in the meantime. If it has not then please provide additional information in relation to your query. By providing updates to your thread it moves you thread to the first page of thread and increases visibility and possiblity for the multiptude of experts in SDN Forums to offer their support.
Therefore please update with more information or close thread.
Thank you for your assistance.
Regards,
Brendan.
(ERP FI/CO SDN/WIKI Moderator)
http://wiki.sdn.sap.com/wiki/display/ERPFI/ERP+Financials -
Witholding Tax Information system (J1INMIS) Not updating (FICA)
Hi Experts,
We are using ECC 6.0 recently we upgrated with EHP 5. And the current system (FICO) is working fine with TDS calculations and Witholding Tax Information system (J1INMIS) gets updated perfectly.
We are implimenting FICA (student Accounting). FICA has a provision to calculate the TDS so all TDS Calculations done in FICA.
While we transfer the data from FICA to FICO all GL's gets update even TDS GL also getting update. But when I Check the Report Witholding Tax Information system (J1INMIS) the TDS calculated from FICA is note appearing in this report. But appearing in TDS GL's.
I assume FICO system will not have any Vendor information because In FICO all vendor balances will get update to only reconciliation key as vendor are in FICA system.
Another problem is how I can take TDS Certificates for vendors If the Tax Information system doesn't update.
Please suggest.....
Kind Regards,
ShivajiTo get TDS certificate we use T code J1INMIS, Pls dont go to This T code: Follow this:
1. J1INCHLN
2. J1INBANK---Bank no, will be Check Issue A/C.
3. J1INCERT----In this document date should be end of the month date exampl=31/03/2011
After giving all the details in J1INCERT
select - Ctrl S (Save the document_
you will see the below screen (Variant) give variant name XXX Description (Check Printing)
save, you will get 16A Form. -
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 > <b>Define Withholding Tax Type for Invoice posting</b>
2. Define witholding tax type for payment posting
IMG > Financial Account Global settings > Withholding tax > Extended Withholding Tax > Calculation > Withholding Tax type > <b>Define Withholding Tax Type for Payment Posting</b>
and also check OBWW (Define account for w/h tax)
rgds. -
hi,
I am not able to do tax calulation against the vendor in F-41.
After enterint the required information and chossing the the tax calculation, we are not able to get the tax calculation and tax deduction culd not be seen.
please look at this issue and reply soon as possible
thanks.Hi Prem,
Please check if you have entered the Withholding Tax data in the Company code tab in the vendor master. I am assuming that you have setup witholding taxes as required by SAP.
Hope this helps.
Thank You.
Regards,
AVD -
Witholding Tax - SRM 7.0 Ext Classic
Hi,
After creating the invoice in SRM, I check the PO History in R3 4.7 I drill down into the invoice/accounting doc and the witholding tax code does not get populated.
I have already done the following.
Completed all general tax configuration in SRM including defining the witholding tax config for the BE system and vendor. The vendor master in R3 is setup with a witholding tax code and the vendor has been replicated to SRM.
If you simply enter an invoice directly in r3 against this vendor then the witholding tax code is picked up in the accounting doc.
It seems that the new witholding tax config in SRM is not doing anything at all.
Thanks,
MattHi Matt
You can also enter and calculate withholding tax. In some countries, this tax is liable at the beginning of the payment flow and is not transferred by the taxable entity to the tax authorities. You define whether withholding tax is active for a country or a supplier in Customizing for Supplier Relationship Management under SRM Server Cross-Application Basic Settings Tax Calculation Activate Withholding Tax .
if you are very confident. create oss message.escalate to SAP.
br
muthu -
Hello Experts,
Can any one explain or send docs for Configuration of witholding tax configuration for Customers
[email protected]Configuration Guide
1 Overview
This configuration guide provides the information you need to set up the configuration for withholding tax under Financial Accounting. It covers configuration relating, classic withholding tax, extended withholding tax.
2 Configuration
2.1 Organization structure
2.1.1 Organization Setup Step
N.A
2.1.1.1 Use
N.A
2.1.1.2 Prerequisites
N.A
2.1.1.3 Procedure
1. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu <IMG Menu path>
2. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
- In above table enter the field name, description, and usage of every relevant field.
- In the table below, list down all the actual values set up in the client. Add or delete columns as necessary.
<Field -1> <Field -2> <Field -3> <Field -4>
Value 1-1 Value 2-1 Value 3-1 Value 4-1
2.2 Process Configuration for withholding Tax
The following are the configuration steps for Withholding tax.
2.2.1 Classic withholding Tax
Maintain Countries
Maintain Types of Recipient
Define Income Types
Maintain Tax Codes
Define Form Names for Extended Reporting
Define Output Groups
2.2.1.1 Maintain Countries
The withholding tax country is needed for printing the withholding tax form. Since the list of country IDs prescribed by law is different from the list in the system, you have to define the withholding tax countries again.
2.2.1.1.1 Use
Used For printing the withholding tax forms.
2.2.1.1.2 Prerequisites
N.A
2.2.1.1.3 Procedure
3. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings Maintain Countries
4. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Withholding tax country An additional country is needed for calculating or reporting withholding tax.
Description Text of country
2.2.1.2 Maintain Types of Recipient
The type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.
2.2.1.2.1 Use
Used For printing the withholding tax forms.
2.2.1.2.2 Prerequisites
N.A
2.2.1.2.3 Procedure
5. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings  Maintain Types of Recipient
6. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Rec. Type Type of recipient"
Description Description of recipient type
2.2.1.3 Define Income Types
The income type is a classification of your (foreign) vendors according to income.
2.2.1.3.1 Use
You need the income type as a specification for the withholding tax return...
2.2.1.3.2 Prerequisites
N.A
2.2.1.3.3 Procedure
7. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Basic Settings  Define Income Types
8. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Income type Type of income subject to withholding tax
Text Description of income type
2.2.1.4 Maintain Tax Codes
The income type is a classification of your (foreign) vendors according to income.
2.2.1.4.1 Use
You need the income type as a specification for the withholding tax return...
2.2.1.4.2 Prerequisites
N.A
2.2.1.4.3 Procedure
9. Access the activity using the following navigation options:
Transaction Code OBC7
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Calculation Maintain Tax Codes
10. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries such as the length of the postal code or bank account number.
W.tax code The tax codes are unique per country
Description Text of the tax code
Off.w. tax .code Key which is used for withholding tax reporting on official forms.
Percentage subject to tax Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code
Net base for tax contributions Indicator that the taxes on sales/purchases are not used in the base amount for withholding tax.
Currency Currency of the minimum amount defined for the withholding tax report
Minimum Amount Field used define minimum tax it is used for Japan only N.A
Withholding tax rate Percentage rate used in conjunction with the withholding tax base amount to calculate the withholding tax amount
Reduced Rate Percentage rate which is to be used for the withholding tax base amount if there is a valid exemption certificate, to calculate the withholding tax amount
Withh. tax formula withholding tax is to be calculated according to a special procedure
Germ. reunification tax German Reunification Tax for the Withholding Tax N.A
Posting with payment The payment amount is reduced by the withholding tax amount posted
Region The region forms part of the address
Provincal tax code Together with the country key, the region and the withholding tax class,the fiscal province code defines a reporting key that is required for reporting withholding tax (DME) and by the tax authorities (Spain). N.A
Income type Type of income subject to withholding tax
2.2.1.5 Define Accounts for Withholding Tax
You define the account numbers of your withholding tax accounts. The system posts the tax amount to these accounts when clearing open items.
2.2.1.5.1 Use
Used for document posting in FI.
2.2.1.5.2 Prerequisites
N.A
2.2.1.5.3 Procedure
11. Access the activity using the following navigation options:
Transaction Code OBYS
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Postings Define Accounts for Withholding Tax
12. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction QST The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Tax code used to differentiate account determination
Account GL account no.
2.2.1.6 Define Form Names for Extended Reporting
You define the names of the forms for the withholding tax return to your vendors.
2.2.1.6.1 Use
You can use the form ID to define country-specific forms.
2.2.1.6.2 Prerequisites
Form should be there
Company code
2.2.1.6.3 Procedure
13. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Reporting Define Form Names for Extended Reporting
14. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Program name The name of the program you want to edit
Company code The company code is an organizational unit within financial accounting.
Form ID The identification for a form or a form set enables you to access a particular form or set of forms from a selected group of forms
Form Form which is to be displayed
2.2.1.7 Define Output Groups
You define the combination of outputs which is required for a given data source
You would define two output groups in Customizing:
One to define the data selection (accounts payable, etc.) and the form and file to be used.
One to define a data selection (accounts receivable, etc.) and the list to be used.
2.2.1.7.1 Use
You can for different reporting purpose..
2.2.1.7.2 Prerequisites
Form
DME Engine
2.2.1.7.3 Procedure
15. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Generic Withholding Tax Reporting Define Output Groups
16. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Process Type type of process that will be triggered by the program
Output Group Indicates the output group as used in withholding tax reporting. An output group is the combination of outputs which is required for a given data .
Customizing view withholding tax scheme in your country
Reported doc. You can choose in which context the withholding tax data is to be displayed
Open items selecting this option will allow you to see also the open items
Group item according to fiscal year items belonging to vendor/customer B are listed together with items of vendor/customer A if A is specified as fiscal address of B.
No exemptn data Excludes data relating to withholding tax exemption
No tax data Excludes data relating to taxes on sales/purchases
Title of output list focused on The output list is divided into four sections, covering Various information
Form printing Description for printing form
DME File Using this parameter, you can control whether the data medium exchange should be carried out to a temporary sequential file
Format tree Used together with the DMEE tree type to uniquely identify a format tree
Tax Ref.1 There is a parameter type for every additional parameter for a company code
Tax Ref.2 There is a parameter type for every additional parameter for a company code
User Program Your report should contain a form
2.2.2 Extended withholding Tax
Withholding tax Country
Extended withholding tax Malaysia, Singapore, Brunei, Nepal ,Thailand
Check Withholding Tax Countries
Define Withholding Tax Codes
Check Recipient Types
Define Income Types
Define Withholding Tax Type for Invoice Posting
Define Withholding Tax Type for Payment Posting
Define Rounding Rule for Withholding Tax Type
Define Withholding Tax Codes
Define Formulas for Calculating Withholding Tax
Portray Dependencies Between Withholding Tax Types
Define Min/Max Amounts for Withholding Tax Codes
Assign Withholding Tax Types to Company Codes
Activate Extended Withholding Tax
Define Accounts for Withholding Tax to be Paid Over
Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
Define Accounts for Self-Withholding Tax
Define Accounts for Withholding Tax Offsetting Entry
Define Numbering Classes
Define Numbering Groups
Define Number Ranges
Assign Numbering Group to Numbering Class
Assign Numbering Group to Numbering Class
Numbering Concept Option 1: Assign Numbering Class
Numbering Concept 4: Assign Numbering Group
Assign Forms for Withholding Tax Certificates
Define Minimum Amounts per Withholding Tax Code
Define Output Groups
2.2.2.1 Check Withholding Tax Countries
The withholding tax country is needed for printing the withholding tax form. Since the list of country IDs prescribed by law is different from the list in the system, you have to define the withholding tax countries again.
2.2.2.1.1 Use
Used For printing the withholding tax forms.
2.2.2.1.2 Prerequisites
N.A
2.2.2.1.3 Procedure
17. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Check Withholding Tax Countries
18. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country Key country key contains information which the system uses to check entries such as the length of the postal code or bank account number
Withholding tax country An additional country is needed for calculating or reporting withholding tax.
Description Text of country
2.2.2.2 Define Withholding Tax Codes
If your national tax authorities use withholding tax keys to identify the different withholding tax types, you can define these official names for your tax codes here.
2.2.2.2.1 Use
System can therefore assign the withholding tax items to the correct withholding tax return.
2.2.2.2.2 Prerequisites
N.A
2.2.2.2.3 Procedure
19. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Define Withholding Tax Codes
20. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Official Key Official withholding tax codes are defined which must be included in official reports.
Name Description of official key
National tax code With this value you can classify every official tax key. This information is required on certain legal reports
Country Off. w/tax key Nat. Tax Code Text (40 characters)
NP COMN Commission
NP CONT Contractors
NP DIVD Dividends
NP INTR Interest
NP MANT Maintenance
NP PROF Professional
NP RENT Rent
2.2.2.3 Check Recipient Types
The type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.
2.2.2.3.1 Use
To print from for vendors.
2.2.2.3.2 Prerequisites
N.A
2.2.2.3.3 Procedure
21. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Extended Withholding Taxs Basic Settings  Check Recipient Types
22. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
With holding tax type This indicator is used to classify the different types of withholding tax
Rec. Type The type of recipient can be defined in the vendor master record
Text Description of Rec. type
Country Withhld tax type Recipient type Text
NP I1 NR Non - residents
NP I1 PN Person Not Registered
NP I1 PR Person Registered
NP P1 NR Non - residents
NP P1 PN Person Not Registered
NP P1 PR Person Registered
TH I1 3 Phaw.Ngaw.Daw. 03
TH I1 53 Phaw.Ngaw.Daw. 53
TH I1 54 Phaw.Ngaw.Daw. 54
TH I2 3 Phaw.Ngaw.Daw. 03
TH I2 53 Phaw.Ngaw.Daw. 53
TH I2 54 Phaw.Ngaw.Daw. 54
TH P1 3 Phaw.Ngaw.Daw. 03
TH P1 53 Phaw.Ngaw.Daw. 53
TH P1 54 Phaw.Ngaw.Daw. 54
TH P2 3 Phaw.Ngaw.Daw. 03
TH P2 53 Phaw.Ngaw.Daw. 53
TH P2 54 Phaw.Ngaw.Daw. 54
TH W1 2 Phaw.Ngaw.Daw. 02
TH W1 3 Phaw.Ngaw.Daw. 03
TH W1 53 Phaw.Ngaw.Daw. 53
TH W1 54 Phaw.Ngaw.Daw. 54
TH WP 2 Phaw.Ngaw.Daw. 02
TH WP 3 Phaw.Ngaw.Daw. 03
TH WP 53 Phaw.Ngaw.Daw. 53
TH WP 54 Phaw.Ngaw.Daw. 54
2.2.2.4 Define Income Types
The income type is a classification of your (foreign) vendors according to income.
2.2.2.4.1 Use
You need the income type as a specification for the withholding tax return...
2.2.2.4.2 Prerequisites
N.A
2.2.2.4.3 Procedure
23. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Define Income Types
24. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Income type Type of income subject to withholding tax
Text Description of income type
2.2.2.5 Define Withholding Tax Type for Invoice Posting
You define the withholding tax type for the posting at the time of entering an invoice. This withholding tax type does not have any effect on the payment.
2.2.2.5.1 Use
The withholding tax type used for the posting at the time of entering an invoice.
2.2.2.5.2 Prerequisites
N.A
2.2.2.5.3 Procedure
25. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Withholding Tax Type for Invoice Posting
26. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/TAX type No. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Base amount Net amount,
Modif net amount.
Gross amount,
Tax amount ,
Modif tax amount ,
Inherit base,
Base amount Reductn the system uses the selected amount as the base amount to calculate the withholding tax amount.
Rounding rules W/Tax comm.round,
Round w/Tax amnt up,
Round w/tax amount To enable the system to calculate withholding tax, you must specify a rounding rule for each withholding tax type.
Post w/tax amount TShe withholding tax amount is both calculated and posted
Accumulation type No accumulation,
Per calendar year,
Per quarter,
Per month,
Per year ,starting with mnth
Acc. W/Tax to max. Is used to accumulated withholding tax
W/tax base manual withholding tax type, the field withholding tax base amount is ready for input
Manal w/tax amnt For document entry the field withholding tax base amount is ready for input for this withholding tax type
No cert. numbering Prevents certificate numbering
Region the region forms part of the address
Base Amount W/tax code level,
Type Level Defines the minimum/maximum withholding tax base amount at withholding tax code level.
Withholding tax amount W/Tax code level,
Type Level Defines the minimum/maximum withholding tax amount at withholding tax type level
2.2.2.6 Define Withholding Tax Type for Payment Posting
You define the withholding tax type for posting at the time of paying. You also have to enter the withholding tax information when entering the document for this withholding tax type. (Only for Thailand)
2.2.2.6.1 Use
The withholding tax type used at the time of posting.
2.2.2.6.2 Prerequisites
N.A
2.2.2.6.3 Procedure
27. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Withholding Tax Type for Payment Posting
28. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/TAX type No. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Base amount Net amount,
Modif .net amount.
Gross amount,
Tax amount ,
Modif tax amount ,
Inherit base,
the system uses the selected amount as the base amount to calculate the withholding tax amount.
Rounding rules W/Tax comm.round,
Round w/Tax amnt up,
Round w/tax amount To enable the system to calculate withholding tax, you must specify a rounding rule for each withholding tax type.
Cash discount W/tax pre c/dis,
c/dis pre w/tax
Post w/tax amount TShe withholding tax amount is both calculated and posted
Accumulation type No accumulation,
Per calendar year,
Per quarter,
Per month,
Per year ,starting with month,
Combined Accum
Acc. W/Tax to max. Is used to accumulated withholding tax
W/tax base manual withholding tax type, the field withholding tax base amount is ready for input
Manal w/tax amnt For document entry the field withholding tax base amount is ready for input for this withholding tax type
Self W/holding When you come to make a payment, you can then decide, on a case by case basis, whether self-withholding should apply
W/Tax alrdy w/hd the amount can be entered when you post the invoice
W/tax for Pmnt the withholding tax amount can be entered manually for incoming and outgoing payments
No.Cert. numbering Prevents certificate numbering
Region the region forms part of the address
Base Amount W/tax code level,
Type Level Defines the minimum/maximum withholding tax base amount at withholding tax code level.
Withholding tax amount W/Tax code level,
Type Level Defines the minimum/maximum withholding tax amount at withholding tax type level
Central invoice No centr.invoice,
Cent.inv & 1st p.pmt,
Central inv.prop. indicator, "Central invoicing" is not applied to this withholding tax type. N.A keep it as no.
Minimum check Minimum check at item level,
Check min base amnt at pmnt doc level,
Min .base amnt check at doc invoice level,
Amount min.check at payment doc level,
Tax exempt amount check at Document level You can select any indicator system calculate the tax and post after checking the specified base amount
2.2.2.7 Define Rounding Rule for Withholding Tax Type
You define rounding rules for the individual withholding tax types.
2.2.2.7.1 Use
Rounding rules only apply to the posting of withholding tax amounts in the appropriate company code
2.2.2.7.2 Prerequisites
N.A
2.2.2.7.3 Procedure
29. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Type  Define Rounding Rule for Withholding Tax Type
30. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code NP01 The company code is an organizational unit within financial accounting.
W/th .type I1,P1 This indicator is used to classify the different types of withholding tax.
Currency NPR Currency key for amounts in the system.
Unit 100 Unit to be round off
2.2.2.8 Define Withholding Tax Codes
You define the withholding tax codes rounding for calculating withholding tax.
2.2.2.8.1 Use
Used for calculating the withholding tax.
2.2.2.8.2 Prerequisites
N.A
2.2.2.8.3 Procedure
31. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Codes  Define Withholding Tax Codes
32. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
w/tax code One or more "withholding tax codes" are assigned to each withholding tax type
Off.W/Tax Key official withholding tax codes are defined which must be included in official reports
Percentage subject to tax Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
Post.Indic If you set this indicator tax amount is deducted accordingly
1 - Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
3- Portion of the invoiced amounts which are subject to tax with the above-mentioned withholding tax code.
With/tax rate This is the percentage rate applied to the withholding tax base amount to arrive at the withholding tax amount
With /tax rate ( fraction) Withholding tax rate counter, if the rate can be entered as a fraction
W.tax From Indicator that withholding tax is to be calculated according to a special procedure
Region The region forms part of the address
Prov.tax.code Together with the country key, the region and the withholding tax class,the fiscal province code defines a reporting key that is required for reporting withholding tax (DME) and by the tax authorities (Spain).
Income type Type of income subject to withholding tax
2.2.2.9 Define Formulas for Calculating Withholding Tax
You define formulas (scales) for calculating withholding tax. In order to use a formula for calculating withholding tax, you must enter the national currency in the Currency key field of the relevant company code.
2.2.2.9.1 Use
Used for defining the specification like from which date ,up to what amount the tax rate is applicable
2.2.2.9.2 Prerequisites
N.A
2.2.2.9.3 Procedure
33. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Codes  Define Formulas for Calculating Withholding Tax
34. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
currency Currency key for amounts in the system.
Withhld tax type This indicator is used to classify the different types of withholding tax
w/tax code One or more "withholding tax codes" are assigned to each withholding tax type
Wcty an additional country is needed for calculating or reporting withholding tax
Valid from The date valid from
To base amnt Maximum withholding tax base amount up to which the withholding tax rate specified is to be used
Whld Tax Percentage rate, which is used in conjunction with the withholding tax base amount to calculate the withholding tax amount
Red RT Percentage rate which is to be used for the withholding tax base amount if there is a valid exemption certificate, to calculate the withholding tax amount
Reduce.base amt. Amount by which the base amount is to be reduced in order to determine the withholding tax amount by means of the withholding tax rate
Dec.red.bse.amt Amount by which the base amount is to be reduced with withholding tax exemption in order to determine the withholding tax amount by means of the decreased withholding tax rate
2.2.2.10 Portray Dependencies between Withholding Tax Types
You can represent dependencies between withholding tax categories.
2.2.2.10.1 Use
You can use in a sequence of withholding tax in a sequence.
2.2.2.10.2 Prerequisites
N.A
2.2.2.10.3 Procedure
35. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Withholding Tax Base Amount Portray Dependencies Between Withholding Tax Types
36. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/tax type no. By numbering withholding tax types, you can have withholding tax calculated in a particular sequence
Depend on type no. Sequence number of the withholding tax type whose withholding tax amount has some influence in the calculation of the withholding tax base amount
Table values
Cty Wth.t.type W/tax no. Depen.type Name
NP I1 1 Invoice posting - EWT
NP P1 2 Payment posting - EWT
2.2.2.11 Define Min/Max Amounts for Withholding Tax Codes
you define minimum and maximum amounts for withholding tax codes. In the withholding tax base exemption amount field you can specify an amount which is deducted when calculating the with holding tax base. The amount of the tax exemption does not have any effect when matching the withholding tax base with the minimum, because the base and the minimum are matched before the tax-exempt amount is deducted.
2.2.2.11.1 Use
Used for exemption amount field you can specify an amount which is deducted when calculating the with holding tax base.
2.2.2.11.2 Prerequisites
N.A
2.2.2.11.3 Procedure
37. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Taxs  Calculation  Minimum and Maximum Amounts Define Min/Max Amounts for Withholding Tax Codes
38. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Country The country key contains information which the system uses to check entries
Withhld tax type This indicator is used to classify the different types of withholding tax
W/tax Code One or more "withholding tax codes" are assigned to each withholding tax type.
Currency Currency key for amounts in the system.
Valid from The date valid from
Minimum W/tax amount Minimum withholding tax amount. The withholding tax amount calculated if only posted if it exceeds this minimum amount.
Maximum W/tax amount Maximum withholding tax amount. If the withholding tax amount calculated exceeds this maximum, the system posts the maximum amount (and not the actual tax amount
Minimum base amount Minimum withholding tax base amount.
W/Tax bse exem.amount The withholding tax base exemption amount is deducted from the base amount before the withholding tax amount is calculated
2.2.2.12 Assign Withholding Tax Types to Company Codes
You assign withholding tax categories to company codes.
2.2.2.12.1 Use
To work with withholding tax .
2.2.2.12.2 Prerequisites
Company code
Tax code
2.2.2.12.3 Procedure
39. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Company Code Assign Withholding Tax Types to Company Codes
40. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code The company code is an organizational unit within financial accounting.
Withhld tax type This indicator is used to classify the different types of withholding tax.
Recipient type The type of recipient can be defined in the vendor master record
With/tax agent you tell the system that for this withholding tax type, the company code is entitled to withhold tax on behalf of a vendor
W/Tax obligated from Date from which.The company code is obligated to withhold tax for the given withholding tax type
Oblig. to W/Tax Until Date to which. The company code is obligated to withhold tax for the withholding tax type.
W/tax Number This is a number issued by the tax authorities per withholding tax type.
Subject to W/tax you tell the system that the company code for this withholding tax type is subject to withholding tax.
Self Withhldg agent the company code can withhold tax on its own behalf for this withholding tax type
Wxeption number Numbered assigned by the relevant authorities for exemption from withholding tax.
Exemption reas. used to classify different types of exemption from liability to a particular withholding tax.
Exemption rate Rate of exemption from withholding tax.
Exempt from Date from which withholding tax exemption applies.
Exempt to Date up to which withholding tax exemption applies.
2.2.2.13 Activate Extended Withholding Tax
You can activate extended withholding tax.
2.2.2.13.1 Use
To work with extended withholding tax.
2.2.2.13.2 Prerequisites
Company code
2.2.2.13.3 Procedure
41. Access the activity using the following navigation options:
Transaction Code SPRO
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Company Code Activate Extended Withholding Tax
42. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Company code The company code is an organizational unit within financial accounting.
Extended w/tax You select this indicator; you activate extended withholding tax processing.
2.2.2.14 Accounts for Withholding Tax to be Paid Over
You define the accounts for the withholding tax to be paid over.
2.2.2.14.1 Use
Used for posting extended withholding tax.
2.2.2.14.2 Prerequisites
Tax code
GL Account must exist in company code
2.2.2.14.3 Procedure
43. Access the activity using the following navigation options:
Transaction Code OBWW
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accounts for Withholding Tax to be Paid Over
44. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction WIT The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Withholding tax type Indicates a grouping of valuation areas to facilitate the administration of the table of standard accounts by minimizing the number of entries.
Withholding tax code Key which has a different meaning depending on the procedure. It is used to differentiate account determination.
Account The G/L account number identifies the G/L account in a chart of accounts.
2.2.2.15 Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
You can define the accounts for the withholding tax offsetting entry for the "grossing up" procedure .
2.2.2.15.1 Use
Used for posting extended withholding tax.
2.2.2.15.2 Prerequisites
Tax code
GL Account must exist in company code
2.2.2.15.3 Procedure
45. Access the activity using the following navigation options:
Transaction Code OBWU
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accts for W/hold.Tax for "Gross.Up" Offsetting Entry
46. On the Overview screen, make the following entries:
Field Name Description Usage Remarks
Transaction GRU The transaction keys are used to determine accounts or posting keys for line items which are created automatically by the system.
Withholding tax type Indicates a grouping of valuation areas to facilitate the administration of the table of standard accounts by minimizing the number of entries.
Withholding tax code Key which has a different meaning depending on the procedure. It is used to differentiate account determination.
Account The G/L account number identifies the G/L account in a chart of accounts.
2.2.2.16 Define Accounts for Self-Withholding Tax
You can define the accounts to which withholding tax is posted.
2.2.2.16.1 Use
Used for posting extended withholding tax.
2.2.2.16.2 Prerequisites
GL Account must exist in company code
2.2.2.16.3 Procedure
47. Access the activity using the following navigation options:
Transaction Code OBWS
IMG Menu IMG Menu Path :
Financial Accounting  Financial Accounting Global Settings  Withholding Tax Withholding Tax Extended Withholding Tax s  Accounts for Withholding Tax Accounts for Withholding Tax Define Accounts for Self-Withholding Tax
48. On the Overview screen, make the following entries: -
Witholding Tax Through MIRO/MRRL
Hi,
I have a Requiremnt where the Withholding Tax should not be calcualted for certain materials (based on Material Group) even if the Vendor/Invoicing Party is subjected to Witholding Tax.
I cant change the Vendor master, because witholding tax should be calculated for this Vendor for all other materials except the specified material.
Currently witholding tax gets calculated through FM FI_WT_ERS_INITIALIZATION. It mainly uses the LIFNR (Invoicing Party) to calculate withholding tax so if the IP is subjected to withholding tax, it will get calculated.
Is there any BADI or User Exit, where I can check for the Material Group of the PO line item and based on the that prevent the withoding tax from getting calculated.
Thanks & Regards
Rajanish ShettyHi,
1.- in program RMMR1MRS (transactiont MRRL) you have a call to fm MRM_INVOICE_VERIFICATION_ERS.
2.- fm MRM_INVOICE_VERIFICATION_ERS calls fm MRM_INVOICE_CREATE
3.- and fm MRM_INVOICE_CREATE calls MRM_FINAL_CHECK
4.- In fm MRM_FINAL_CHECK
you have:
-- call BADI to change withholding tax or vendor split table -
PERFORM whtax_split_update TABLES t_drseg
t_errprot
CHANGING rbkpv
xbuchen.
Best regards. -
Friends,
I have a question about 1099 witholding. We are configured with classic and extended witholding tax. Currently my company is not witholding tax, but now for only few vendors they want to witholding 30% tax and for rest not withold. How can I do this for just few vendors, and not others and where do I do.
Also when we withold tax, it should do automatic posting. How can I accomplish this and what account should I set debit and what as credit.
Please give me a solution.
Thanks for your help.
Ritu.Hi
Steps
1. Check withholding tax countries
2. Define official withholding tax code
3. Define business places
4. Maintain factory calendar
5. Assign factory calendars to business place
6. Define Ex. Withholding tax types for invoice postings
7. Define EX withholding tax types for payment posting
8. Define Ex. Withholding tax codes
9. Portray dependencies between tax types
10. Check recipient types
11. Maintain due dates
12. Assign Ex. Withholding tax types to Company code
13. Activate Ex. Withholding tax
14. Maintain surcharge calculation methods
15. Maintain surcharge Tax codes (separate tax codes)
16. Maintain surcharge rates (surcharge combined with basic WH tax codes)
17. Create a G/L a/C for Ex. Withholding tax
18. Define A/C for Ex. Withholding tax (OBWW)
19. Make changes in Vendor master (XK02)
20. Maintain Company Code Settings:
Path: IMG -> Logistic -> General -> Taxes on goods movement -> India -> Maintain
Company code settings
21. Specify the document type
22. Maintain number groups
23. Maintain number ranges
24. Assign number ranges to number group
25. Maintain number groups and SAP script form (for TDS certificates)
26. Maintain number ranges
27. Maintain number ranges to number groups
28. Postings (F-43)
29. Enter remittance challan
30. Enter bank challan
31. Printing of TDS certificates
32. Printing of annual return
regards,
R.Ramakrishnaraj -
India Witholding Tax - rounding rules
We have come across a legal requirement for our India branch where WHT should be rounded
up.
For example:
Even if the witholding tax amount is Indian Rs. 10.01 this would get rounded off (up) to the next rupee to become
Rs. 11.00.
Also this is used for- Tax Deduction at Source scenario.
I am not a fico configurer however I am covering for a colleague. I would greatly appreciate some help with this change., as soon as possible.
I believe its actually a fairly small configuration in the extended witholding tax section of SPRO.
Please can you kindly send me detailed Step by Step instructions on how to configure the above request?
Thanks very much,
Warm Regards
Edited by: Jays77 on Dec 21, 2010 4:48 PMHi,
If you are using the Extended WHT
GO SPRO>Financial Accounting -> FA Global Settings> Withholding Tax> Extended WHT> Calculation -> WHT Type -> Define Withholding Tax Type for Invoice Posting and Define Withholding Tax Type for Payment Posting (For Payment)
There you need to select under Rounding rule tab Rounding w/tax amount Up tab.
Regards,
Kishore
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