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Define Withholding Tax Codes

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Define Withholding Tax Codes
Stechies

Financial Accounting
 Financial Account Global Setting
  Witholding Tax
   Extended Withholding Tax
    Calculations
     Withholding Tax Codes
      Define Withholding Tax Codes

Here we define the tax base amount that will be subject to tax and the perentage of the tax that will be applicable for calculating the tax on the base amount.

Withholding Tax Codes

Withholding Tax Codes

Withholding Tax Codes

Maintain Surcharge Calculation Methods
Financial Accounting
 Financial Account Gloabal Setting
  Witholding Tax
   Extended Withholding Tax
    Calculations
     India
     Surcharges
      Maintain Surcharge Calculation methods

In this IMG activity, you specify which method you want to use to handle surcharge taxes, according to whether you wish your business to show basic withholding tax and surcharges separately, or whether they can be combined. The SAP System offers you two choices:

• You can define tax codes that contain both the basic tax and the surcharge tax.
• You can define separate tax codes for basic tax and surcharge tax respectively.

Some tax offices prefer you to show surcharges separately from basic withholding tax; others prefer the two to be rolled into one. You cannot customize this information at business place (tax office) level, so we recommend that you use the method that is preferred by the majority of your tax offices.

For each company code, specify which method you want.

Under this option we have to either tick the box against each company code or leave it blank.
This Controls whether surcharge tax rates are maintained independently of basic withholding tax,

1) Check box ticked:   Means Separate tax types and tax codes  for  basic withholding tax  and     surcharge.
2) Check box not ticked: Combined  tax  types and tax code for  basic withholding tax  and surcharge.

Maintain Surcharge Tax Codes
Financial Accounting
 Financial Account Gloabal Setting
  Witholding Tax
   Extended Withholding Tax
    Calculations
     India
     Surcharges
      Maintain Surcharge Tax Codes

In this IMG activity, you maintain the tax codes that you want to use for surcharges.


Assign Withholding Tax Types to Company Codes

Financial Accounting
 Financial Account Gloabal Setting
  Witholding Tax
   Extended Withholding Tax
     Company Code
     Assign Withholding Tax Types to Company Codes

In this activity the withholding tax types are defined to company codes.

Withholding Tax Codes


Activate Extended W/Tax in Co. Code
Financial Accounting
 Financial Account Gloabal Setting
  Witholding Tax
   Extended Withholding Tax
     Company Code
      Activate Extended W/Tax

Withholding Tax Codes

Activate the W/Tax by clicking the box opposite to the company code.


Define a/cs for w/tax to be paid over
Financial Account Gloabal Setting
 Witholding Tax
  Extended Withholding Tax
     Posting
       Define a/cs for w/tax to be paid over

Withholding Tax Codes


Specify Document Types (Account Payable)
Financial Account Gloabal Setting
 Witholding Tax
  Extended Withholding Tax
    Posting
     India
     Remittance Challan
      Document Types
      Specify Document Types (Account Payable)

Withholding Tax Codes

Any kind of document type can be used.


Maintain No. Groups
Financial Account Global Setting
 Withholding Tax
  Extended Withholding Tax
    Posting
     India
     Remittance Challan
      Maintain No Groups

Withholding Tax Codes


Assign Number Range to Number Groups
Financial Account Global Setting
 Withholding Tax
  Extended Withholding Tax
    Posting
     India
     Remittance Challan
     Assign Number Range to Number Groups

Withholding Tax Codes


Maintain Number Ranges
Financial Account Global Setting
 Withholding Tax
  Extended Withholding Tax
    Posting
     India
     Maintain Number Ranges
In this activity we define the number range against each number group and that will be used by the remittance challan.

Withholding Tax Codes

Select task group from task bar.

Withholding Tax Codes

Change the tax to be used by selecting the maintain tax from the drop down menu Group.
Select the group to which the number range to assigned by clicking the box.

Withholding Tax Codes

Go to the option maintain interval through the drop down menu as shown above.

Withholding Tax Codes

Maintain the number range that is to be used.

Maintain Number Groups and SAP Script Forms

Financial Account Global Setting
 Withholding Tax
  Extended Withholding Tax
    Posting
     India
    W/Tax certificate for Customers/Vendors
     Maintain No. Groups and SAP Script Forms

In this activity we define which SAP script forms the business would like to use for printing the tax forms for customers and vendors.

Withholding Tax Codes


Assign Number Range to Number Groups
Financial Account Global Setting
 Withholding Tax
  Extended Withholding Tax
    Posting
     India
    W/Tax certificate for Customers/Vendors
     Assign Number Range To Number Groups

In this IMG activity, you assign a number range (through a number key) to each number group that you have defined in the previous activity.

Withholding Tax Codes


Maintain Number Ranges
Financial Account Global Setting
 Withholding Tax
  Extended Withholding Tax
    Posting
     India
    W/Tax certificate for Customers/Vendors
       Maintain Number Ranges


Set the tax code and tax type in the Vendor Master Record

The same is to be set under the screen withholding tax accounting

Withholding Tax Codes

Maintain Co Code Setting

Logistics-General
 Tax on Goods Movement
    India
    Basic Setting
     Maintain Co Code settings

Withholding Tax Codes

Once the Tax Codes ad Tax Types are assigned to the vendor master records the system will calculate the TDS automatically when the bill is posted. The TDS so deducted should be remitted to the Govt. To remit the TDS to the Gvt following procedure should be followed.


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