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Extended Withholding Tax Configuration Document

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Extended Withholding Tax Configuration Document
Stechies

1 INTRODUCTION ..................................10

1.1 OVERVIEW..................................10

2 CONFIGURATION DETAILS OF EXTENDED WITHHOLDING TAX..................................10

2.1 BASIC SETTINGS..................................10

2.1.1 Check Withholding Tax Countries..................................10

2.1.2 Define official withholding tax codes..................................11

2.1.3 Define reasons for exemption..................................11

2.1.4 Check Recipient Types..................................12

2.1.5 Check Income Types..................................15

2.1.6 Change Message Control for Withholding Tax..................................15

2.2 CALCULATION..................................16

2.2.1 Withholding Tax Type..................................16

2.2.1.1 Define Withholding Tax Type for Invoice Posting/payment posting..................................16

2.2.1.2 Define Exchange Rate Type for Withholding Tax Type..................................20

2.2.1.3 Define Rounding Rule for Withholding Tax Type..................................20

2.2.1.4 Assign Condition Type to Withholding Tax Type..................................21

2.2.2 Withholding Tax Codes..................................21

2.2.2.1 Define withholding tax codes..................................21

2.2.2.2 Define Formulas for Calculating Withholding Tax..................................23

2.2.3 Withholding Tax Base Amount..................................23

2.2.3.1 Define Processing Key for Modified Net Amount (No Configuration)..................................23

2.2.3.2 Define Processing Key for Modified Tax Amount (No Configuration)..................................23

2.2.3.3 Portray Dependencies between Withholding Tax Types (No Configuration)..................................24

2.2.4 Minimum and Maximum Amounts..................................24

2.2.4.1 Define Min/Max Amounts for Withholding Tax Types..................................24

2.2.4.2 Define Min/Max Amounts for Withholding Tax Codes..................................25

2.3 COMPANY CODE..................................25

2.3.1 Assign Withholding Tax Types to Company Codes..................................25

2.3.2 Activate Extended Withholding Tax..................................27

2.4 POSTINGS..................................28

2.4.1 Define Accounts for Withholding Tax..................................28

2.4.1.1 Define accounts for withholding tax to be paid over..................................28

2.4.1.2 Define accounts for Grossing up entry (No Configuration)..................................28

2.4.1.3 Define Accounts for Self-Withholding Tax (No Configuration)..................................29

2.4.1.4 Define Accounts for Withholding Tax Offsetting Entry (No Configuration)..................................29

2.4.2 Remittance Challan..................................29

2.4.2.1 Document Types..................................29

2.4.2.2 Numbering of Remittance Challan..................................30

2.4.2.2.1 Maintain Number Groups..................................30

2.4.2.2.2 Assign Number Ranges to Number Groups..................................30

2.4.2.2.3 Maintain Number Ranges..................................31

2.4.3 Numbering of EWT Certificates..................................33

2.4.3.1 Maintain Number Groups..................................33

2.4.3.2 Assign Number Ranges to Number Groups..................................33

2.4.3.3 Maintain Number Ranges..................................34

Overview

This document covers the configuration details for Extended Withholding Tax (EWT) which is commonly understood as Tax Deduction at Source (TDS) in India. The system settings required for EWT are maintained here.

 

 


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Comments

  • 18 Oct 2013 12:24 am
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