Withholding tax

1. Check Withholding tax countries

Path :SPRO-Financial Accounting Financial accounting global

settings-With holding tax-Extended withholding tax-basic settings-
Check with holding tax countries

New Entries

Give Country as IN
Give Withholding tax Country as IN
Give Description as India

2. Define Withholding tax Keys

Path :SPRO-Financial Accounting Financial accounting global settings-

With holding tax-Extended withholding tax-basic settings-Define
Withholding tax keys.

Give Country as IN
Give Off. Key as : 194J
Give Descprition as : TDS on Professional and Technical Fees

3. Define Business Place/ Section code

Path :SPRO-Financial Accounting Financial accounting global settings-
With holding tax-Extended withholding tax-basic settings India
Define Business Place

New entries
Give Company code
Give Section code
4. Define business place

Path: Form the menu select System Services Table

maintenance Extended table maintenance (Tr cod is SM30)

Table/view :J_1BBRANCV
Select maintain button
Give the company code :
Enter
Select new entries button
Business place :
Description :

5. Assign Section code to Business place

Tcode: SM30

Table /View :
Select maintain button
Give the company code :
Enter
For section code :
Business place :

6. Define withholding tax type for Invoice posing:

Path :SPRO-Financial Accounting Financial accounting global
settings-With holding tax-Extended withholding tax Calculation --
With holding tax type -- Define with holding tax type for invoice
posing

Give the country key :IN

Enter
Select new entries button
With holding tax type :D1
Description : section 194J Prof & Tech fees posting
Select gross amount radio button
Select with holding tax commercial rounding radio button
Select post with hold tax amount check box
Select no accumulation radio button
Save
7. Define withholding tax for payment posing
Path :SPRO-Financial Accounting Financial accounting global
settings-With holding tax-Extended withholding tax Calculation --
With holding tax type -- Define withholding tax for payment posing

Give the country key :IN

Enter
Select new entries button
With holding tax type :DA
Description : section 194J Prof & Tech fees
Select gross amount radio button
Select withhold tax commercial rounding radio button
Select no accumulation radio button
Select post with holding tax amount check box
Select central invoice propitiate radio button

8. Define withholding tax codes

Path :SPRO-Financial Accounting Financial accounting global

settings-With holding tax-Extended withholding tax Calculation
With hold tax codes Define with holding tax codes

Give the country key :IN

Enter
Select new entries button
With holding tax type :D1
With hold code :D1
Description : section 194J Prof & Tech fees @ 10%
Official with holding tax :section 194 C
Base amount percentage subject to tax :100
With holding tax rate :10
Posing indicator :selection 1 (standard posting :Bank
/Vendor /Customer line item reduced
9. Check recipient type

Path :SPRO-Financial Accounting Financial accounting global

settings-With holding tax-Extended withholding tax Basic settings
Check recipient types

Give the country key :In for India

Enter
Select new entries button
With holding tax type :D1
Recipient type :CO
Text :company

10. Maintain tax due dates

Path :SPRO-Financial Accounting Financial accounting global

settings-With holding tax-Extended withholding tax Basic settings
India Maintain tax due dates

Select new entries button

Country :IN
Official with holding tax key :194j
Recipient type :CO
No.of days unit tax due date :777
Save

11. Assign withhold tax types to company code

Path :SPRO-Financial Accounting Financial accounting global

settings-With holding tax-Extended withholding tax-- company code
Assign with holding tax types to company code

Select new entries button

Company code :AML
Withholding tax type :D1
Recipient type :CO
Select with hold tax agent check box
Withholding tax obligated firm :01.04.2016
Obligated to with hold tax until :31.03.9999
Save

12. Activate extended withholding tax

Path :SPRO-Financial Accounting Financial accounting global
settings-With holding tax-Extended withholding tax-- company code
Activate extended withholding tax

Select position button

Give the company code :
 Enter
For company code zzzz select extended with holding tax check box
Save

13. create 2 General ledger accounts : FS00

a) Audit fees == Expences
b) 194J - Professional & technical fees Payable = Liability

14. Assignment of accounts for Automatic postings:

Path :SPRO-Financial Accounting Financial accounting global settings-
With holding tax-Extended withholding tax -- Posting Accounts for
withholding tax Define accounts for withholding tax to paid over
Give the Chart of Accounts :
Enter
Select with holding tax code check box
And with withholding tax type check box
Save
Withholding tax type :D1
Withholding tax code :D1
Account : 194j tds gl a/c no

15. Maintain company code settings

Path :SPRO-Logistic- General Tax on goods movement India Basic

settings Maintain company code settings

Select new entries button

Give the company code
Save

16. Specify document type for remittance challans

Path :SPRO-Financial Accounting Financial accounting global settings-

With holding tax-Extended withholding tax -- Posting India
Remittance challans Document types Specify document type
(Accounts payable)
Select new entries button
Company code
Remittance challan document type :SA

17. Maintain number groups

Path :SPRO-Financial Accounting Financial accounting global
settings-With holding tax-Extended withholding tax -- Posting India
Remittance challans Maintain number groups

Select new entries button

Company code :
Section code :
Official withholding tax key :194j
Number group :08
Save

18. Assign number ranges to Number groups: ( Tr code is J1INO

Path :SPRO-Financial Accounting Financial accounting global settings-
With holding tax-Extended withholding tax -- Posting India
Remittance challans Assign number ranges to Number groups
Select new entries button
Internal number range group :08
Internal challan :08
Save

Maintain number ranges:(Tr code is J1INUMBER)

Path :SPRO-Financial Accounting Financial accounting global settings-

With holding tax-Extended withholding tax -- Posting India
Remittance challans Maintain number rages
Same path
Select maintain groups button
Select group without tax having 08 check box
From the menu select Interval Maintain
Give the company code :
Enter
Select interval button
Year :2016
From no. :1
To number :100000
Enter & Save
Assign remittance challan number group to Business place

Tr code is (SM30)

Give the Table /View :J_1IEWTNUMGR

Select maintain button
Select new entries button
Company code :
Business place :
Official with holding :194j Tax key
Number group :08
Save

Assign remittance challan number group to section code :(SM30)

Table /view :J_1IEWTNUMGR_1

Select maintain button
Select new entries button
Company code
Selection code :
Official withholding :194j
Number group :08
Save

Maintain number groups and SAP script forms

SPRO-Financial Accounting Financial accounting global settings-With

holding tax-Extended withholding tax Postings India Withholding tax
certificates for Vendors and Customers Maintain number groups as
SAP script forms

Select new entries button

Company code :
Section code :
Official withholding tax key :194J
Form :J_11EWT_CERT
No group :09
Save
Press enter to save in your request

Assign number ranges to number groups

SPRO-Financial Accounting Financial accounting global settings-With

holding tax-Extended withholding tax Postings India Withholding tax
certificates for Vendors and Customers Assign Number ranges to
number groups

Same path
Select new entries button
Number group :09
Internal number range :09
Save
Press enter to save in your request

Maintain number ranges

SPRO-Financial Accounting Financial accounting global settings-With
holding tax-Extended withholding tax Postings India Withholding tax
certificates for Vendors and Customers Maintain Number ranges
Select maintain groups button
Select group without text having 09 check box
From the menu select interval maintain
Company code :
Enter
Select interval button
Year :2016
From number :100001
To number :200000
Enter & Save

Assign withholding tax code in Vendor master

Path :Accounting Financial accounting Accounts payable Master
records-Maintain centrally change (Tr code is FK02)

Give the vendor no. :

Company code :
Select with hold tax check box
Enter
Give the withhold tax country :IN (India)
With holding tax type :D1
Withholding tax code :D1
Select liable check box
Recipient type :CO

Select CIN details button

Ignore the warning message press enter
Select withholding tax tab
Give the PAN of vendor :AP4C12345C
Select back arrow
Save

END USER AREA

VENDOR INVOICE POSTING = F-43

SIMULATE
SAVE

Create remittance challan

Path :Accounting Financial accounting Accounts payable With

holding tax India Extended with holding tax Remittance of
withholding tax-Create remittance challan (Tr code is J1INCHLN)

Company code :
Fiscal year :
Business plane/ Second code :
Posting date :
Section :194j
Recipient type :CO
Document date :
Posting date :
Bank account :
Execute (F8)
Enter
Business area :
Text :
Double click on all open items (by default one rupee can not see in SAP zero)
Select document overview button
Double click on the line item
SBI current A/c with one rupee
Amount :*
Save
Select clearing document button
Select back arrow

Enter Bank challan

Path: Same path ( Tr code is J1INBANK)

Give the company code :

Fiscal year :
Challan clearing number :
(Once we select challan clearing number, Internal challan number and internal
challan date will be update automatically)
Base challan no . :
Bank challan date :
Bank key :
Execute

Print TDS Certificate

Path :Up to extend with holding tax the path is same Certificates Print
(J1INCERT)
Company code ;
Fiscal year :
Business area /Section code :
Section :
Posting dates :
Bank challan dates :
Certificate date :
Signatory :
Designation :
Place of printing :
Execute
Select print button
Output device :LP01
Select print button