Configuration - TDS Surcharge & E-TDS

11/23/2017 Configuration : TDS Surcharge & e-TDS
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Conguration : TDS Surcharge & e-

TDS
This question is answered
Hello Tax Experts,
I am configuring TDS.
Business Scenario 1:
https://archive.sap.com/discussions/thread/1374551 1/13
as per Govt of India, Surcharge on TDS is applicable only when it reaches certain limit. for example, in case
of individual payments on 194C, if the total payment exceeds INR 8Lacs, then the Surcharge is applicable. in
the start we are not sure whether the Vendor would cross the limits.
How do i configure, if i want to start deducting Surcharge since start, when the Vendor crosses the limits.
Business Scenario 2:
Please advice / help me in setting configuration for e_TDS.
(https://people.sap.com/hussein.merchant)
Hussein Merchant (https://people.sap.com/hussein.merchant)

June 13, 2009 at 14:21 PM
0 Likes
Correct Answer
IM Kwatra (https://people.sap.com/im.kwatra) replied

(https://people.sap.com/im.kwatra)
June 12, 2009 at 07:56 AM
Hello Dear
Use separate tax codes for TDS,Surcharge

check the dependency as TDS.
Configure the rates for Contractor using

formula as follows:
Create W/tax Type as e.g. C1 for Basic Tax,

S1 for Surcharge for Invoice Posting with
the following settings :
Particulars - C1 - S1
Base Amt - Gross - Gross
Post w/tax - tick - tick
Inherit base - nil - tick
Accumulation - yes - yes
Create W/tax Code as e.g. C1 for Basic

Tax, S1 for Surcharge with the following
settings :
%subj to tax - 100 - 100
w/tax rate - 2.00 - nil
w/tax formula nil tick

w/tax formula - nil - tick
Define formula for calc w/tax Code S1:
upto base amt - w/tax rate - Reduce Base

Amt
800000 - nil - nil
99999999999 - 10.00 - 800000
Protray Dependency b/w w/tax types :
C1 - no dependency
S1 - dependent on C1
this is for Inherit base control, also maintain

dependency between them
Hope it Solves
Cheers
IMK
0
View this answer in context (/discussions/message/7690873#7690873)
Helpful Answer by
Kannusamy S (/discussions/message/7690388#7690388) , Kannusamy S
(/discussions/message/7691663#7691663)
oking for? View more on this topic (https://go.sap.com/community/tag.html?

43523242285841826221) or
tps://answers.sap.com/questions/ask.html?primaryTagId=648420875567243523242285841826221)
6 replies
Helpful Answer
(https://people.sap.com/kannusamy.s)
Kannusamy S (https://people.sap.com/kannusamy.s)replied
February 29, 2012 at 13:55 PM

Hi,
Scenario 1:
1. Create one Tax Type for either invoice posting or

payment posting or both.
Let us say we have created one tax type (K1) for Invoice
posting
Path: IMG -
Financial Accounting -
Financial Accounting Global Settings -
Withholding Tax -
Extended Withholding Tax -
Calculation Withholding
Tax Type -
Define Withholding Tax Type for Invoice Posting
Assumed Tax Rate is 5% on Invoice amount exceeds Rs.

8,00,000.
2. Create one Tax Code (C1) for the Tax Type K1
Path: MG -
Withholding Tax -
Tax Codes -
Define Withholding Tax Codes
Give the following inputs in that screen
WT Name WT Type Tax Code Base Amount Calculation
1. Basic K1 C1 100% 5%
3. Define Min/Max Amounts for Withholding Tax Codes
Path: MG -
Withholding Tax -
Calculation Minimum and
Maximum Amounts -
Define Min/Max Amounts for Withholding Tax Codes
Here give "Minimum base amount" Rs.8,00,001
4. Go to Vendor Master, mention your tax type and tax code

(K1,C1) select liable check box and save the data.
5. Go to FB60 and post an invoice.
Regards,
Kannusamy S
likes
Hussein Merchant (https://people.sap.com/hussein.merchant)replied June 12, 2009 at 07:05 AM
Dear KS,
i tried setting min/max amts, but the while posting invoice only those invoice which are
8Lacs & above get subject to Surcharge.
but the rule say "Once the vendor crosses 8Lacs of turnover, then Surcharge is applicable
for invoice thereon, irrespective of min/max amts.
please advice.
0
likes
Hussein Merchant (https://people.sap.com/hussein.merchant)replied June 12, 2009 at 07:37 AM
Hello Experts,
please help!
0
likes
Correct Answer
(https://people.sap.com/im.kwatra)
IM Kwatra (https://people.sap.com/im.kwatra)replied
June 12, 2009 at 07:59 AM

Hello Dear
Use separate tax codes for TDS,Surcharge check the dependency

as TDS.
Configure the rates for Contractor using formula as follows:
Create W/tax Type as e.g. C1 for Basic Tax, S1 for Surcharge

for Invoice Posting with the following settings :
Base Amt - Gross - Gross
Post w/tax - tick - tick
Inherit base - nil - tick
Accumulation - yes - yes
Create W/tax Code as e.g. C1 for Basic Tax, S1 for Surcharge

with the following settings :
%subj to tax - 100 - 100
w/tax rate - 2.00 - nil
w/tax formula - nil - tick
Define formula for calc w/tax Code S1:
upto base amt - w/tax rate - Reduce Base Amt
800000 - nil - nil
99999999999 - 10.00 - 800000
Protray Dependency b/w w/tax types :
C1 - no dependency
S1 - dependent on C1
this is for Inherit base control, also maintain dependency between

them
Hope it Solves
Cheers
IMK
0
likes
The message was moderated
Helpful Answer
(https://people.sap.com/kannusamy.s)
Kannusamy S (https://people.sap.com/kannusamy.s)replied
February 29, 2012 at 13:55 PM

Hi,
Please follow the following procedures:
1. Create 2 Tax Types for either invoice posting or payment

posting or both.
Let us say we have created one tax types (K1and K2 for

Invoice posting
Path: IMG -
Withholding Tax -
Tax Type -
Define Withholding Tax Type for Invoice Posting
Assumed Basic TDS Rate is 5% on Invoice amount and

Surcharge is 1% (When invoice amount exceeds Rs. 8,00,0000
2. Create 2 Tax Codes (C1and C2) for the Tax Type K1 and
K2
Path: MG -
Withholding Tax -
Tax Codes -
Define Withholding Tax Codes
Give the following inputs in that screen
WT Name WT Type Tax Code Base Amount Calculation
1. Basic K1 C1 100% 5%
2. SC K2 C2 5% 1%
3. Define Min/Max Amounts for Withholding Tax Codes
Path: MG -
Withholding Tax -
Calculation Minimum and
Maximum Amounts -
Define Min/Max Amounts for Withholding Tax Codes
In K1, C1: Dont give any amount in u201CMinimum Base

Amountu201D field.
In K2, C2: Give 40,000.05 in u201CMinimum Base

Amountu201D field
Note: Basic TDS is taxable on the whole valued of invoice

amount irrespective of any exemptions.
Surcharge is taxable only when invoice amount exceeds

Rs. 8,00,000
4. Go to Vendor Master, mention your tax types and tax codes

(K1,C1 and K2,C2) select liable check boxes and save the
data.
5. Go to FB60 and post an invoice.
Regards,
Kannusamy S
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Configuration - TDS Surcharge & E-TDS

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11/23/2017 Configuration : TDS Surcharge & e-TDS

Training (https://www.sap.com/training-certi cation.html)

Archived discussions are read-only. Learn more about SAP Q&A

Conguration : TDS Surcharge & e-

Hello Tax Experts,

Please advice / help me in setting configuration for e_TDS.

Hussein Merchant (https://people.sap.com/hussein.merchant)

IM Kwatra (https://people.sap.com/im.kwatra) replied

Use separate tax codes for TDS,Surcharge

Configure the rates for Contractor using

Create W/tax Type as e.g. C1 for Basic Tax,

Base Amt - Gross - Gross

Post w/tax - tick - tick

Inherit base - nil - tick

Accumulation - yes - yes

Create W/tax Code as e.g. C1 for Basic

%subj to tax - 100 - 100

w/tax rate - 2.00 - nil

w/tax formula nil tick

Define formula for calc w/tax Code S1:

upto base amt - w/tax rate - Reduce Base

800000 - nil - nil

99999999999 - 10.00 - 800000

Protray Dependency b/w w/tax types :

this is for Inherit base control, also maintain

oking for? View more on this topic (https://go.sap.com/community/tag.html?

February 29, 2012 at 13:55 PM

1. Create one Tax Type for either invoice posting or

Financial Accounting Global Settings -

Extended Withholding Tax -

Define Withholding Tax Type for Invoice Posting

Assumed Tax Rate is 5% on Invoice amount exceeds Rs.

2. Create one Tax Code (C1) for the Tax Type K1

Financial Accounting Global Settings -

Extended Withholding Tax -

Define Withholding Tax Codes

Give the following inputs in that screen

WT Name WT Type Tax Code Base Amount Calculation

3. Define Min/Max Amounts for Withholding Tax Codes

Financial Accounting Global Settings -

Extended Withholding Tax -

Calculation Minimum and

Define Min/Max Amounts for Withholding Tax Codes

Here give "Minimum base amount" Rs.8,00,001

4. Go to Vendor Master, mention your tax type and tax code

5. Go to FB60 and post an invoice.

Hussein Merchant (https://people.sap.com/hussein.merchant)replied June 12, 2009 at 07:05 AM

Hussein Merchant (https://people.sap.com/hussein.merchant)replied June 12, 2009 at 07:37 AM

June 12, 2009 at 07:59 AM

Use separate tax codes for TDS,Surcharge check the dependency

Configure the rates for Contractor using formula as follows:

Create W/tax Type as e.g. C1 for Basic Tax, S1 for Surcharge

Base Amt - Gross - Gross

Post w/tax - tick - tick

Inherit base - nil - tick

Accumulation - yes - yes

Create W/tax Code as e.g. C1 for Basic Tax, S1 for Surcharge

%subj to tax - 100 - 100

w/tax rate - 2.00 - nil

w/tax formula - nil - tick

Define formula for calc w/tax Code S1:

upto base amt - w/tax rate - Reduce Base Amt

800000 - nil - nil