Extended Withholding tax configuration (1)

Here we configure the various tax keys which are

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: for your tax codes here. Here we configure the various tax keys which are applicable in different scenarios. For example:Withholding tax code on Contractors, Withholding tax code on Commission and brokerage Withholding tax code on Professional & Technical service Withholding tax is also called TDS (Tax deducted at source) in some countries. Update the following:- www.sapficoconsultant.com Page 7 of 57 www.sapficoconsultant.com Page 8 of 57 Click on Update the following:- Click on www.sapficoconsultant.com Page 9 of 57 1.3 Define Reasons for Exemption IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Basic Settings à Define Reasons for Exemption Here we define reasons for exemption from withholding tax. This indicator can be entered in the vendor master record or in the company code withholding tax master record information. Click on Click on www.sapficoconsultant.com Page 10 of 57 1.4 Check Recipient Types IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Basic Settings à Check Recipient Types This is required to categorize the vendor. For example:If the vendor is a company or, Other than a company. This configuration can be done after step number 2.1.2 Click on www.sapficoconsultant.com Page 11 of 57 Click on 1.5 Define Business Places IMG à Financial Accounting à Financial Accounting Global Settings à Withholding Taxà Extended Withholding Tax à Basic Settings à India à Define Business Places Business places are the location where tax is deducted. A company has various offices at Head Office, Regional offices etc. Tax can be deducted at any of these places. Withholding tax tracking is thus done based on business places. The use of business places is mandatory. Create a business place for each tax deduction account number (TAN) that your company has. Update the following:- Click on www.sapficoconsultant.com Page 12 of 57 Update the following:- Click www.sapficoconsultant.com Page 13 of 57 Click Click on Click Click on Update the following:- www.sapficoconsultant.com Page 14 of 57 Click www.sapficoconsultant.com Page 15 of 57 Click Click on 2. Calculation 2.1 Withholding Tax Type The withholding tax type controls the essential calculation options for extended withholding tax. While the withholding tax code only controls the percentage rate of the withholding tax. You must enter the withholding tax type in the customer/vendor withholding tax master data and...
View Full Document

This note was uploaded on 11/07/2012 for the course SCIENCE 102 taught by Professor As during the Spring '12 term at Granite State College.

Ask a homework question - tutors are online