Extended Withholding Tax: Customizing
Extended Withholding tax : You can take the help of following for customising Extended Withholding tax.
You must make various settings in Customizing and the master data of the business partners concerned in each of the company codes. Please maintian following settings.
Task-1 Check Extended Withholding Tax Countries
IMG ⇒ Financial Accounting ⇒Financial Accounting Global Settings ⇒Withholding Tax ⇒Extended Withholding Tax ⇒Basic Settings ⇒Check Withholding Tax Countries
The withholding tax country is needed for printing the withholding tax form. Since the list of country IDs prescribed by law is different from the list in the system, you have to define the withholding tax countries again.
Task-2 Define Official Withholding Tax Codes
IMG ⇒Financial accounting ⇒Financial Accounting Global Settings ⇒Withholding Tax ⇒Extended Withholding Tax ⇒Basic Settings ⇒Define Official Withholding Tax Codes
If your national tax authorities use withholding tax keys to identify the different withholding tax types, you can define these official names for your tax codes here.
192 ⇒ TDS on Salaries
194C ⇒ TDS on Contractors
193 ⇒ TDS on Interest on Securities
194I ⇒ TDS on Rent
194J ⇒ TDS on Professional Services
Task-3 Define Reasons for Exemption
IMG ⇒Financial accounting ⇒Financial Accounting Global Settings ⇒Withholding Tax ⇒Extended Withholding Tax ⇒Basic Settings ⇒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.
Task-4 Check Recipient Types
Also See: What is General Ledger Planning in SAP?
IMG ⇒Financial accounting ⇒Financial Accounting Global Settings ⇒Withholding Tax ⇒Extended Withholding Tax ⇒Basic Settings ⇒Check Recipient Types
The type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.
Task-5 Define Business Places
IMG ⇒Financial accounting ⇒Financial Accounting Global Settings ⇒Withholding Tax ⇒Extended Withholding Tax ⇒Basic Settings ⇒India ⇒Define Business Places
Create a business place for each tax deduction account number (TAN) that your company has. In the address data (which is printed on the vendor withholding tax certificates) maintain the tax office’s address.
Also See: SAP Down Payment Process an Overview