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Withholding Tax Configuration – Country India Version

Defining Withholding Tax Type for ECESS at

payment PostingThis tax type is used for calculating Education Cess (ECESS) on tax and posting the tax amount at the timeof creating invoice. The configuration is similar to the previous section

except that the field –

Inherit base should be checked. This field initiates ECESS to be calculated on base amount.Following WHT types for ECESS at payment

posting are to be maintained. WHT Tax Type Des cription EC ECESS PMT– CONTRACTORS P MT – U/S 194 CESECESS PMT– SUB CONTRACTORS

PMT – U/S 194 CEHECESS PMT– COMMISSION PMT – U/S 194HEIECESS PMT - RENT PMT – U/S 194IEJECESS PMT– PROF. FEES PMT – U/S 194JMaintain Recipient typesThe

type of recipient categorizes the vendor, which is necessary for printing the withholding tax form.
IMG: >> Withholding Tax Withholding Tax

Maintain Recipient Types. Please note that this customization is notavailable in Extended WHT path.
SAP DEVELOPER NETWORK | sdn.sap.com BUSINESS PROCESS EXPERT COMMUNITY

| bpx.sap.com © 2008 SAP AG 10

Withholding Tax Configuration – Country India Version

Check Recipient typesThis process will define the recipient type for tax payment and tax reporting. It will be assigned to the vendormaster.

Note: Maintain the Recipient types for all Withholding types defined in the previous sections.

Maintaining tax due datesThis process is to identify the tax payable due date from the date of

deduction / posting. Generally, tax hasto be remitted within 7 days from month end.
IMG: >> Basic Settings India Maintain Tax Due Dates

SAP DEVELOPER NETWORK | sdn.sap.com BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com © 2008 SAP AG 11

Withholding Tax Configuration – Country India Version

Maintaining rounding rule for withholding tax types The purpose is to maintain the rounding rule during posting.

Withholding Tax Code
Define Withholding tax codeThe rates are maintained through tax codes. It contains Base withholding tax rate and surcharge on baseWHT rate.The

rates are maintained through tax codes. It contains Base withholding tax rate and surcharge on baseWHT rate. WHT type WHT co dePercentage (on ta x) Posting Indicator

With holding Tax rate CI CI 100 1 2SI SI 1 00 1 1HI HI 100 1 10 II II 100 1 20JI JI 10 0 1 30CP CP 100 1 2 SP SP 100 1 1HP HP 100 1 10IP IP 100 1 20JP JP 100 1 30Defi

ne Withholding tax code for ECESS WHT type WHT co de Percentage (on ta x) Posting Indicator With holding Tax ra te CE CI 100 1 3SE SI 100 1 3HE HI 100 1

3IE II 100 1 3JE JI 1 00 1 3EC CP 100 1 3
SAP DEVELOPER NETWORK | sdn.sap.com BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com © 2008 SAP AG 12

Withholding Tax Configuration – Country India Version

ES SP 100 1 3EH HP 100 1 3EI IP 100 1 3 EJ JP 100 1 3 Surcharge Maintain surcharge Calculation MethodsThis will

define the surcharge calculation methods. Select the surcharge checkbox across the desiredcompany code. In our example, it is ‘BH’.
IMG: >> Calculation >> India >> Surcharge

SAP DEVELOPER NETWORK | sdn.sap.com BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com © 2008 SAP AG 13

Withholding Tax Configuration – Country India Version

Maintain surcharge Tax RatesThis activity to identify the tax codes that have surcharges attached to it.

Company code WH T Type WHT Code Recipient type Surch arge Rate BH CI, SI, HI, II, JI CI, SI, HI, II, JI CO 1 0BH CI, SI, HI, II, JI CI, SI, HI, II, JI OT 1 0BH CP, SP, HP, IP, JP CP, SP, HP, IP, JP

CO 10BH CP, SP, H P, IP, JP CP, SP, HP, IP, JP OT 10BH CE, SE, HE, IE, JE CE, SE, HE, IE, JE CO 1 0BH CE, SE, HE, IE, JE CE, SE, HE, IE, J E OT 10BH EC, ES, EH, EI, EJ EC, ES, E H, EI, EJ CO 10BH

EC, ES, EH, EI, EJ E C, ES, EH, EI, EJ OT 10
Note: From this section, most of the configuration requires maintenance of tables directly. It is always better tocheck the access for these tables in advance.

Education Cess Define Separate Tax code for Education CessThis activity is required for getting the value of ECESS printed on the TDS certificate.Table Nam e J_1IEWT_ECFLA GMaintain ECESS

for company Code ‘BH’Maintain ECESS Tax codeThis activity is required for getting the correct value of ECESS printed. ECESS value combination with taxtype and tax code needs to be

maintained.Table Na me J_1IEWTECESS Company code WH T Type WHT Code BH CI, SI, HI, II, JI CI, SI, HI, II, JIBH C P, SP, HP, IP, JP CP, SP, HP, IP, JPBH C E, SE, HE, IE, JE CE , SE, HE, IE, JEBH E

C, ES, EH, EI, EJ EC , ES, EH, EI, EJ Settings for Annual Returns The following activities are performed1. The exemption reasons ar e assigned to the WHT Code2. Assigni

ng WHT type to compan y code (E.g. BH)3. A ctivating Extended W HT CodeState Code MappingTable Name J_1ISTATECD
SAP DEVELOPER NETWORK | sdn.sap.com

BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com © 2008 SAP AG 14

Withholding Tax Configuration – Country India Version

Maintain the below entries in the table.

Country State Code Description IN 01 ANDAMAN AND NICOBAR ISL ANDSIN 02 ANDH RA PRADESHIN 03 ARUNACHAL PRA DESHIN 04 ASSAM IN 05 BIHARIN 06 CHANDIGARHIN 0

7 DADRA & NAGA R HAVELIIN 08 DA MAN & DIUIN 09 D ELHIIN 10 GOAIN 11 GUJARATIN 12 HARYANAIN 13 HI MACHAL PRADES HIN 14 JAMMU & KASHMIRIN 15 KA RNATAKAIN 16 K

ERALAIN 17 LAKS HAWADEEPIN 18 MADHYA PRADES HIN 19 MAHARAS HTRAIN 20 MANIP URIN 21 MEGHAL AYAIN 22 MIZORA MIN 23 NAGALAN DIN 24 ORISSAIN 2 5 PONDICHERRYI

N 26 PUNJABIN 27 RAJASTHANIN 28 SIKKIMIN 29 TAMI LNADUIN 30 TRIP URAIN 31 UTTAR PRADESHIN 32 WE ST BENGALIN 33 C HHATISHGARHIN 34 UTTARANCHA L

SAP DEVELOPER NETWORK | sdn.sap.com BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com © 2008 SAP AG 15

SAP Extended Wit Holding Tax Config
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