You are on page 1of 24

SlideShareExploreSearch

You

ShakeelHussain
MyClipboards
Logout

Upload

Back

ShakeelHussain
MyClipboards
MyUploads
Analytics
LeadDashboard
AccountSettings
Support
Logout
Search

Home
Technology
Education
MoreTopics
MyClipboards
ForUploaders
CollectLeads
Search

Connecttomoreopportunity!Weveconnectedyourskl.hussain@gmail.comaccountwithLinkedIn.LearnmoreorchooseadifferentSlideShareaccount.

UpcomingSlideShare
Loadingin...5

6of14

SAPFinancialsExtendedWithHoldingTax
4,195
Share
Like

PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner,Lookingfor1stSAPFIIMPProjectPERMTatBLR.
Jr.SAPFICertifiedPractitionerBEMLSolutionsLimited

FollowFollowing
13 4 0 0
PublishedonMar12,2013

ThisDocumentrelatestoSAPFinancialsExtendedWithHoldingTaxforQuickstudy.CopyRights
...

Publishedin:Technology
0Comments
9Likes
Statistics

Notes

FullName
Commentgoeshere.
12hoursagoDeleteReplySpamBlock
AreyousureyouwanttoYesNo
Yourmessagegoeshere

Shareyourthoughts...
Post

Bethefirsttocomment

VineetLodha,atatGeneralMills
7monthsago

MahendraReddy,SAPFICertifiedAssociate,Professional1atCSCatCSC
7monthsago

HamidMakhlouf,SAPFI/COConsultantatIDCTechnologies,Inc
8monthsago

sujaysubhagade,atatIGATE
11monthsago

PranavTeja
1yearago
ShowMore
NoDownloads
Views
TotalViews
4,195
OnSlideshare
0
FromEmbeds
0
NumberofEmbeds
0
Actions
Shares
17
Downloads
0
Comments
0
Likes
9
Embeds0
Noembeds
Nonotesforslide

SAPFinancialsExtendedWithHoldingTax
1. 1.SAPFinancialsExtendedWithHoldingTaxExtendedWithHoldingTaxinDetailPreparedBy:Ms.PramilaNagarajFirstClassMBAFinance
Graduate(200910)GlobalAcademyofTechnology,Bangalore(VTUBelgaum)TrainedupinSAPFICO@SAPPHIREConsultingServicesand@
SAPTACBangalore(FRESHER)CopyRights20122013SAPTACBANGALORE
2. 2.SAPFINANCIALSEXTENDEDWITHHOLDINGTAXBasicSettingsExtendedWithholdingTaxTask1CheckWithholdingTaxCountriesIMG
FinancialAccountingFinancialAccountingGlobalSettingsWithholdingTaxExtendedWithholdingTaxBasicSettingsCheck
WithholdingTaxCountriesThewithholdingtaxcountryisneededforprintingthewithholdingtaxform.SincethelistofcountryIDsprescribedbylaw
isdifferentfromthelistinthesystem,youhavetodefinethewithholdingtaxcountriesagain.Task2DefineOfficialWithholdingTaxCodesIMG

FinancialaccountingFinancialAccountingGlobalSettingsWithholdingTaxExtendedWithholdingTaxBasicSettingsDefineOfficial
WithholdingTaxCodesIfyournationaltaxauthoritiesusewithholdingtaxkeystoidentifythedifferentwithholdingtaxtypes,youcandefinethese
officialnamesforyourtaxcodeshere.192TDSonSalaries194CTDSonContractors193TDSonInterestonSecurities194ITDSon
Rent194JTDSonProfessionalServicesTask3DefineReasonsforExemptionIMGFinancialaccountingFinancialAccountingGlobalSettings
WithholdingTaxExtendedWithholdingTaxBasicSettingsDefineReasonsforExemptionHerewedefinereasonsforexemptionfrom
withholdingtax.ThisindicatorcanbeenteredinthevendormasterrecordorinthecompanycodeWithholdingTaxmasterrecordinformation.Task4
CheckRecipientTypesIMGFinancialaccountingFinancialAccountingGlobalSettingsWithholdingTaxExtendedWithholdingTaxBasic
SettingsCheckRecipientTypesThetypeofrecipientcategorizesthevendor,whichisnecessaryforprintingthewithholdingtaxform.Task5Define
BusinessPlacesIMGFinancialaccountingFinancialAccountingGlobalSettingsWithholdingTaxExtendedWithholdingTaxBasicSettings
IndiaDefineBusinessPlacesCreateabusinessplaceforeachtaxdeductionaccountnumber(TAN)thatyourcompanyhas.Intheaddress
data(whichisprintedonthevendorwithholdingtaxcertificates)maintainthetaxofficesaddressCopyRights20122013SAPTACBangalore
3. 3.SAPFINANCIALSTDSOverviewandProcessOverviewofTDSTaxdeductedatsource(TDS)isataxthatisdeductedfromincomethatacompany
inIndiapaystoarecipientorsupplieriftheincomeamountexceedsaspecificstatutorylimitinafinancialyear.Thetypesofincomethataresubjectto
TDSinclude: Salary. Interestanddividends. Winningsfromthelottery. Insurancecommission. Rent. Feesfromprofessionaland
technicalservices. Paymentstocontractorsandsubcontractors.ThewithholdingamountsforTDScanbedeductedfromaninvoicesubmittedbya
supplierorfromthepaymentthatisissuedtotherecipientorsupplier.Examplesofrecipientsandsuppliersincludecontractors,providersofprofessional
services,employees,andrealestatelandlords.CompaniessubmitaTDScertificatetoeachsupplieronamonthlyoryearlybasis.Thecertificate
includesthepayments,aswellasinformationaboutthecompanyandsupplier.Companiesmustalsosubmitanannualreturntothegovernmentforeach
recipientorsupplierforthefinancialyear.TDScertificatecanbeeitherForm16(R75I10A)orForm26QP2PIND(R75I122EQ).Form16istheTDS
certificatewhichanindividualsubmitsandForm26QistheTDScertificatewhichacompanysubmitstothetaxauthorities.TDSmustalsobededucted
frompaymentsissuedtothirdpartiesbybothcorporateandnoncorporateentities.Theentitymustdeposittheamountowedforwithholdingatanyof
thedesignatedbranchesofbanksthatareauthorizedtocollecttaxesonbehalfofthegovernmentofIndia.TheentitymustalsosubmittheTDSreturns,
whichcontaindetailsaboutthepaymentsandthechallanforthetaxdepositedtotheIncomeTaxDepartment(ITD).ForelectronicTDS,companies
mustgeneratetheForm26Qforeachfinancialquarter.ThisisastatutoryrequirementfortheITD.ProcessofTDS:ContinuedinnextpageCopy
Rights20122013SAPTACBangalore
4. 4.SAPFINANCIALSCopyRights20122013SAPTACBangalore
5. 5.SAPFINANCIALSOrCopyRights20122013SAPTACBangalore
6. 6.SAPFINANCIALSTDS/WithholdingTaxRates:CopyRights20122013SAPTACBangalore
7. 7.SAPFINANCIALSWithholdingTaxRatesRefertoWithHoldingTaxRatesDocumentWithholdingTaxConfigurationTheWithholdingTax
configurationenablesthesystemtocalculateandreportTDSinIndia.Thestandardfunctionalityismainlyusedinwithholdingoftaxfromvendor
invoicesanddepositingthesamewiththetaxauthorities.ThebasicwithholdingtaxsettingsforIndia(CountryIndiaVersion)willincludethefollowing
subprocesseswhicharecommonlyusedwithinthemainprocess. Definingwithholdingtaxkeys Definingbranchoffices(Sectioncodes)
Definingwithholdingtaxtypeinvoice&paymentposting DefiningwithholdingtaxtypeforECESSatInvoiceposting Maintainingsurcharges
Definingwithholdingtaxcodes DefiningGLaccountstopostthewithholdingtax MaintenanceofnumberrangesfortaxcertificatesandChallan
CopyRights20122013SAPTACBangalore
8. 8.SAPFINANCIALSConfigureExtendedWithholdingTaxSAPsystemprovidestwoproceduresforprocessingwithholdingtaxtheStandardand
theExtendedwithholdingtax.Wellwalkyouthroughonthebasicconfigurationstepsofthelatterprocedure.1.First,CheckWithholdingTax
Countries:Path:IMGFinancialAccounting(New)FinancialAccountingGlobalSettings(New)WithholdingTaxExtendedWithholding
TaxBasicSettingsCheckWithholdingTaxCountries.TheChangeViewCountryKeyforWithholdingTax:Overviewscreenappears.To
createnewentry,youmaycopyanexistingcountrykeybyselectingtheCopybuttonoryoumaycreatefromscratchbyselectingNewEntries
button.Fillupthefollowingfields: CountryKey(Cty)e.g.PH WithholdingCountryKey(WCty)e.g.PH Descriptione.g.Withholding
TaxPhilippines2.Second,DefineWithholdingTaxKeys.Thesearecodesusetoidentifythedifferentwithholdingtaxtypesofeachcountry.Path:
IMGFinancialAccounting(New)FinancialAccountingGlobalSettings(New)WithholdingTaxExtendedWithholdingTaxBasic
SettingsDefineWithholdingTaxKeys.ApopupwindowDetermineWorkArea:Entryappears.Enteryourcountrycode,e.g.PH.Thenselect
EnterbuttonorpressEnteronyourkeyboard.TheChangeViewOfficialWithholdingTaxKeyDescriptions:Overviewscreenappears.Tocreate
newentriesyoumaycopyanexistingtaxkeybyselectingCopybuttonoryoumaycreatefromscratchbyselectingNewEntriesbutton.Fillupthe
followingfields: OfficialWithholdingTaxKey(Off.Key)e.g.C010. Text40(Name)Professionaltalentfeepaidtojuridicalperson
<=720,000.3.Third,DefineWithholdingTaxType.NotethatwithExtendedWithholdingTaxProcedure,withholdingtaxcanbecomputedbythe
systemduringinvoiceprocessingorduringpostingofpayments.Furthermore,thewithholdingtaxonpartialpaymentscanalsobecomputedor
determinedbythesystemautomatically.Path:IMGFinancialAccounting(New)FinancialAccountingGlobalSettings(New)Withholding
TaxExtendedWithholdingTaxCalculationWithholdingTaxTypeDefineWithholdingTaxforInvoicePosting(orforPaymentPosting).A
popupwindowDetermineWorkArea:Entryappears.Enteryourcountrycode,e.g.PH.ThenselectEnterbuttonorpressEnteronyour
keyboard.TheChangeViewDefineWithholdingtaxtype:Postingattimeofinvoicescreenappears.Onthesaidscreen,youmaycreatethroughcopy
anexistingtaxtypeoryoumaycreatefromscratch.SelecttheCopybuttonorNewEntriesbutton.FilluptheWithholdingTaxTypeandDescription
fields.Allotherfieldsarealreadystandardandmoreorlessfittoyourwithholdingtaxrequirementsinyourcountry.CopyRights20122013
SAPTACBangalore
9. 9.SAPFINANCIALS4.Fourth,DefineWithholdingTaxCode.Thetaxcodeyoucreateinthisstepshouldbeassignedtothewithholdingtaxtypeand
withholdingtaxkeycreatedfromtheprecedingsteps.Furthermore,youenteralsothetaxrateandthebaseamountofcomputation.Path:IMG
FinancialAccounting(New)FinancialAccountingGlobalSettings(New)WithholdingTaxExtendedWithholdingTaxCalculation
WithholdingTaxCodeDefineWithholdingTaxCodeApopupwindowDetermineWorkArea:Entryappears.Enteryourcountrycode,e.g.PH.
ThenselectEnterbuttonorpressEnteronyourkeyboard.TheChangeViewWithholdingtaxcode:Detailsscreenappears.Youmaycopyanexisting
taxcodeoryoumaycreatefromscratch.Fillupthefollowingfields: Withholdingtaxtypeassignawithholdingtaxtypeyouvecreatedinstep3.
Withholdingtaxcodecreateyourwithholdingtaxcode. DescriptionEnterdescriptionofyourwithholdingtaxcode. OfficialWithholdingtax
keyassignawithholdingtaxkeyyouvecreatedinstep2. Percentagesubjecttotax(Baseamount)normally,100%ofthebaseamountissubject
totax. Postingindicatornormallyselect1whichmeans,thereisonelineitementryforthewithholdingtaxandtheamountisdeductedfromtthe
lineitemofcustomer,vendor,orcashaccount. Withholdingtaxrateenterthetaxrateofthetaxcode.Thiswillusebythesystemtocomputethe
amountoftaxduringprocessing.5.Fifth,AssignWithholdingTaxTypestoCompanyCodes.Here,youassignthewithholdingtaxtypescreatedinstep
3toyourCompanyCode.Path:IMGFinancialAccounting(New)FinancialAccountingGlobalSettings(New)WithholdingTaxExtended
WithholdingTaxCompanyCodeAssignWithholdingtaxtypetoCompanyCode.TheChangeViewWithholdingtaxinformationforcompany
codeperw/taxtypescreenappears.Youmaycopyanexistingcompanycodeassignmentoryoumayassignfromscratch.6.Sixth,ActivateExtended
WithholdingTaxforyourCompanyCode.Remember,theactivationofthistaxprocedureisonthecompanycodelevel.Youcantusethistax
proceduretoyourcompanycode,unlessactivated.Path:IMGFinancialAccounting(New)FinancialAccountingGlobalSettings(New)
WithholdingTaxExtendedWithholdingTaxCompanyCodeActivateExtendedWithholdingTax.TheChangeViewEnhancedwithholding
taxfunctionsactive:Overviewscreenappears.Toactivate,tickthecheckboxExt.w/taxofyourcompanycode.7.Finally,DefineG/LAccountsfor
WithholdingTax.Inthisstep,youassigntheG/LaccountforWithholdingtaxposting.Path:IMGFinancialAccounting(New)Financial
AccountingGlobalSettings(New)WithholdingTaxExtendedWithholdingTaxPostingAccountsforWithholdingTaxDefineAccounts
forWithholdingTaxtobePaidOver.ApopupwindowEnterChartofAccountsappears.EntertheChartofAccountscodethenselectEnterbutton

orpressEnteronyourkeyboard.TheMaintainFIConfiguration:AutomaticPostingAccountsscreenappears.SelecttheG/Laccountyouwant
toassignforwithholdingtaxpostings.Note,foreverystepabovedontforgettosaveyourwork.SelectSavebuttonorCtrl+Saftereachstep.Copy
Rights20122013SAPTACBangalore
10. 10.SAPFINANCIALSExtendedWithholdingTaxEWT:TDSOverviewEWT:TDS(TaxDeductedatSource) Taxisdeductedatsourcefromall
payments/provisionswhicharehitbytheTDSprovisionsoftheAct Someoftheabovepayments/provisionspertaintoservicesthatcomewithinthe
scopeofTaxDeductedatSource(TDS)undertheIndianIncometaxAct,1961(Act). Taxisnotdeductedfrompaymentforgoods TDSis
requiredtobedeductedatthetimeofpaymentorinvoicepostingwhicheverisearlier. Thetaxeswhicharesodeducted,willthenhavetobe
depositedtothecreditoftheIndianGovernmentonorbefore7thofnexteverymonth. ThecompanywillhavetoissueTDScertificatestothe
vendorsforthetaxdeductedandalsofilewiththetaxoffice,Quarterly&AnnualReturnofthetotaltaxesdeductedduringtheyearunderthevarious
sectionsoftheAct.CopyRights20122013SAPTACBangalore
11. 11.SAPFINANCIALSEWT:VendorTDS:EWT:VendorTransactions:CopyRights20122013SAPTACBangalore
12. 12.SAPFINANCIALSEWT:CustomerInterestTDS:EWT:ProvisionsandAdjustments: TDScomputedonentriesinprovisionalliabilityaccounts
(GR/IRandSR/IRAccounts) TDSiscomputedateachperiodendonunclearedentriesremainingintheGR/IRandSR/IRaccounts GR/IRand
SR/IRaccountsrelevantforcomputingTDSonprovisionsidentifiedseparately GLaccountstowhichtheprovisionalTDSispostedidentifiedand
documentTypeusedforprovisionalTDSpostingsisseparatelyidentified JVfacilityavailableforcarryingoutchangestoTDSrelevantpostings
Accountstowhichlosses(nonrecoverableTDS)istobepostedandthedocumenttypetobeusedforTDSadjustmentpostingsisidentifiedseparately.
CopyRights20122013SAPTACBangalore
13. 13.SAPFINANCIALSEWTActivities:TDS:DueDateformonthlyTDSreturn:7THofeverymonthTDSonSalaries192BTDSonContractors
194CTDSONRent194ITDSonProfessionalFees194JTDSQuerterlyReturns:1stQAprtoJuneDuedate15thofJuly2ndQJulytoSeptDue
Date15ThofOct3rdQOcttoDecDueDate15thofJan4thQJantoMarDueDate15ThJuneQuartlyReturns:24Qforsalaries27Qforotherthan
salariesContracts(includingworklandlabourcontract)194cThetaxhastobededucted@2%oncontractpaymentsand1%forsubcontractand
advertisementcontractpayments.ThetaxisrequiredtobedeductedifasinglepaymentexceedsRs.20000/oriftheaggregatepaymentsexceedRs.
50000/perannum.Rent194iAnyamountpaidasrentaboveRs.120000/peryearwillattractTDSprovisions@10%forIndividual&HUFand20%
forothers.Feesforprofessionalortechnicalservices/royalty/Incomeonunitsofmutualfunds:194jThetaxhastobededucted@10%withsomebasic
exemptionlimits.Interestonsecurities/Dividends/Interest/Insurancecommission:193,194,194A&194DThetaxhastobededucted@20%for
domesticcompaniesand10%forotherswithsomebasicexemptionlimits,inthecaseofinterestiftheamountofinterestisuptoRs.5000/duringa
financialyear.however,inthecaseofinterestpaidbyaCopyRights20122013SAPTACBangalore
14. 14.SAPFINANCIALSbankingcompany,Cooperativesocietyengagedinthebusinessofbankingandapubliccompanyengagedinthefinancingor
constructionofresidentialhousesinIndia,thislimitisRs.10000/.Insurancecommission:Anypersonresponsibleforpayingtoaresidentany
remunerationorrewardwhetherbywayofcommissionorotherwise,forprocuringinsurancebusinessisrequiredtodeducttax@20%for
companiesand10%forotherpersoniftheamountcreditedorpaidismorethanRs.5000/inafinancialyear.CopyRights20122013SAPTAC
Bangalore
Recommended
Morefromthisauthor

IncomeTaxFundamentals

Withholdingtaxconfiguration
ricardopabloasensio
10,821

SAPFIWITHHOLDINGTAXLIVEIMPLEMENTATION
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
1,529

ServicetaxesindiaandSAPConfiguration(TAXINN)
IrfanShokat
21,481

SAPFIASSETACCOUNTINGLIVEIMPLEMENTATION
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
2,632

SAPFIAccountingEntries
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
16,712

SAPFinancialAccountingTaxes
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
31,823

SAPFIandCOIssuesandSolutions
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
42,371

CINIndiaCountryVersionforTaxes
MABarve
51,784

SAPCINCOUNTRYVERSIONINDIA
BalajiParsewar
10,429

SAPFinancialsRealTimeIssuesandTips
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
27,949

SAPBUSINESSBLUEPRINTPRACTICEPROJECT
VinitDheer
58,121

Importanttablesforsapsd
PoojaDeshmaneWagaskar
22,471

SAPCOConfigurationGuideExclusiveDocument
Y.Z.MERCAN
19,892

SmallBusinessesCanPreparetheW21099TaxSeasonwithAmazingSavingsonR...
CaseyYang
183

SimpleandPowerful1099AndW2TaxFormPrintingSoftwareIsBackedbyTopn...
CaseyYang
161

SAPFINANCIALSLIVEREALTIMEPROJECTPRACTICE
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
16

IntroductiontoEnterpriseArchitecture_Certificate_November_2015.pdf
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
45

PrinciplesofProjectManagementCertificateNovember_2015
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
23

LeadershipinDigitalTransformation2015RoA
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
61

CertificateFinancialAnalysisandDecisionMaking
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
58

InnovationandITManagementCertificate2015IIMBMOOC
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
121

SAPHANADeltaSP9RecordofAchievement
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
97

SAPACADEMICACCOLADES2013PRESENT
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
94

C4C1RecordofAchievement

PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
82

SAPEnterpriseArchitectureintheEraofSAPHANA,Infrastructure,Platforms...
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
224

SAP_EAF_Overview_Guidev1.2
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
96

EnterpriseArchitects_SAP_Toolset_a_Practical_GuideASUGEvents2011
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
100

Enterprise_Architecture_Techniques_for_SAPCustomerAMRResearchReport
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
87

EWA.1.1xEnglishatWorkinAsia:JobApplications@EdxHongKong2015
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
91

Asap8agilewebinarslidedeckASAP8AgileDeepDive
PramilaRajJr.SAPFICertifiedAssociateSolutionPractitioner
115

Yourphonenumber

+91

English
Espanol
Portugues
Franais
Deutsche
About
Dev&API
Blog
Terms
Privacy
Copyright
Support

LinkedInCorporation2015

ShareClipboard

Email

Enteremailaddresses
Addamessage

From
Send

Emailsentsuccessfully..
Facebook
Twitter
LinkedIn
Google+
Link
Publicclipboardsfeaturingthisslide

Nopublicclipboardsfoundforthisslide

SavethemostimportantslideswithClipping
Clippingisahandywaytocollectandorganizethemostimportantslidesfromapresentation.You
cankeepyourgreatfindsinclipboardsorganizedaroundtopics.

Startclipping
Nothanks.Continuetodownload.

Savethisdocument