Extended Withholding tax

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

Online Training Tutorials

  • Extended Withholding TaxExtended Withholding Tax Configuration and SettingsExtended Withholding Tax: SAP system provides two procedures for processing withholding tax; the “Standard” and the “Extended” withholding tax. We’ll walk you through on the basic […]
  • Role of Functional consultantRole of Functional consultant in CINRole of Functional consultant: Installation, customization and configuration related to CIN needs to be carried out for the following applications (components) in SAP R/3. This should be a […]
  • fiscal year variantHow to do Fiscal Year Variant Change in SAP?Fiscal Year Variant  The fiscal year variant determines the posting periods to be used by the client's company. SAP allows a maximum of 16 posting periods each fiscal year - normally 12 […]
  • ISO Codes in SAPWhat is Country ISO Codes in SAP?In an SAP System, ISO codes are currently supported for language, country, currency, and unit of measure fields. If you use one or more of these fields in your BAPI you have to make two […]
  • c++ interview questionsC++ Interview Questions and AnswersWe have listed of C++ Interview Questions and Answers that have been designed for C++ professionals who are preparing interviews on C++ Programming. C++ is not a purely object-oriented […]
  • SAP HANA Interview QuestionsSAP HANA Interview Questions and AnswersSAP HANA is an in-memory database: It is a combination of hardware and software made to process massive real time data using In-Memory computing. It combines row-based, column based […]
  • C Program to Find Total of Even IntegersC Program to Find Largest of Three numbersIn this post explain C program to find largest of three numbers. Ready to execute code with clean output, in easy way with simple program with steps. Here to ask user to enter the input […]
  • SAP Item Category DeterminationSAP Item Category Determination an OverviewThe item category determination in the sales document depends on the sales document type and the material. An item category group is defined in the material master record. For Example, in […]