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