The Dynamics of Madhya Pradesh PTax
Component Version: SAP ECC 6.0 Release: 604 Level: 0050 Highest Support Pack level: SAPKE60450
Dear Gurus,
This document comprises the steps for configuring the Madhya Pradesh PTax.The dynamics of Madhya Pradesh PTax will be as follows. Unlike the other states Madhya Pradesh professional tax will be calculated in a specific manner.
During the recent years the PTax Slab rates for pertaining Madhya Pradesh are as follows.
Slab Code | SRNo | Slab Range | PTax Amount | Currency |
MP01 | 1 | 10,000.00 |
| INR |
MP01 | 2 | 12,500.00 | 87 | INR |
MP01 | 3 | 15,000.00 | 125 | INR |
MP01 | 4 | 9,999,999.99 | 212 | INR |
MP02 | 1 | 300,000.00 |
| INR |
MP02 | 2 | 500,000.00 | 1,000.00 | INR |
MP02 | 3 | 800,000.00 | 2,000.00 | INR |
MP02 | 4 | 9,999,999.00 | 2,500.00 | INR |
MP03 | 1 | 120,000.00 |
| INR |
MP03 | 2 | 150,000.00 | 996 | INR |
MP03 | 3 | 180,000.00 | 1,500.00 | INR |
MP03 | 4 | 9,999,999.00 | 2,496.00 | INR |
MP04 | 1 | 120,000.00 |
| INR |
MP04 | 2 | 150,000.00 | 1,000.00 | INR |
MP04 | 3 | 180,000.00 | 1,500.00 | INR |
MP04 | 4 | 9,999,999.00 | 2,500.00 | INR |
In the context of the year 2012-2013 the Madhya Pradesh calculation will be as follows. Instead of calculating 2500/12=208.333 it should be calculated as follows
208*11=2288(April-2012 to Feb2013)(For Eleven months 208)
212*1=212(March2013)(For twelfth month 212)
Total: 2500 (12Months)
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To make this calculation so, it is required to configure the below steps
Step1: SPRO->IMG->Payroll->Payroll India->Professional Tax->Define Professional Tax Grouping Details
Table: V_T7INP1
In this step, we define the personnel area and subarea groupings for Professional Tax (PTax) which are used to group all personnel areas and subareas that contribute to the same professional tax circle. In the below mentioned table enter the PTax Grouping no mention the End Date as 31.12.999 Start Date as 01.04.2012(Any Other effective Date).
- 1. Enter an alphanumeric value for the group name in the PtGrp field.
- 2. Select a state in the Region field.
- 3. Enter the zone number valid for the state of Tamilnadu in the Zone No. field.
- 4. Enter the zone number valid for the state of Tamilnadu in the Div. No. field.
- 5. Enter the registration certificate number in the Regn. Cert field.
- 6. Enter the professional tax office circle name in the Circ. Name field.
- 7. Enter the professional tax office circle number in the Off.CircNo field.
- 8. Enter the address of the tax office circle by clicking on the address button on the toolbar.
- 9. Save wer entries.
PS grouping for Ptax | End Date | Ptax grp desn | Region | Zone number | Division number | Address number | Regn Certificate no | Office circle name | Ptax circle no | Start Date |
29 | 31-12-9999 | Indore l Region | 12 |
|
| 24476 | RGCRT0709 | BHOPAL NAGAR NIGAAM | 40527 |
|
Step2: SPRO->IMG->Payroll->Payroll India->Professional Tax->Assign PTax Groupings for Personnel Areas and Subareas
Table: V_7IN0P_PTX
In this step, we assign professional tax groupings created in the previous step to personnel areas and subareas.
Activities
- 1. Enter a personnel area in the Pers.area field.
- 2. Enter a personnel subarea in the P.subarea field.
- 3. Enter a personnel area and subarea grouping for Professional tax that is to be associated in the PS grp.Ptax field.
- 4. Save wer entries.
In this step PS Grouping for Ptax -29 which is defined the previous has to be assigned to the respective personal area.
Personnel area | Personnel subarea | Personnel Area Text |
| PS grouping for Ptax |
1234 | 2345 | Madhya Pradesh | Indore | 29 |
Step3: SPRO->IMG->Payroll->Payroll India->Professional Tax->Assign Amounts for Professional Tax Deduction
Table: V_T7INP4
In this activity, we assign a Professional Tax (PTax) rate to a slab code. Slabs are salary brackets as specified for a State by the respective State Government or local authority.
Example
Slab code | Slab serial number | Range end(Higher) | Prof tax amount | Currency |
MP05 | 1 |
| INR | |
MP05 | 2 |
| INR | |
MP05 | 3 |
| INR |
Step4: SPRO->IMG->Payroll->Payroll India->Professional Tax-> Maintain Method and Form Lawet for PTax Groupings
Table: V_T7INP3
In this activity, we assign the calculation method used for a slab code in a region and specify the lawet of the form to be submitted.
Select the state in the Region field.
- 2. Enter the professional tax slab code name in the Slab code field.
- 3. Enter the method or function name for PTax calculations in the Method field.
- 4. Enter the time dependent key entry in T596F table to indicate the lawet in the Form lawet field.
- 5. Enter the start and end dates for the period.
- 6. Save the entries.
Region | End Date | Start Date | Slab code | Method to be called | Form lawet called | Basis type |
|
12 | 12/31/9999 | 1/1/1999 | MP05 | 40PTXCMP | 40PTXFMP | N | G |
Step5: SPRO->IMG->Payroll->Payroll India->Professional Tax->Professional Tax Basis for the State of MP
Feature: 40PTX
In this Step, we configure the applicability of Backward projection of professional tax basis for the state of Madhya Pradesh, in the event of an employee joining a location in Madhya Pradesh, in the middle of the year.
If the return value is set to '01' the basis for professional tax is computed as if the employee has been working in the state for the entire year or projected backward to include the entire fiscal year. The feature, by default is set to return a value '01'.
In order for the professional tax basis to be valid only for the duration during which the employee was in the state of Madhya Pradesh, we must enable the 40PTX feature to return a value of 02.
Activities
Modify the 40PTX feature to return a value of '02' and save wer entries.
Maintaining the Master Data
It is required to maintain the infotype 0588 Other Statutory Deductions (Subtype 0003).
Step6: Process the Payroll
Under the Deduction side, we could see the PTax deducted for that employee as 208 for the months of April-12,May-12......till February-13.
For the month of March-2013 the PTax is calculated as 2500 i.e
208*11=2288(April-2012 to Feb2013)
212*1=212(March2013)
Total:2500 (12Months)
For the Twelfth month the Ptax will be calculated as follows.
Related Notes: The related SAP Notes for Madhya Pradesh PTax
SRNO | SAP Note | Description |
1 | 1702908 | HINCALC0: Ptax deductions not happening consistently for MP |
2 | 1598608 | ABAP runtime error COMPUTE_BCD_OVERFLOW in MP state Payroll |
3 | 1466504 | PTax not calculated for terminated employees in first period |
4 | 1474046 | Excess Ptax ded in MP state if emp leaving in a future month |
5 | 1438171 | HINCALC0:Incorrect PTax for mid month transfer for MP state |
6 | 1532701 | Madhya Pradesh ptax - inconsistent for leaving cases |
7 | 1548454 | HINCALC0:MP PTAX calculation inconsistent for terminated emp |
8 | 1720958 | Ptax : Additional Wage type for Professional Tax Basis |
9 | 1503687 | Madhya pradesh Profession tax calculated incorrectly |
10 | 1584625 | HINCLAC0: Ptax not getting calculated consistently for MP |
11 | 1750796 | Madhya Pradesh Ptax - Alternate options for proration |
Bibliography: Related Links: http://www.mptax.net/mpvatweb/
Source: https://www.filemyreturns.com/knowledgeportal/viewtopic.php?f=5&t=71
Sincerely
Govardhan Reddy
SAP HCM Consultant
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