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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)

_________________________________________________________________________

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. 1. Enter an alphanumeric value for the group name in the PtGrp field.
  2. 2. Select a state in the Region field.
  3. 3. Enter the zone number valid for the state of Tamilnadu in the Zone No. field.
  4. 4. Enter the zone number valid for the state of Tamilnadu in the Div. No. field.
  5. 5. Enter the registration certificate number in the Regn. Cert field.
  6. 6. Enter the professional tax office circle name in the Circ. Name field.
  7. 7. Enter the professional tax office circle number in the Off.CircNo field.
  8. 8. Enter the address of the tax office circle by clicking on the address button on the toolbar.
  9. 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

  1. 01.01.1800

V_T7INP1.jpg

Step2: SPRO->IMG->Payroll->Payroll India->Professional Tax->Assign PTax Groupings for Personnel Areas and Subareas

Table: V_7IN0P_PTX

V_7IN0P_PTX.jpg

In this step, we assign professional tax groupings created in the previous step to personnel areas and subareas.

Activities

  1. 1. Enter a personnel area in the Pers.area field.
  2. 2. Enter a personnel subarea in the P.subarea field.
  3. 3. Enter a personnel area and subarea grouping for Professional tax that is to be associated in the PS grp.Ptax field.
  4. 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

  1. Pers. subarea 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.

To assign rates to slab codes for a state MP, we must first define the slab code and then assign serial numbers, maximum limits and the rates.

Example

Slab code

Slab serial number

Range end(Higher)

Prof tax amount

Currency

MP05

1

  1. 150000.99
  2. 0.00

INR

MP05

2

  1. 180000.99
  2. 1500.00

INR

MP05

3

  1. 9999999.99
  2. 2500.00

INR

V_T7INP4.jpg

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.

  1. 2. Enter the professional tax slab code name in the Slab code field.
  2. 3. Enter the method or function name for PTax calculations in the Method field.
  3. 4. Enter the time dependent key entry in T596F table to indicate the lawet in the Form lawet field.
  4. 5. Enter the start and end dates for the period.
  5. 6. Save the entries.

V_T7INP3.jpg

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.

40PTX.jpg

Maintaining the Master Data

It is required to maintain the infotype 0588 Other Statutory Deductions (Subtype 0003)./wp-content/uploads/2012/12/0588_164788.jpg


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)

March2013.jpg

For the Twelfth month the Ptax will be calculated as follows.

March.jpg


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

______________________________________________________________________________________________________________________________________

Disclaimer: This document does not contain the copyrighted content or material own by others. The coding or technical names used in the configuration screen shots are purely set as just examples and doesn’t belongs to the real time systems or material own by others. Any resemblance with the real time system or material own by others is s just a coincidence. The numbering, wording, coding are provided in screen shots are to give better understandings to the forum users. I am fully abide by the rules and regulations of the forum. The prime motive is to serve the forum users better.

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