TDS Process , Issue Certificate & Quarterly return

[raheem_baksh]

Applies to:

Any business organization having TDS Implemented. This is applicable from ECC 6.0. For more

information, visit the Enterprise Resource Planning homepage.

Summary

This article displays the process of  TDS Update Bank Challan, Issue  Certificate and Quarterly return.

1.Hand Book Objective

The following document is to show the Process sequences that was development for the FI EWT) sub-module.This document contains the standard Process of the SAP ECC 6.0.

2. TDS

 

Tax Deducted at Source is one of the modes of collecting Income-tax from the assesses in India. This is governed under Indian Income Tax Act, 1961, by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by Indian Revenue Service (IRS), Ministry of Finance, Govt. of India.

2.1 Vendor Invoice with TDS

Module:	FI –  Financial Accounting
Area:	Extended Withholding Tax
Description:	Create Vendor Invoice
Navigate:	Accounting --> Financial Accounting --> Accounts Payable Document Entry FB60 – Invoice
Direct access:	FB60
Configured by:
Date:	18/10/2012

Prerequisite: Check vendor master should have maintained VAT Reg.No and Assigned EWT Type and code

 

Create Vendor invoice through FI Side, In case invoice comes from MIRO (MM side)use T.code J1INPP to update Business place

2.2  Creation & payment of TDS to Gov

When you have remitted the deducted TDS to the government, you are sent a challan confirming that payment has been received. The system allows you to record the number of the challan in the invoices from which the TDS had been deducted and paid.

Module:	FI –  Financial Accounting
Area:	Extended Withholding Tax
Description:	- Create Remittance Challan
Navigate:	Accounting --> Financial Accounting --> Accounts Payable Withholding Tax -->India --> Extended Withholding Tax --> Remittance of Withholding Tax --> J1INCHLN - Create Remittance Challan
Direct access:	J1INCHLN
Configured by:
Date:	18/10/2012

Execute





SAVE





 

In Above screen total basic TDS Remitted not updated

when you are creating “J1INCHLN – Create Remittance Challan“, “total basic TDS remitted” is not updated.

You need to update 0 % for all the WH Tax type and Code combination, in below two table (even though ECS and surcharge is not applicable).

SM30 – J_1IEWT_ECESS1
SM30 – J_1IEWT_SURC1

 

 

 

2.3  Enter Bank Challan

Module:	FI –  Financial Accounting
Area:	Extended Withholding Tax
Description:	Enter Bank Challan
Navigate:	Accounting  --> Financial Accounting --> Accounts Payable --> Withholding Tax --> India --> Extended Withholding Tax-->Remittance of Withholding Tax -->J1INBANK - Enter Bank Challan
Direct access:	J1INBANK
Configured by:
Date:	18/10/2012

2.4 Issue Certificates

Prerequisites

You have already remitted the TDS to the government and recorded the challan number in the transactions concerned (see Update of Challans). Only transactions with a challan number can be included in certificates.

The certificate printing program uses SAPscript form J_1ITDSCERT. If there are some changes in the certificate format this layout set can be changed accordingly.

If the certificates are to be divided by business area, with a unique number range per business area, you must have maintained the sections as a combination of section and business area, so for business area 0001 and section 194C, you could maintain the section as 194C0001, for example.

Module:	FI –  Financial Accounting
Area:	Extended Withholding Tax
Description:	Certificates
Navigate:	Accounting  --> Financial Accounting --> Accounts Payable --> Withholding Tax -->India -->Extended Withholding Tax -->Certificates-->J1INCERT - Print
Direct access:	J1INCER
Configured by:
Date:	18/10/2012

Execute



Execute

2.5 Quarterly TDS Returns

You use the Quarterly TDS Returns report to generate electronic TDS returns for payments other than salaries. You use the same report to generate the returns for residents and non-residents by choosing either Form 26Q or Form 27Q respectively. You prepare the returns on a quarterly basis.

Module:	FI –  Financial Accounting
Area:	Extended Withholding Tax
Description:	Quarterly TDS Returns
Navigate:	Accounting  -->  Financial Accounting --> Accounts Payable --> Withholding Tax --> India-->Extended Withholding Tax-->Reporting-->J1INQEFILE - Quarterly TDS Returns
Direct access:	J1INQEFILE
Configured by:
Date:	18/10/2012