Professional Tax – Maharashtra & Form16-Summary of Payslip

Professional Tax – Maharashtra

& Form16-Summary of Payslip

Component Version: SAP ECC 6.0   Release: 604   Level: 0046       Highest Support Pack level: SAPKE60460

Dear Gurus,

This document comprises the steps for configuring the Professional Tax for Maharashtra. Unlike the other states Maharashtra professional tax will be calculated in a specific manner.

The PTax Slab rates for pertaining Maharashtra are as follows.

Slab Code	SRNo	Slab Range	PTax Amount	Currency
MH03	1	5,000.00	0	INR
MH03	2	5001-10000	175	INR
MH03	3	10001-999999	200	INR
MH04	1	5,000.00	0	INR
MH04	2	5001-10000	175	INR
MH04	3	10001-999999	300.00	INR

In the context of the years 2012-2013 & 2013-2014, the Maharashtra PTax calculation for employees with Income above Rs.10, 001/- will be as follows.

Instead of calculating 2500/12=208.333 it should be calculated as follows

200*11=2200(April-2012 to Jan2013 and March2013) (For Eleven months 200)

300*1=300(February2013) (Eleventh Month of 2012-2013)

Total: 2500 (12 Months)

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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 Maharashtra in the Zone No. field.

4. Enter the zone number valid for the state of Maharashtra 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 the 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
6	31-12-9999	Mumbai Region	13	24476	RGCRT0709	Mumbai Mahanagar Nigham	40527	1.01.01.1800	1234	01.01.1800

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. 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	Pers. subarea text	PS grouping for Ptax
1234	2345	Maharashtra	Mumbai	06

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	SRNo	Slab Range	PTax Amount	Currency
MH03	1	5,000.00	0	INR
MH03	2	5001-10000	175	INR
MH03	3	10001-999999	200	INR
MH04	1	5,000.00	0	INR
MH04	2	5001-10000	175	INR
MH04	3	10001-999999	300.00	INR

Step4: SPRO->IMG->Payroll->Payroll India->Professional Tax-> Maintain Method and Form Layout 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 layout of the form to be submitted.

Select the state in the Region field.

Region	Slab Code	Method	Form Layout	Basis Type	+	Start Date	End Date
13	MH03	40PTXCMH	40PTXFMH	D Due Basis	G Gross Carry Forward	01.01.2012	31.01.2012
13	MH04	40PTXCMH	40PTXFMH	D Due Basis	G Gross Carry Forward	01.02.2012	29.02.2012
13	MH03	40PTXCMH	40PTXFMH	D Due Basis	G Gross Carry Forward	01.03.2012	31.01.2013
13	MH04	40PTXCMH	40PTXFMH	D Due Basis	G Gross Carry Forward	01.02.2013	28.02.2013
13	MH03	40PTXCMH	40PTXFMH	D Due Basis	G Gross Carry Forward	01.03.2013	31.01.2014
13	MH04	40PTXCMH	40PTXFMH	D Due Basis	G Gross Carry Forward	01.02.2014	28.02.2014
13	MH03	40PTXCMH	40PTXFMH	D Due Basis	G Gross Carry Forward	01.03.2014	31.01.2015
13	MH04	40PTXCMH	40PTXFMH	D Due Basis	G Gross Carry Forward	01.02.2015	28.02.2015

1 Enter the professional tax slab code name in the Slab code field.

2. Enter the method or function name for PTax calculations in the Method field.

3. Enter the time dependent key entry in T596F table to indicate the layout in the Form layout field.

4. Enter the start and end dates for the period.

5. Save the entries.Maintaining the Master DataIt is required to maintain the infotype 0588 Other Statutory Deductions (Subtype 0003).

Step6: Process the PayrollUnder the Deduction side, we could see the PTax deducted for that employee as 200 for the months of April-12, May-12……till January-13.For the month of February-2013 the PTax is calculated as 300.

January-2013

February: 2013

Form16-Summary of Payslip

Form16 –Summary –February2013

/wp-content/uploads/2013/05/february_2013_214558.jpgFor the March-2013 month the PTax will be calculated as follows.

/wp-content/uploads/2013/05/march2013_214560.jpgForm16 –Summary –March 2013 In the month of February 2013 the PTax will calculated as 300.However in the Form16 Summary of the Payslip the aggregate amount of Professional Tax for the entire year will be reflected as 2600 instead of 2500. In the month of March 2013 the PTax will calculated as 200.In the Form16 Summary of the Payslip the aggregate amount of Professional Tax for the entire year will be reflected back as as 2500 instead which is correct..

Related Notes: The related SAP Notes for Maharashtra PTax

1727550

HINCPTX0:Slab range not visible on PTax form for Maharasthra

Bibliography: Related Links:

1. http://taxguru.in/goods-and-service-tax/new-profession-tax-rates-after-mahrashtra-government-budget.html
2. http://wirc-icai.org/wirc_referencer/indirect%20tax/Profession%20Tax%20Act.htm   

Sincerely

Govardhan Reddy

SAP HCM Consultant

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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.