TAN Exemption process in vendor master

Hi

1.   Hi

      I am sharing the TAN exemption Process in vendor master after implementing the SAP Note 1945137

      1. Maintain TAX exemption detail in Vendor changes                                              Tcode : FK02

Purpose :

Maintain amount based accumulation in CIN details TAN exemption tab for both Invoice time and payment time tax type tax code.

Trigger  : Update Tax Exemption detail in the vendor master

Prerequisite : Create a vendor first than add W/H tax type and tax code in the vendor master

1.    2. Maintain table for mapping the W/H tax Type and codes                                 TCode : SE16

Purpose

Map the Invoice time tax type tax code with Payment time tax type tax code in View ‘V_FIWTIN_TDS_MAP’.

Note:

·         Do not activate the standard accumulation functionality in your withholding tax type if you are using TAN based accumulation.

·         Multiple exemption certificates can be maintained for the same tax type but the Exemption from date should be different

1.   3. Invoice Booking                                                                                                         Tcode FB60

Purpose :

Invoice booking against the vendor 

Prerequisite :

Create a vendor code and update the withholding tax type and code in the withholding tax tab and save it and update the TAX exempted section ,

dates , rates and value in TAN Exemption Tab in CIN

Business Process :

SCENARIO: 1

Amount Less then Equal to one lac for rent @ 22% on base value include 52% on TAN Exemption for  Rs.100000 as W/H threshold Amount

·         For section code 1004 : : “ xxxxxxxxxxxxxxxI”

·         W/H Tax Type RI : Sec 194I Rent Invoice

·         W/H Tax Code R1 – Sec 194I Rent Invoice – CO  @ 22% for rent

·         TAX Exemption 52%  on W/H threshold Amount 100000/-

SCENARIO: 2

Amount  More than one lac for Profession fess  @ 22% on base value include 52% on TAN Exemption for  Rs.100000 as W/H threshold Amount

·         For section code 1000 : : “xxxxxxxxx”

·         W/H Tax Type P1 :  Sec 194J Fees Professional/Technical Inv

·         W/H Tax Code P1 – Sec 194J  Invoice – CO @ 22 %

·         TAX Exemption 52%  on W/H threshold Amount 200000/-

SCENARIO: 3

Amount Less then Equal to one lac for Profession fess  @ 5.5% on base value include 50% on TAN Exemption for  Rs.100000 as W/H threshold Amount

·         For section code 1000 : : “xxxxxxxxxxxI”

·         W/H Tax Type P1 :  Sec 194J Fees Professional/Technical Inv

·         W/H Tax Code P1 – Sec 194J  Invoice – CO @ 5.5 %

·         TAX Exemption 50%  on W/H threshold Amount 100000/-

SCENARIO: 4

Amount  More than one lac for Profession fess  @ 5.5% on base value include 50% on TAN Exemption for  Rs.100000 as W/H threshold Amount

·                     For section code 1000 : : “xxxxxxxxxxxxxx”

·                     W/H Tax Type P1 :  Sec 194J Fees Professional/Technical Inv

·                     W/H Tax Code P1 – Sec 194J  Invoice – CO @ 5.5 %

·                     TAX Exemption 50%  on W/H threshold Amount 100000/-

SCENARIO: 5

Tax Calculation after expire of Validation date given in the TAN Exemption screen from 01.04.2014 to 30.06.2014. Less than one lac as this scenario working fine for Professional Fess  @ 5.5%

Thanks

Trinath