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

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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’.

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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/-

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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/-

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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/-

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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/-

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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%

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Thanks

Trinath

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33 Comments

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        1. Trinath Gujari Post author

          Hi Bhanu

          I am not sure about the customer Tan exemption if it is available for vendor then it should also there is possibility for customer we need to search for work around   

          thanks

          Trinath

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      1. Trinath Gujari Post author

        Hi Mansi

        Kindly give this note to your basis team and tell them to implement once done by basis team then follow my steps as mentioned above

        hope this is clear

        thanks

        Trinath

        (0) 
  1. Jay paul

    Hi All ,

    i have one query

    i want to implement oss note 1945137 , what is process, how can i implement , my scenario is , one vendor can use  two withholding tax exemption certificate , at one withholding tax type , at a time ,  my client want to use , it is  possible or not ,,

    pls help

    Regards

    Jay

    (0) 
    1. Trinath Gujari Post author

      Hi Ankit N Jay

      As per above note we can activate the the Tan exemption Tab but origin of the tan exemption is totally depend on the Withholding Tax Code and W/H Tax type if you any vendor having two exemption certificate then we need to create two different W/H code and in Tax Exemption Tab you can assign the W/H Tax code to respective Section code hope this is clear

      if any query then please revert it back

      Thanks

      Trinath

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  2. Ankit Agarwal

    Hi Trinath,

    Very good document.

    I have also the same scenario as described by Jay Pal. Is it possible through this note.Kindly suggest.

    Regards,

    Ankit K. Agarwal

    (0) 
  3. Jay paul

    Hi Trinath

    Please help us sir ,,,,,,,, 🙁 🙁

    @ Hi Ankit ,, i got solution , but still now i am confuse, i have searched , but still now i can  not find any solution..,  i  discussed this scenario Mr.Vibin Sir, he told me this is invalid scenario , for more information clink this link http://scn.sap.com/docs/DOC-50192

    @ Ankit ,,if u find any solution , let me know 🙂

    Thanks & Regards

    Jay

    (0) 
    1. Trinath Gujari Post author

      Hi Jay

      Sorry to respond your mail since i am out of state i have limited access of SAP system so can’t help on this please raise this issue to SAP is the better solution

      Thanks

      Trinath

      (0) 
        1. Trinath Gujari Post author

          Hi Ajinkya

          I am very sorry for delay to my response since i don’t have access at client place please tell me  your query so that i can help

          Thanks

          Trinath

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  4. Jay paul

    Hi Trinath sir ,

    After implementing above note , our client scenario is below for e.g

    1) Client has two WHT Exemption certificate , and he want to use both exemption certificate at the one vendor invoice posting , and section code both the same, and WHT type  E1 and WHT code E1 , so it can be possible use both exemption certificate at one vendor invoice,any  India law for WHT exemption certificate ?

    2) in Vendor master CIN TAB , we have given all the details for e.g , section code, WHT type and WHT code , Except Not using threshold amount field , tac calculation not based on formula , so we can use normal scenario , is possible to deduct WHT ?

    Regards

    Jay

    (0) 
    1. Trinath Gujari Post author

      Hi Jay

      As per your requirement please correct me if i am wrong if one vendor having two exemption then we need to create two separate WHT Code so that exemption percentage may varies

      for example

      For Contractor

      Co : 2 % exemption is 0.5%  for section / region (xyz) for Rs. 100000

      Co : 2% exemption is 0.4% for section / region (abc)  for Rs.  100000

      in above two example we need to create two different WHT code

      Hope this is clear

      kindly check and confirm for the same

      Trinath

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      1. Jay paul

        Thanks for reply , Trinath sir,

        Our client requirement is , for e.g  one vendor having Two Exemption certificate , they want to use two withholding exemption certificate at once invoice , for above your example but the section code and business place is same & Both the certificate  Exemption from TO is same.

        Co : 2 % exemption is 0.5%  for section / region (abc) for Rs. 100000 , Exemption certificate no is test12

        Co : 2% exemption is 0.5 % for section / region (abc)  for Rs.  100000 Exemption certificate no is test12

        so it can be possible Using both exemption certificate at once invoice. for your ref  , i have attached screenshot of vendor master CIN Details Tab , cin details.png

        Regards

        Jay

        (0) 
        1. Trinath Gujari Post author

          Hi Jay

          In above exemption how can system identify which exemption need to calculate first

          system will take which ever come first so i had suggested you to create two different code


          and try hope this is clear

          thanks

          Trinath

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    1. Jay paul

      suppose if i created two different tax code , but withholding tax key is same both the tax code is same , for e.g 194c , but Business  place and section code is same , now i am i am assign two different tax code , in CIN Details tab, now i want to use both the exemption certificate once invoice, so it can be possible , or any law for WH tax exemption in India.how many exemption certificate we have received from govt.

      Regards

      Jay

      (0) 
      1. Trinath Gujari Post author

        Hi Jay

        Usally indian govt provide only one Exemption certificate for 194C for particular Business place and section code if other then 194C then different Exemption certificate will be given by Govt

        for each section Code for that particular business place and section code

        Hope this is helpful

        Thanks

        Trinath

        (0) 
          1. Jay paul

            Hi Trinath sir,

            My client want to use slab wise withholding tax calculation ,

            Invoice amt                                    WHT%

            If amt 0     to 1000                            0%

            if amt 1001  to 2000                         10%

            if amt 2001  to 3000                         20%

            if amt more then 3001                      30%

            please help how can i configuration above scenario , for india country ,

            Regards

            jay

            (0) 
            1. Trinath Gujari Post author

              Hi Jay

              As per above scenario  it cannot possiable in TAN exemption You may go for userexit

              Tan Exemption is only for threshold Amount  if amount Exceed then System will not control it control only by exemption dates not on Amount

              Hope this is clear

              thanks

              Trinath

              (0) 
              1. Jay paul

                Hi Trinath,

                As  per your above example , Please explain me which WHT your using  P1 & R1 , both the same or different ? , what is uses of V_FIWTIN_TDS_MAP’ tab , any link between WH taype? using this table mandatory or not ? . any working threshold limit in cin tab vendor master data .

                Regards

                Jay

                (0) 
              1. Jay paul

                Hi Trinath ,

                If are posting more then threshold limit then system calculate full base amount ,why ? this sap standared functionality.?

                Regards

                Jay

                (0) 
  5. Virendra Sharma

    Hi Trinath,

    Sorry but example you have shown is wrong. Since system should calculate full TDS on over an above amount of exemption limit. In your case system is calculating exemption rate on amount which is already exceeded from amount of exemption limit. Please check your vendor master data and make sure that you haven’t maintained any exemption detail in vendor’s withholding tax tab. Exemption details should be maintained in TAN Based tab only then only system will calculate TDS properly.

    Regards,

    Virendra

    (0) 

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