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How to configure recent amendment for TDS 25% in INDIA
How to configure recent amendment for TDS (25%) from Government of INDIA in SAP ?
13th May, 2020 press release
Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021
Please find the link to get Press Release Document
Assumptions :-
- Configuring in SAP system.
- All the basis WHT is completed .
*Formula base WHT is checked
- All the master data are set correctly in vendor master .
- County IN
- Maintain WHT code
To test the WHT Configuration using program RFWT1000 before posting transaction .
Below Screen shows the posted document for the WHT code rate 10% Cal : 25% of 10% (7.5 %)
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Example shown for
Define Withholding Tax Type for Invoice Posting
Additional Configuration for the amendment
Below are the additional steps to perform for the expected results .
Posted document Display
Note : same wise configure for Define Withholding Tax Type for Payment Posting .
There is no validity end date for TDS.consider to year-end activity .
Change Condition record in case TCS is derived from pricing procedure .
please reply if their are any other ways to get the expected results 🙂
Sources
https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/834/Press-Release-Reduction-in-TDS-TCS-Rates-dated-14-05-2020.pdf
Nice blog Murali but my one issue regarding this solution, tax rate not getting updated in WITH_ITEM,
In addition, tax rates not updated in stranded report J1INEMIS
do you have solution on this?
Thanks for the Q’s Chinmay ?
Kindly have a look on note number : 1695696
Ref:
https://wiki.scn.sap.com/wiki/display/ERPFI/New+MIS+Report++for+INDIA+-+J1INEMIS
Hello all,
Kindly refer this blog , issue with J1INEMIS report has been addressed.
https://blogs.sap.com/2020/06/08/issue-solution-with-j1inemis-reporting-due-to-statutory-changes/
Hi Murali,
I think we can use existing tax code only but need to update the exempted rate and date range in vendor master.It will help user to not change new TDS code after given date.
TDS Vendor