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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

 

https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/834/Press-Release-Reduction-in-TDS-TCS-Rates-dated-14-05-2020.pdf

 

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 .
  1. County IN
  2. 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

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