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
- 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 %)
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 🙂