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TAN based exemption in SAP - One TAN for multiple vendors per region

Mar 27, 2017 at 06:42 AM


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Dear Experts,

I have a query on TAN based exemption which is applicable in perspective of TDS deduction in India

  • Background: In India, companies can define the withholding tax exemption for a vendor on the basis of the tax account deduction number (TAN)
  • Business scenario: For instance, there is a vendor who has received TAN based exemption for WHT as per Sec. 194C for a certain amount eg. 10,00,000 valid for a financial year Now because this vendor operates from multiple states and billing is done to each vendor codes separately,there are multiple vendor codes for the same vendor in SAP and invoices are separately raised for these different vendor codes.However the TAN number would be same for the vendor.
  • Issue: Since the TAN number is same for the vendor and there are multiple vendor codes created per state,there is an issue in tracking the limit for TAN based exemption in SAP In the prosposed GST Law also the above scenario would pose a challenge as vendors would be required to take separate registration per state of operation Kindly advise how to map the above scenario to ensure correct TDS/WHT deduction for the vendor based on TAN based exemption functionality

Thank you,


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2 Answers

Vinod Kumar May 27, 2017 at 11:21 AM

region wise registration is required for GST but not for WHT. No multiple TAN numbers will be issue, please get it clarified.

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Ramnik Ruprai Jun 02, 2017 at 05:50 AM

Hi Gaurav

Pls go through below SAP notes for your requirement

2156384 - UDO report : multiple secco to TAN changes

2081402 - TAN based exemption and TDS reporting on Section code group level

For this requirement you need multiple section code state wise else you will not be able to use this fucntionality.


Ramnik Singh

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