India Payroll (Company Leased Accommodation)

[Former Member]

India Payroll (Company Leased Accommodation)

Hi SAP Gurus,

I am working as a support consultant for India. I have a problem regarding Company Leased Accommodation.

I am maintaining IT 581, Accommodation Type 5th option (Company Leased) and Rent Amount.

Now my concern is how SAP calculating this amount as a Perquisite and where is the exemption giving in Income Tax Reports (YP40_ZRHRHY36A and Form 16)

I am very much thankful to you who give some advice to me on this in detail.

Thank You

[Former Member]

Hi,

Process Flow.

1. The Housing (HRA / CLA / COA ) India payroll function (P0581), checks the housing records of the employee in the Housing(HRA / CLA / COA) infotype (0581). It stores the data in the internal table HRA.

2. The Housing(HRA / CLA / COA) Details payroll function (INHRA) reads the internal table HRA to compute the exemptions and perquisites on employee housing. The computations are mainly based on:

¡ Accommodation Type – Determines whether the system must compute an exemption or a perquisite

¡ City Category – Determines the percentage of exemption or perquisite that is applicable on an Accommodation Type. For example, the percentage of exemption in case of a Metro is 50 percent, and for a Non-Metro, it is ten percent.

Exemptions

The Housing(HRA / CLA / COA) Details payroll function (INHRA) takes the minimum of a, b and c, as the exemption amount:

a. The HRA basis wage type (/114)

b. Actual Rent Paid

c. Rent Paid minus ten percent of the HRA basis

Perquisites (CLA, COA and Perkable Hotel Accommodation)

¡ The Housing(HRA / CLA / COA) Details payroll function (INHRA) computes housing perquisite as:

Perquisite basis =

Perquisite basis (YTD)+ /115 + (/115 * projection)

And

(/134 - /133) * No. of Months (CLA/COA) Divided by Total No. of Months

Where,

§ /115 is the COA/CLA Basis wage type, generated by the rule INCLA (/115 = /124 - /132). It stores the basis for COA, CLA, and Perkable Hotel Accommodation.

§ /134 is the Annual Non-perk amounts wage type

§ /133 is the Annual Exemptions wage type

¡ The Housing(HRA / CLA / COA) Details payroll function (INHRA) also checks the table view Percentage/amount for housing related constant (V_T7INR3) for the percentage of perquisite applicable on perquisite basis.

There may be a difference between the eligibility of the employee towards CLA/COA and the actual rental costs. The Housing(HRA / CLA / COA) Details payroll function (INHRA) will process this difference in amount as per the configurations in the COA/CLA Delta Treatment constant (CADTR).

For more information, see Payroll India ® Housing ® Maintain the processing options for CLA

¡ After computing the perquisite, the Housing(HRA / CLA / COA) Details payroll function (INHRA) generates the Perk value:housing wage type (/3RB).

3. If the employee received a domestic help benefit, the Housing(HRA / CLA / COA) Details payroll function (INHRA) will add a perquisite value to the gross salary. It generates the Perk value:helpers wage type (/3RC), for storing perquisite on helpers.

4. If the company has provided furniture to the employee, the system will compute a perquisite on the same. The Housing(HRA / CLA / COA) Details payroll function (INHRA) generates the Perk value:furniture wage type (/3RD) for storing the perquisite on furniture.

For all percentages or values applicable during an exemption or a perquisite calculation, the Housing(HRA / CLA / COA) Details payroll function (INHRA) reads the table view Percentage/amount for housing related constant (V_T7INR3).

Result

The Income Tax functionality reads the exemptions and perquisite wage types generated by the Housing(HRA / CLA / COA) Details payroll function (INHRA) for further processing.

For more information:

http://help.sap.com/erp2005_ehp_02/helpdata/en/49/f06b9101384d8194255d7ceb10c0c7/frameset.htm

Reward if helpful,

Regards

Tomesh

[Former Member]

Hi Dear Tomesh,

I am very happy to see the reply,

The document what you sent is very useful. I got an idea on CLA now. I checked my system config but still I am not clear on some issues like CADTR.

Can you provide me any screen shots, how to maintain MD in IT 581 and how it will calculate in Function INHRA. The Perquisite amount how to figure out in Form 16 and monthly IT report (YP40_ZRHRHY36A).

Thank You Very Much.

[Former Member]

Hai..

In the Infotype Itself u can find the check box, HRA to be TAX exempt..