Calculate Tax Deducted at Source
Use
You use this program to calculate withholding tax on vendor invoices.
It you have already posted a down payment for an invoice and withheld tax on it, the system automatically takes the tax already paid into account.
To access the program, from the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Tax Deduction at Source: Classic.
Prerequisites
You have already entered the invoices and the down payments.
Features
Selection
On the selection screen, enter the following data:
�� Run Program in Test Mode
We recommend that you first run the program in test mode, then once you are satisfied with the results, in update mode.
�� Process Invoices Only Select this if you want to post TDS for a specific invoice. It speeds up the response time.
�� TDS Date
This is the posting date that the system enters in the TDS document (update mode only).
Output
The system displays a list of invoices and specifies whether there are any down payments to be cleared against them.
Activities
In the output list, you can clear an invoice against a down payment as follows:
1. Position the cursor on the invoice that you want to clear the down payment against and choose
2. Select the down payment that you want to clear.
3. Save the down payment.
The system:
�� Creates an accounting document to clear the down payment and reduce the vendor liability
�� Recalculates the withholding tax base amount and the withholding tax amount, based on the amount of the down payment against which the invoice was cleared.
You can also clear invoices against down payments by first taking a list of all the invoices listed
above by choosing . You can then clear them by choosing Financial Accounting → Accounts
Payable → Document Entry → Down Payment → Clearing, and then clear each invoice one by one.
By clicking on the document numbers, you can display the document of the TDS posting.
You will have to make a manual FI posting to transfer the amounts from the respective withholding tax accounts (as defined in the withholding tax line items) to the TDS government payable vendor account. To make the payment to the TDS government payable vendor account, from the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Payable → Document Entry → Outgoing Payment → Post.
Handling of Credit Memos
Use
This procedure shows you what happens if you post a credit memo against a vendor invoice. If you have already remitted the TDS from the invoice, the credit memo against that invoice is not considered at all for processing. Otherwise, the system calculates TDS for the amount stated on the credit memo and debits it from the TDS payable account.
Procedure
1. You post a credit memo, entering with the invoice number as the reference number.
2. You post the TDS in test mode.
The system displays a message, telling you to run the program in update mode.
3. You post the TDS in update mode.
The system makes the appropriate posting and displays the number of the credit memo along with the TDS posting document.
Making Down Payments on Invoices Where TDS Has Been Calculated
Use
If you have withheld TDS on an invoice but not yet remitted it to the government, and the invoice needs to be
cleared against a down payment, you have to adjust the tax amount accordingly.
Prerequisites
You have posted the invoice and the TDS document has been created.
Procedure
1. Clear the down payment against the invoice using the standard clearing transaction.
2. The next time you run the TDS posting program in update mode, the system makes a posting to correct the TDS, by debiting the G/L account associated with the entered tax code. It also displays the numbers of the down payment clearing document and the TDS document.
Reversing TDS Postings
Use
If you reverse an invoice or down payment that you have already calculated TDS on, you also have to reverse the TDS postings.
Procedure
When you reverse a down payment in the standard, the system automatically reverses the TDS posting. Whenyou reverse an invoice, the system reverses the TDS posting the next time you run the TDS report in update mode.
Remittance Challans
Use
When you have remitted the deducted TDS to the government, you are sent a bank challan confirming that payment has been received. The system allows you to record the number of the challan in the invoices from which the TDS had been deducted and paid. You can also use this function to change the challan number or date later on, if necessary.
Features
To access this report, from the SAP Easy Access screen, choose Accounting → Financial Accounting →
Accounts Payable → Withholding Tax → India → Withholding Tax → Enter Remittance Challans.
Selection
The system displays the transactions on which you have withheld TDS. You select the transactions for which you
have remitted the TDS, enter the challan details. The system then records the challan number in each of the
transactions.
If you need to change a challan number or date, enter the challan number and date that is to be changed.
The actual TDS amount and the surcharge on this TDS amount are shown separately.
To handle cases where the company needs to have many TAN numbers, you can enter the TAN number when you update the challan number. This number will be used subsequently for the certificates.
Print Certificates
Use
You use this program to print TDS certificates for your vendors (individually or in batches). It covers the TDS in all the invoices and down payments that you have posted over a specified period.
To access the program, from the SAP Easy Access screen, choose Accounting → Financial Accounting →
Accounts Payable → Withholding Tax → India → Withholding Tax → Certificates → Print → Vendors.
There is a separate print program for one-time vendors, which you can access from the SAP Easy
Access screen, by choosing Accounting → Financial Accounting → Accounts Payable →
Withholding Tax → India → Withholding Tax → Certificates → Print → One-Time Vendors.
Prerequisites
You have already remitted the TDS to the government and recorded the challan number in the transactions concerned (see Update of Challans). Only transactions with a challan number can be included in certificates.
The certificate printing program uses SAPscript form J_1ITDSCERT. If there are some changes in the certificate format this layout set can be changed accordingly.
If the certificates are to be divided by business area, with a unique number range per business area, you must have maintained the sections as a combination of section and business area, so for business area 0001 and section 194C, you could maintain the section as 194C0001, for example.
Features
Selection
Enter data as required, including:
�� The dates of the transactions that are to be covered in the certificate
�� Withholding tax section
If you enter the business area in combination with the section, it must also be used in all other
transactions involving this certificate, including annual returns.
Output
If you select the preview option, the system displays a certificate without any certificate number. The number will
be assigned only when the certificate is actually printed directly (not from the print preview).
A summary of all the certificates is printed at the end, summarized by certificate and challan number.
Reprint Certificates
Use
You use this program to reprint TDS certificates.
To access the program, from the SAP Easy Access screen, choose Accounting → Financial Accounting →
Accounts Payable → Withholding Tax → India → Withholding Tax → Certificates → Reprint.
Features
Selection
On the selection screen, enter the numbers of the certificates that you want to reprint and the details of the signatory.
Output
The system prints the certificates. Each certificate is marked as a duplicate.
Cancel Certificates
Use
You use this program to cancel TDS certificates.
To access the program, from the SAP Easy Access screen, choose Accounting → Financial Accounting →
Accounts Payable → Withholding Tax → India → Withholding Tax → Certificates → Cancel.
Features
Selection
Enter data as required, including the number of the certificate that you want to cancel.
Output
The system marks the certificate as canceled. It does not delete it from the database.
Archiving of TDS Documents
Use
You use these functions to archive documents for tax deducted at source (TDS). For more information about
archiving, see Introduction to Data Archiving.
Prerequisites
Before you can archive this data, you must have archived the related data form Financial Accounting (FI) and
Material Management (MM).
Features
The TDS documents are archived using archiving object J_1ITDS, which is supplied with Country Version India
(CIN). It is used for archiving the data in tables J_1ITDS and J_1ICERTIF.
Once you have archived the TDS documents, you must delete the originals from the database. Once you have deleted the originals, you can reload them from the archive file. Finally, you can also analyze them.
Archiving TDS Documents
1. From the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Utilities → Archive Documents.
In the Object Name field, the system displays the name of the archiving object, J_1ITDS.
2. Choose Archive.
3. Enter data as follows:
�� Variant
Enter the report variant that you want to use. You can create a variant if you need to.
�� User Name
Enter the name of user who will archive the data.
4. To specify when to start the report, choose Start Date.
5. To enter the print parameters, choose Spool Params.
6. Choose .
Creating an Archive Report Variant
1. Choose Maintain.
2. Enter a variant name of your choice.
3. Choose Create.
4. Specify which certificates you want to archive and enter other data as required:
�� Create
Specifies that the program will run in update mode.
�� Delete in test mode
Select this for test runs.
�� Package
Enter the optimum package size.
�� Comments
Enter any comments for your own reference.
5. Choose Attributes.
6. Enter data as required.
7. Save the variant.
8. Go back to the Archive Management: Create Archive Files screen.
Deleting TDS Documents
1. From the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Payable → Withholding Tax → India → Withholding Tax → Utilities → Archive Documents.
In the Object Name field, the system displays the name of the archiving object, J_1ITDS.
2. Choose Delete.
3. In the User Name field, enter the name of user who will delete the documents.
4. Select Test Run if you do not want to run the report in update mode.
This will report any inconsistencies between the table data and the archive file that can be fixed.
5. To specify what archive file you want to delete the documents for, choose Archive selection.
6. To specify when to start the report, choose Start Date.
7. To enter the print parameters, choose Spool Params.
8. Choose .
Reloading TDS Documents
1. From the SAP Easy Access screen, choose Accounting → Financial Accounting → Accounts Payable →
Withholding Tax → India → Withholding Tax → Utilities → Archive Documents.
In the Object Name field, the system displays the name of the archiving object, J_1ITDS.
2. Choose Reload.
3. Enter data as follows:
�� Variant
Enter the report variant that you want to use. You can create a variant if you need to.
�� User Name
Enter the name of user who will reload the data.
4. To specify what archive file you want to reload the documents from, choose Archive Selection.
5. To specify when to start the report, choose Start Date.
6. To enter the print parameters, choose Spool Params.
7. Choose .
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