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Former Member

Service Provider

hi all,

How the TDS (with holding tax) process will affect the MM service procurement flow?. Please give an example aslo.please.

Do i need all 3 vendor group to be created in SAP or single account group as Service Provider will do?

1. Contracter (Service provider also use some materials of his own for the service and raise the bill single bill for service and material (with sales tax).

2. Service provider (no tax payable)

3. Service provider (tax payable)

Thanks

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3 Answers

  • Best Answer
    Sep 01, 2008 at 10:51 AM

    Hi,

    The witholding tax is calculated depending upon the entry made in the vendor master "Witholding Tax" tab .The sections like 194C,194H,194J,194I etc whatever is entered accordingly the tax will be calculated in the MIRO/Invoice.If no tax is to be deducted than at the time of MIRO the entries can be deselected which will not calculate tax.

    Dhruba

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    Former Member
    Sep 01, 2008 at 10:33 AM

    you should two vendor groups i.e one for contractors . other for service provider. if tax is zero select input tax 0 in po.

    regards

    points if helpful/solved

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    Former Member
    Sep 01, 2008 at 10:38 AM

    HI,

    IF THE VENDOR COMES UNDER TAX DEDUCTION , THEN ONLY THE AMOUNT WILL DEDUCT FROM HIS PAYMENT PURELY DEPEND ON SERVICE NOT ON MATERIALS.THE AMOUNT WILL BE DEPOSITED IN HIS NAME WITH GOVT IT DEPT.SO THERE IS NO [PROBLEM FOR PROCUREMENT PROCESS WITH THIS AS THE AMOUNT DEPOSITED WITH HIS ACCOUNT

    FOR SECOND AND ANOTHER QUESTIONS FOR SIMPLIFICATION AND IDENTIFICATION OF VENDORS U CAN MAKE SEPARATE ACCOUNT GROUPS OR NOT DEPEND ON YOUR ORGANIGATIONAL LIMITS

    THANKS REGARDS,

    SRINIVAS KONA

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    • Former Member

      Hi,

      Same service provider, produce single bill for service and the material used during the service.

      For services, service tax to be applied and for material VAT to be applied. At the time Service PO, i dont know, where any material will be used or not?.

      After receiving the invoice only we come to know the material cost and VAT?.

      thanks.