TDS exemption issue Tan based exemption

[manoj_chauhan1]

Hi all ,

Client wants to have Tan based exemption ( section code wise ) . SAP version is EHP6 for SAP ERP 6.0 .I have set limit of 100000 for invoice and down payment each in vendor master record . normal rate is 2%. and exemption is 75%. I first did a down payment of Rs 50000 and TDS deduction is done at reduced rate ie Rs 250 . Then I am posting an invoice of Rs 100000/- in which I am entering withholding tax base amount as 50000 /- as already I had deducted tax on down payment . System is calculating 2% on Rs 50000 ( normal rate ) however it should do at concessional rate as Rs 100000/- limit has not depleted . Is this process ok ? Is this a issue for which some config is required ? Please help in resolving .

In vendor master data when we say 100000 limit for Invoice and advance payment , is that amount to limit of Rs 100000 or Rs 200000 for vendor ?

[P15309982]

Hi,

same issue face with us, Select the line which your want to delete and click on delete .close the Master window then again go to tan details it will not show. and if you are done booking entries then it will not deleted.

[karthik_mahadevaiah]

Hi Manoj,

A couple of points here. Your issue deals with the process of Down Payment and TAN based exemption.

Firstly, talking about down payment, If you have posted a DP where TDS is deducted ( as per your eg, TDS on 50000 would get deducted), you could then post an invoice (without manually changing the base amount). Here TDS would again get deducted ( TDS would be calculated on 100000). So now, since there has been a double taxation ( ie TDS on 50000 has been calculated twice), you could perform a down payment clearing process ( eg: F-54). This will take care of the double taxation case.

Secondly, talking about the TAN based exemption, as per the exemption certificate, you will receive an information on the threshold amount.

In your case, it is 100000. For this, you would have to maintain 100000 for the invoice type and 100000 again for payment type. This does not mean you are entitled to avail an exemption for 200000. You should make sure you have performed the mapping of invoice and payment time tax type/tax code in view V_FIWTIN_TDS_MAP. Refer note 1945137 for more information on this configuration.

You could also refer the below wiki link for more information on the TAN based exemption:

https://wiki.scn.sap.com/wiki/display/ERPFI/TAN+Based+Exemption+configuration.

Hope this information helps.

Thanks,

Karthik Mahadevaiah

[former_member781832]

Hi Karthik,

I've wrongly maintained Tan based exemption limit. Now I need to delete these.

I selected & deleted the Tan based exemption limit, came back and save. When I check again those are not deleted.

Can you tell me what might be the possible solution to delete? This is happening only for one vendor