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Former Member
Apr 22, 2009 at 07:05 AM

Professional Tax PT basis for transfer cases


Hello Junta,

My client has multiple locations in India. Professional Tax has been configured for multiple states.

An employee is transferred from Bangalore to Hyderabad (for example), on the 1st of may (April Payroll was run and Ptax in Bangalore for April was deducated in April).

Now if Payroll is run for May, Ptax according to Hyderabad rates is being deducated properly. However if payroll is run in May with a retro from April or any prior month, PTax basis is being calcuated as the cumulated value of April's and May's Ptax basis.

i.e if PT basis in April is 20000 and PT basis in May is 20000. PT basis for May with retro upto April is being calculated as 40000.

I have observed in the Payroll log that this is basically happening because of the code in INPTB function.

When an employee's latest state for PT (Hyderabad,AP for May) is not as the same as the one (Bangalore, Karnataka) in retro period (April), code for Case (1-8) is run through based on logic and instead of the recalculating latest (April) PT Basis based on gross, the Old Results table PT basis (April) is being considered without the VOTYP indicated set to I. when VOTYP is not set to I, I am guessing that It is not making.

(Case 1 to 8): Import /3P2 From ORT and Prorate.

However in case employee doesnt change state

(CASE 16): Prorated Computation on new basis (/118). Gross C/F State. VOTYP = I. C/F (RT - ORT) /3P2.

This would finally result in /ZPT being present in the final RT of April (retro) results which would cumulate to May PT basis and give us the wrong PT basis for May.

I am sure there would be many cases in many companies in which people would be transferred between states. However retro being run into a period in previous state and PT basis difference being a small value being observed might be slightly rare.

Kindly help me find out if this is a problem only in my system or if I have to raise it with sap.

Thanks in advance,


Edited by: Anand M on Apr 22, 2009 12:35 PM

Edited by: Anand M on Apr 22, 2009 12:41 PM