How to change TDS in F-02

[Former Member]

Dear Friends

My end users make entry for the payment of security guards through t code: F-02. The present TDS is 2%. They want to make TDS as 1% once they make payment through F-02. How to make it possible?

How to change TDS in F-02

I am new to FI Pls help

Thanks

Sangeeta

[Former Member]

Dear Sangeetha,

We have different options in TDS rate changes.

1) If it is a fixed change by Govt of India for a particular period, you have only option in Configuration changes in Tax codes.

2) If it is for a particular Vendor only, then you have the option in Vendor Master to provide the Exemption rate ( 1% ) on a particualr period (01.04.2009 to 15.04.2009).

3) If you want to calculate TDS for half of the amount (60,000) in Total amount (1,00,000) only then you can change the W/H Base amount (as 60,000) in F-02 or FB60 itself.

All the best,

Dharma Rao. Yekula

[Former Member]

Dear

Pls let me know how to do it step by step:

1. Define Tax type for Payment Posting

2. Define Withholding Tax Code

3. Assign WHT to Company Code

4. Define accounts for WHT to be paid over

Thanks

sangeeta

[Former Member]

Dear Sangeeta,

1. Define Tax type for Payment Posting:

Either it is Invoice tax type (C1) or Payment tax type (1C) go to new entries and give the 2 digit tax code, description and select the Gross Amount radio button in calculation tab under base amount and select Round W/H tax amount (3rd) under Rounding rule tab select page down and select the Central Inv.Prop.(Only for Payment tax types) Radio button under central invoice tab and save the entries.

2. Define Withholding Tax Code

Enter the W/H Tax type and Code (C1-C1 for Invoice, 1C-1C for Payment), give the W/H Tax Key (194C)

above settings are common for all type of tax codes. Base amounts and calculation will be changed as follows: I am providing exmple for 194C calculation...

For 194C Tax code Base Amount Posting Ind Cal: W/H tax rate

Basic: (C1-C1 for Invoice, 1C-1C for Payment): 100% 1 2

Surcharge: (C2-C2 and 2C-2C 😞 2% 1 10

ED Cess: (C3-C3 3C-3C 😞 2% 1 2

H.ED cess: (C4-C4 4C-4C 😞 2% 1 1 and Save the entries

3. Assign WHT to Company Code:

Assign all the tax types both Inv and Pmt Tax types to your com.code ( C1,C2,C3,C4 and 1C,2C,3C,4C)

4. Define accounts for WHT to be paid over:

Create 4 GL accounts for each section of W/H tax key like above Basic,Surch,Edces, H.ED cess and assign all the GL's to Tax types and codes, which are created by you.

All the Best,

Dharma Rao.Y

[Former Member]

Hi Dharma

Thanks for detailing. But how to assign gls to the tax code? Where should I do it? In normal input / output tax codes we generally maintain a condition record. For this dont we need any record?

Thanks

Sangeeta

[Former Member]

Dear,

Yes, you don't need any Condition records for this. Directly you can assign the GL accounts to Tax types and codes in SPRO>FI>EX W/H Tax> Posting>Accounts for W/H Tax -->Define Accounts for W/H Tax to be paid over.

All the Best,

Dharma Rao. Yekula

[Former Member]

Hi,

Assignment accounts for automatic postings:

Up to extended with holding tax the path is same

Postings  Accounts for with holding tax  Define accounts for with holding tax to be paid over

Give the chart of accounts:

Enter

Select with hold tax code check box

With hold tax type check box

Save

Give the with holding tax type, withholding tax code and Gl Accounts

Regards

Surya

[Former Member]

Thanks

Sangeeta

[Former Member]

Hi Snageeta,

For that tds % change you have to do at SPRO level ,not in F-02 level.

Go through below path and change % as your requirement

SPRO>FI>FI GLOBAL>WTX>EWTX>CAL>WTX CODE> DEFINE WTX

Regards

Surya