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Former Member

Witholding tax on advance payments

Posted on May 05, 2011 at 06:57 AM 17 Views

Hi Sap Gurus,

We were deducting tax through SAP throughout the FY-2010-11 and updating the challans in J1inmis.

We are deducting tax on both invoices and advance payments and adjusting thouse advances against invoices by using t-code f-54 successfully.

But now when our auditors have audited our accounts they have discovered that we have short deducted tax on certain advance payments, and on their advice we have deposited the tax advice by them.

Now to update challan in sap i need entries in tables relating to tds in sap, but i am unable to find the way out to enter the transaction.

because in routine when we post the advance payment entry then following entry is passed:-

party Debit 2000

bank credit 1900

tds credit 100

but in present case i have to enter entry:-

Party debit 100

tds credit 100

and to update the challan by using J1inmis and generate form 16a.

Please help me gurus.

Deepak

Edited by: deemon on May 5, 2011 8:57 AM

Edited by: deemon on May 5, 2011 9:00 AM

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on May 05, 2011 at 08:42 AM
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    Hi Deepak,

    What you want to post is not feasible.. You are looking for a Manual entry and if you pass this manual entry, it will not get updated in With_item table and from thereon, you won't be able to see anywhere.. neither in J1INMIS, J1INCHLN.. and that means no TDS certificate..

    Please explain the issue.. how can be the TDS deducted be less? if theTDS rates and percentage were corrrectly assigned in Tax Code Configuration, then system would deduct the correct amount. Why are you having to post additional TDS posting after you ahve already adjusted the Advances with Invoices. Is it some kind of Penalty that you are talking about?

    Regards,

    SAPFICO

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    • Former Member
      May 05, 2011 at 09:01 AM

      Dear Sir,

      Some entries were not routed through accounts means that payments were directly released by our finance department through demand drafts hence we failed to deduct tax.

      And after such payments were made we received invoices for a minor lessor amount on which tds was deducted by us, but as the amount of invoices is less than the advance payment, the ledger of the party still shows a debit balance.

      Our auditor has adviced us to deduc tax on such balace debit amount consiering that particular amount as debit.

      Regards,

      Deepak

  • author's profile photo Former Member
    Former Member
    Posted on May 05, 2011 at 09:53 AM
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    Hi

    In your case , if you have not cleared the down payment then please reverse the entries you have made and then post the same as you required

    When to deduct TDS

    Regards

    Praveen PC

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