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j1incust....(enter withholding tax certificate from customer )

Dear Experts

if we entering data to this t code j1incust(enter withholding tax certificate from customer )what the advantage?

Thnakx in advance

Ajeesh.s

Edited by: Ajeeshsudevan on Sep 23, 2011 11:46 AM

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    author's profile photo Former Member
    Former Member
    Posted on Sep 23, 2011 at 11:23 AM

    Hi Ajeesh,

    As already mentionned in standardf help from sap, you use J1INCUST which is a report to record the with. tax certificates sent to you by your clients. In doing so, the system clears the wi. tax to a G/L account that records how much tax your customers have withheld on your behalf, known as the customer tax creditable account. You can offset this tax against your income tax payable at year-end.

    And you run the report immediately you receive a certificate from a customer.

    Then system creates an accounting document to transfer the withholding tax from the G/L account for the withholding tax deducted by your customers to the customer tax creditable account.

    Best regards,

    Tarek

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    • Dear Ajeesh,

      In J1INCUST, what we are doing through SAP system is, we have given some service to someone else and he deducted the tax for us and remitted to the tax authority and issued a certificate to us. Now we are tracking our service and the tax deducted through this certificate number. Like I mentioned while answering one of your queries, the J1INCUST program will be updating the certificate number given by the customer in the WITH_ITEM table. If tax was not deducted, you will not get certificate and you need not update as well. But if the customer is giving certificate means, the tax got deducted which you need to update in WITH_ITEM table. If tax type and tax code are not associated; you will not have a WITH_ITEM entry and there is no use in running this program.

      Best Regards,

      Vibin

  • author's profile photo Former Member
    Former Member
    Posted on Sep 23, 2011 at 11:13 AM

    The process can be used as under:

    when customer payment is received after deduction of income tax (tds), entry will be posted to " TDS receivable Account". These are the amounts for which you have not received the certificates but tax is deducted by customer. When the certificate entry is done through tcode "j1incust" transfer entry is posted from Tds Receivable to TDS received, now you can claim this amount in your income tax returns.

    Rgrds

    Shailesh

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  • Posted on Sep 23, 2011 at 09:51 AM

    Dear,

    The tax deducted by the vendor is remitted to the tax authorities on specified

    due dates. The vendor gives a Withholding tax certificate to the customer for

    the withholding tax deducted.

    The customer can claim this withholding tax (as advance income tax paid) in

    his annual returns to Income tax authorities

    hope it gives you some idea

    regards

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  • Posted on Dec 26, 2011 at 06:34 AM

    Am closing this issue

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