Vendor - Tax deduction at lower rate - MIRO & FB60

[Former Member]

Hi all,

Currently we are having one issue of u201CTax deduction at lower rateu201D for a Vendor who is having such certificate with him.

For amount purpose we have set the SPRO setting but the user is asking for the date control also since the Vendor is having the relevant certificate till 31.03.2012 and after that, lower rate Tax deduction will not be allowed.

Simple option is to change the Vendor Master with the original tax type+ Tax code (Normal Rate) combination to calculate tax at the normal rate. But if could not cross the amount limit before 31.03.2012 then that will be difficult to keep an eye on date i.e. 31.03.2012 and then change the master data of u201CNu2026u201D No. of Vendors .

We want to put a condition in a system as; system should check the system date with the tax type date to get a date control. We have restricted the date of u201Cnewly created tax typeu201D till 31.03.2012.

In case of MIRO testing, we have use a user exit which is correctly comparing the system date with the tax type date in runtime. If the tax type date is older than system date then system is throwing an error to change the master date (FK02 / XK02) of subject vendor.

In case of FB60 we are facing a problem since not able to cross confirm the tax type date with the system date. We are trying BTE u2013 1140 for FB60 but in runtime we are not able to get the tax related details / tables.

Is there any workaround or way in BTE u2013 1140 for FB60?

Regards,

Shridhar

Edited by: Shridhar Sawant on Nov 2, 2011 2:23 PM

[Former Member · Accepted solution]

If are using EWT (Extended Withholding Tax) in Vendor master you can maintain exemption number, rate, reason and from To dates. It will check dates and lower rates for both MIRO and FB60

[Former Member · Accepted solution]

Hi Ramesh,

In the SAP Std. setting of Formula we are maintaining one more line for same TAX TYPE + TAX CODE + COUNTRY combination but for the ending date of lower rate tax deduction.

Since there is no "To date" option in Formula setting, we are maintaining one more line For e.g. in the 1st line we have a date as 01.04.2011 (i.e. Valid from) and in the other line we have mentioned date as 01.01.2012 (i.e. To date) since Vendor is having the lower rate tax deduction certificate uptill 31.12.2011.

In the first line of formula (Valid from 01.04.2011) we have maintain :

To Base amt W/tax Reduction base amt.

175,000.00 3.00 -

9,999,999,999.00 10.00 175,000.00

In the second line (Valid from 01.01.2012) of formula we have maintain :

To Base amt W/tax Reduction base amt.

9,999,999,999.00 10.00 -

Cross confirming the various scenarios since date accumulation of tax setting is on in Tax Type that we are considering.

Will confirm to you the change suggest by you.

If these changes doesn't work then we have to go to the option of User exit or BTE for MIRO and FB60 testing.

Have any idea about the above mention settings ?

Regards,

Shridhar

[Former Member · Accepted solution]

Hi, In vendor master no need of maintaining second line. Posting date will be checked with the Vendor Master exemption dates if it is Yes it will apply exemption if not normal rate of tax code. Alternatively you can create a saperate tax code for lower rate and assign it to vendor

One more is normally Vendors may get extension or new certificates for the next periods

Thanks .. Rameshs

[Former Member · Accepted solution]

Hi,

By entering the 2nd line in Vendor Master we will control the date wise requirement. But what about the amount wise control ?

We will have to use SPRO....Formula setting.

Initially client told us to consider the lower rate TDS ending date as for e.g. 31.10.2011 or 31.12.2011 (i.e. other than the fiscal year end for e.g. 31.03.2012). for that purpose only we were trying for BAdI or BTE but it was hypothetical requirement given by client hence not given the priority right now.

In Std. Formula (SPRO) setting we were not able to map the date wise control scenario since system is accumulating the amount from the starting. We tried all the possibilities but in one or the other scenario, we were not able to get the correct amount.

My point is how to :

1. Co-relate Vendor Master setting with the Formula (SPRO) setting ?

2. Or do we need to depend upon the Formula (SPRO) setting only by maintaining 2 lines respectively for New Tax code (Reduced rate) with starting date of certificate and Normal rate (Existing) tax code with Valid From date as the next date of certifcate ending date for e.g. 01.04.2012?

Regards,

Shridhar