First of all Thanks for the Extensive support till date.
There is a Typical Scenario in my company. There are few vendors for which Goverment has given exemption on TDS to a certain amount.
For e.g. Say for Vendor A Government has authorize to deduct TDS of 0.01% upto Rs 1290823/- and above that there will be normal deduction of 10% TDS.
No keeping in mind the above scenario the system should automatically check while making a voucher posting that the total amount or payment made till date to the vendor has crossed the above said amount or not.
If the total transaction till date for the above said vendor is below the above amount the TDS percentage would be 0.01% else it will be 10%.
Is there any way to configure the Witholding tax in the standard form meeting the above requirement or is there any alternative to it.
Thanks & regards
Om prakash Gupta
Go to SPRO - >FA (New) -> Withholding tax -> Extended WHT -> Basic Seetings -> Define reason for exepmtion
Go to SPRO - >FA (New) -> Withholding tax -> Extended WHT -> Calculation -> India -> Assign Exemption reason to WHT.
But, better solution is
1. Create a tax codes with 0.01% (X1) tax and 10% (Y1). In Vendor master, Assign the Tax types and tick the box "Liable to"
Based on the above config, User has to select the tax code which is relevent. If the amount falls below 1290823/-, then he needs to give the Tax code "X1,", if it exceeds, Y1.
Hope it helps
Thanks for the quick Response.
But My issue is bit critical. The user wants that the system should calculate the cumulative amount of the vendor as on date internally and if the total amount exceeds the above amount than TDS to be deducted would be 10% else 0.01.
I.E. Suppose the cureent bill to be passed is of RS.50,000 and the previous bill which has already been passed is RS. 1,00,000 than the system should internely calculate the total i.e. 1,00,000+50000 = 1,50,000 which is less than the above said amount so the TDS % would be 0.01%.
I hope I was able to explain the problem.
Thanks & Regards
Om Prakash Gupta
You can achieve this by the following configuration:
1) SPRO->FInancial Accounting(New)->Financila Global Settings(New)->Withholding Tax->Extended Withholding Tax->Calculation->Withholding Tax Code->Define Withholding Tax Codes
Define the withholding tax and maintain the % at normat rate and also put the tick on Withholding Tax formula.
2) SPRO->FInancial Accounting(New)->Financila Global Settings(New)->Withholding Tax->Extended Withholding Tax->Calculation->Withholding Tax Code->Define Formulas for Calculating Withholding Tax
Maintain here Currency,Withholding tax type,Withholding tax code,Withholding tax country and valid from date and save.
Then click on formulas for calculating withholding tax maintain the amount e.g.10000 in 'to base amount 'column and in withholding tax rate maintain your lower rate e.g. 0.01 and then go to 2nd column and maintain the 9999999999 in 'to
base amount' column and full rate e.g. 10%.
I am sure it will resolve your problem.
Thanks for the Reply..
I have already tried the above steps. But it only cosiders the current doccument value. It does not add up the previous Transaction of the Vendor.
My querry is that while posting a voucher the system should take up the current doccument value and should also add up with the previous Transaction amunt of the same fiscal year and if the amount exceeds the said amount the TDS deduction will be the normal one..
Hope I am able to make you understand clearly.
above is possible with below config.
create separeate tax type and tax code (only for this vendor because exemption is relavent only this vendor)
with start month 4 (because Indai)
tax rate is 0
Use the formula's
create a formula based on your desired requirement.
http://wiki.sdn.sap.com/wiki/x/UgTpCw (RUPEE WORD FORMAT)
http://wiki.sdn.sap.com/wiki/x/8oMEDg (J1INEMIS )
http://wiki.sdn.sap.com/wiki/x/2BAMDg (J1INACKN )
http://wiki.sdn.sap.com/wiki/x/6xYODg (J1INREV )