Per diem calculation - Taxation

[amit_rajeshbhai]

Hi,

I am need to configur the per diem allowance as below.

till 8 hrs no per diem

8 to 10 hrs per diem 100 Rs. and 60 is taxable.

10 to 24 hrs per deim 100 Rs. and 100 is taxable.

As per my knowledge there is only one amount and tax code can be used.

Can anyone help me on the above requirement?

Thanks

Amit Mistry

[Former Member · Accepted solution]

In T706V you have tax free amount, reimbursement amount and customer amount.

difference between reimbursement amount and and tax free amount can be handled as taxable. For this, you can assign two wage types to per diem expense type.

Customer amount is not processed at all in standard

In your case:

tax free 40

reimbursement 100

--> ends up in 60 taxable

exp.type VERP - wage type 1 MJ20, wage type 2 eg. MJ23 or your customer versions of it.

--> result: 40 on MJ20 tax free, 60 on MJ23 taxable

--> also printed in form etc.

cheers, Michael

[amit_rajeshbhai · Accepted solution]

Hi,

Thanks for your reply.

I have to calculate tax on 60 not on 100. In this case system is calculating tax on 100.

I also dont want to assign tax code at VERP or at global setting becasue this calculate tax on all per diem allowance. This is the special case on which i need to calculate tax on per diem not on full amount but on partial amount (60).

How i can achive this through configuration or through Development?

Thanks

Amit

[Former Member · Accepted solution]

Hi,

"I have to calculate tax on 60 not on 100. In this case system is calculating tax on 100"

--> exactly. that's why you need two wage type assignments. If you have only first wage type maintained, full 100 go to this wage type. If you have two wage types for VERP, 40 go to wage type 1, 60 go to wage type 2. Whether taxable or not is determined by wage type.

See IMG docu of "wage type assignment per expense type for per diems", and also the following line in IMG for "addtional wage type assignemnt for per diem".

You can have this as part of standard config. As an alternative, use BADI TRIP_AFTER_SETTLEMENT changing totals per wage type. Good IMG docu available.

rgds, Michael