SAP Financial Accounting (FI) Taxes (FI-AP/AR) Calculate Tax Deducted at Source

Use

You use this program to calculate withholding tax on vendor invoices.

It you have already posted a down payment for an invoice and withheld tax on it, the system automatically takes the tax already paid into account.

To access the program, from the SAP Easy Access screen, choose Accounting ® Financial Accounting ® Accounts Payable ® Withholding Tax ® India ® Withholding Tax ® Tax Deduction at Source: Classic.

Prerequisites

You have already entered the invoices and the down payments.

Features

Selection

On the selection screen, enter the following data:

• Run Program in Test Mode

We recommend that you first run the program in test mode, then once you are satisfied with the results, in update mode.

• Process Invoices Only

Select this if you want to post TDS for a specific invoice. It speeds up the response time.

• TDS Date

This is the posting date that the system enters in the TDS document (update mode only).

Output

The system displays a list of invoices and specifies whether there are any down payments to be cleared against them.

Activities

In the output list, you can clear an invoice against a down payment as follows:

1. Position the cursor on the invoice that you want to clear the down payment against and choose .
2. Select the down payment that you want to clear.
3. Save the down payment.

The system:

• Creates an accounting document to clear the down payment and reduce the vendor liability
• Recalculates the withholding tax base amount and the withholding tax amount, based on the amount of the down payment against which the invoice was cleared.

You can also clear invoices against down payments by first taking a list of all the invoices listed above by choosing . You can then clear them by choosing Financial Accounting ® Accounts Payable ® Document Entry ® Down Payment ® Clearing, and then clear each invoice one by one.

By clicking on the document numbers, you can display the document of the TDS posting.

You will have to make a manual FI posting to transfer the amounts from the respective withholding tax accounts (as defined in the withholding tax line items) to the TDS government payable vendor account. To make the payment to the TDS government payable vendor account, from the SAP Easy Access screen, choose Accounting ® Financial Accounting ® Accounts Payable ® Document Entry ® Outgoing Payment ® Post.