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Business Place Vs Section Code

Muralinag14
Active Contributor
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1,038

Hello Friends,

Where to use Business place and Section code?

Which one is for TIN (Tax payer identification number) and which one is for TAN (Tax deduction account number)?

Also let me know the legal requirement to maintain both of them.

Have seen many threads but no one conclude my haunt.

Rgds

Murali. N

Accepted Solutions (1)

Accepted Solutions (1)

pankaj_pandey2
Active Contributor
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Hi Murali

TAN is required for TDS related cycle, it saffice TDS related process in SAP. Authority provides TAN no for deductor, this number is identification for any activity (deduction and deposit) done by deductor.

TDS deducted is deposited under this.

SAP gives Section code options for this process, but we have define business place also, these business place are more like dummy entries as ystem checks these entries first.

TIN is basically for input and output tax.These tax reporting are done thorugh business place.

Business place can be used with plant as well sales office. BP is a reporting tool for tax reporting purpose (esp. VAT).

Hope it will help you.

Regards

Pankaj Pandey

Answers (2)

Answers (2)

Muralinag14
Active Contributor
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Thank you Mani and Pankaj to make me understanding the concepts.

suma_mani
Active Contributor
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Hi Murali

Mentioned consulting note can help us

Note 603325 - Section Code for India - Withholding Tax (Concept Note)

TAN Number assigned to Section code

Regards

Mani Kumar