on 01-22-2014 4:20 AM
Hello Experts,
As per Circular Number 1/2014 dated 13.01.2014, amount of Service Tax should be excluded at the time of calculation of TDS on Vendor Invoice. However, Circular is silent about Excise And VAT charged by Vendor. Hence, TDS should get calculated on Basic Invoice amount + VAT & Excise if any and Service tax should be excluded.
Is there any solution? Is there any configuration?
Thanks in advnce.
Kavita Ranade
Hi Kavitha
Please go through the below link it may help you
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Hello,
Well, I am not fimilar to TDS in India.
Have you already asked SAP.
Legal requirements concerning Vat are supported by SAP.
I have not found an up to date SAP notes concerning this issue.
br erwin
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Hi Kavita,
Did u get any solution for the issue? Pls share.
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Hi Ramnik,
You need to do step one in calculation in SPRO
If you set this indicator, the modified net amount is used as the base amount for calculating the withholding tax.
Modified means that the additional amount is added to the net amount. This additional amount consists of the tax amount and is determined by one or more transaction keys that you define in your Customizing settings for the withholding tax base amount.
so you need to add those tax keys which you are assigned in input tax code in FTXP
you can get those from table T030K.
from all tax keys please remove service tax related tax keys and map balance as below for required TDS tax code (If you are using same tax key for service tax & other taxes; you need to create Z tax key for service tax than map that to condition type, "In my case it was NVV & condition type JSV2")
2. Withholding Tax Base Amount--Define Processing Key for Modified Net Amount-- maintain withholding tax type & Internal processing key for which you need to deduct withholding tax
now you are calculating TDS on (net amount + tax keys mapped with TDS code) in above transaction.
Hi Kavita,
1.Defining Withholding Tax Type for ECESS at Invoice Posting--change withholding tax base amount to "Modif. net amount".
2.Withholding Tax Base Amount--Define Processing Key for Modified Net Amount-- maintain withholding tax type & Internal processing key for which you need to deduct withholding tax
Note: you can find tax keys used in FTXP named as Acct Key
waiting for points.
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