TDS/TCS rate change

[former_member657272]

Dear Team,

As per India govt guideline the TDS and TCS rate has been changed.

can we change the rate in existing Key OR We need to create new key with revised rate.

Please suggest

[Former Member · Accepted solution]

Hi Sani,

This will be based upon the customer requirement you can do, but the suggestable option is to create a new key.

but there is another way also where you can define the formulas for WHT

Path:

Financial Accounting- Financial accounting global settings-Withholding Tax-Extended Withholding tax-Calculation-Withholding tax code-Define formulas for calculating withholding tax(Here you can define you withholding tax type with Withholding tax code and mention the Valid from date as well from when it is required.

Next in Formulaes you can mention what is your reduction rate.

BR

Repakula Manoj

[former_member681006]

I am using formula calculation method for India.... but i am not able to calculate the TCS rates from this while posting from FB70. Is there any other process to calculate TCS through formula

Please do the needful.

[eseycat4]

Hi, Repakula,

We was using formulas for calculating withholding tax solution as well. It works fine in test environment, and suddenly it not works in production system. We raised OSS to sap, but sap told us we cannot use formula calculation method for India.... 😞 Instead, SAP suggests to create all new WHT codes.

Following is the note number for reference.

2925854 - Reduction in TDS and TCS rates by 25% from the existing due to the COVID-19 pandemic

Best regards,

Emily Wang