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WHT Tax codes validity period

former_member193801
Participant
0 Kudos

Dear Gurus,

My query here is, I have a WITHHOLDING TAX CODES AND WITHHOLDING TAX TYPES as follows:

AB & AB with validity period of 01.04.2009 and TAX Rate as: 10%

Know when I want to change the TAX rate to 5% with validity start date as: 01.06.2016.

I can go and change the Validity Period and TAX Rate Percentage from 10% to 5%.

But the concern here is I have some pending documents which I need to post before: 01.06.2016 and the system should pick 10%.

But I don't have the feasibility of configuring the same for the WHT tax codes.

Please guide me.

BR

RR.

Accepted Solutions (1)

Accepted Solutions (1)

former_member198650
Active Contributor
0 Kudos

Hi Rohit,

You can use old TDS code with revised rate. For that select the w.h.tax formula and keep blank the rate in w.h.tax code configuration. After that maintain the w.h.tax formula with validity 01.04.2009 with the rate 10%. Later add one more item with validity 01.06.2016 with rate 5%. When you make posting from 01.06.2016 the revised rate will pick and for old posting it will pick 10%.

Regards,

Mukthar

former_member193801
Participant
0 Kudos

Dear Mukthar,

Thanks for your Inputs, are you referring to the define formulas for calculating withholding tax Config step.

former_member198650
Active Contributor
0 Kudos

Hi Rohit,

Yes, it is.

former_member193801
Participant
0 Kudos

Dear Mukthar,

could you explain in detail I am confused here.

Regards,

RR

former_member198650
Active Contributor
0 Kudos

Hi Rohit,

After selecting the check box w.h.formula in the w.h.tax code configuration, maintain the details in the formula configuration as shown below:

former_member193801
Participant
0 Kudos

Dear Mukthar Sir,

It is not working. I have a configuration issue here that is what should be the Assign withholding tax types to company codes here we don't have the feasibility of duplicating the same.

former_member198650
Active Contributor
0 Kudos

Hi Rohit,

Here you have to maintain the validity form 01.04.2009 to 31.12.9999. No need to change this configuration settings. What ever changes will do regarding limit or rates in the formula only.

Regards,

Mukthar

former_member193801
Participant
0 Kudos

Dear Mukthar Sir,

Do we need to change in the define withholding tax codes --- calculation --- Withholding Tax rate.

Please clarify sir.

Regards,

RR.

former_member198650
Active Contributor
0 Kudos

Hi Rohit,

You have to maintain the settings for w.h.tax code as per attached screen shot.

Regards,

Mukthar

former_member193801
Participant
0 Kudos

Dear Mukthar Sir,

As per your suggestion do we need to delete the withholding tax rate in the old WHT tax codes.

Regards,

RR

former_member198650
Active Contributor
0 Kudos

Hi Rohit,

If you have maintained the rate in the w.h.tax code configuration, then you delete it as shown in the screen shot.

Regards,

Mukthar

former_member193801
Participant
0 Kudos

Dear Mukthar Sir,

I have taken out the Withholding tax Code --- withholding tax rate -- even then system is not calculating as per our requirements.

Please check the below config steps which we have followed:

1) Define withholding Tax Code --- Taken off the with holding tax rate maintained initially

2) define Formula for calculating withholding Tax ---- Created  the  WHtax code with New validity and percentage rate as 5%

Please let me know if any config is missed ..

BR

RR

former_member198650
Active Contributor
0 Kudos

Hi Rohit,

Check the posting date of the document, it should be 01.06.2016, if you have maintained new validity from 01.06.2016. And also share screen shots of configuration done.

Regards,

Mukthar

former_member193801
Participant
0 Kudos

Dear Mukthar Sir,

Please find the screen shot for the same.

former_member198650
Active Contributor
0 Kudos

Hi Rohit,

In the assignment of w.h.tax type co.code configuration, maintain the validity from 01.04.2009 instead of 01.06.2016. As per accounting entry the tds is calculating @5%, is it right? If not, then share screen shots of inside of w.h.tax formula i.e.select the tax type and click on formula for w.h.tax .

Regards,

Mukthar

former_member193801
Participant
0 Kudos

Dear Mukthar Sir,

Thanks for your valuable suggestion and inputs, It not only solved my problem, it helped to understand how sap functions.

Regards,

RR

Answers (2)

Answers (2)

ankit_agarwal8
Contributor
0 Kudos

Hi Rohit,

I think you are talking about changes in section 194H. We have also created new TDS code for this because of old documents.

Regards,

Ankit

sanilbhandari
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi Rohit

If it is a new rate, it is always advisable to create a new tax code rather than using the same with a change of rate.

Regards


Sanil Bhandari