WITHHOLDING TAX-ECC6.

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1. Check With Holding Tax Countries

Path: - Spro Financial Accounting-New Financial Accounting Global Settings(New)

Withholding TaxExtended Withholding TaxBasic Settings
CheckWithholding
Countries

Process:
Go to New Entries
Give City Description
IN Sales Tax India Save

2.With Holding Tax Keys:

Path: - Spro Financial Accounting-New Financial Accounting Global Settings(New)
Withholding TaxExtended Withholding TaxBasic Settingswith Holding
Tax Keys

Process: Offical Keys are defined

194c,194 J etc keys are created
3.Reasons for Exemption of EWT are defined

4. Define Business Place

Path: - Spro Financial Accounting-New Financial Accounting Global Settings(New)
Withholding TaxExtended Withholding TaxBasic SettingsIndiaDefine
Business Place

Process:Business Place : TP11 –Bus. Place for TP11

In the Address pop up

Give “IT circle IV”

Save

5. Assign Factory Calender

Spro Financial Accounting-New Financial Accounting Global Settings(New)
Withholding TaxExtended Withholding TaxBasic SettingsIndiaAssign
Factory calender

Process:
New Entries

Cocd TP11
Bus Place: TP11
Tax due date: Day before
Save

6. Maintain Tax Due Dates

Spro Financial Accounting-New Financial Accounting Global Settings(New)
Withholding TaxExtended Withholding TaxBasic SettingsIndiaAssign Tax
Due Dates

Process: For all the official Tax Keys due date are defined

IN --194C—CO—777
IN --194C—OT —777

7. Define Section Codes:

Spro Financial Accounting-New Financial Accounting Global Settings(New)
Withholding TaxExtended Withholding TaxBasic SettingsKorea Define
Section Codes
Process:
TP11- TP11
Save

8. Define Withholding Tax Type For Invoice Posting

Path: - SproImgFinancial Accounting (new)Financial Accounting Global

Settings(new)Withholding TaxExtended Withholding Tax
CalculationDefine Withholding Tax Type For Invoice Posting
Process:
Give Country Key In Enter
Go to New Entries

Withholding Tax Type Description

M1 2% IT For Payment Posting

M2 2% Surcharge On I.T For Payment Posting
M3 2% Education Cess On I.T For Payment Posting

Select Gross Amount

Select Withholding Tax Common Rounding
Select Post With Tax Amount
Select No Accumulation
Select with Tax Base Manual
Select Manual Withholding Tax Amount
Select No Certification Numbering
9. Define Withholding Tax Type For Payment Posting

Path: - Spro Img Financial Accounting Financial Accounting Global

SettingsWithholding TaxExtended Withholding TaxCalculation
Define Withholding Tax Type For Payment Posting

Give Country Key In Enter

Go to New Entries

Withholding Tax Type Description

M4 2% IT For Payment Posting

M5 2% Surcharge On I.T For Payment Posting
M6 2% Education Cess On I.T For Payment Posting

Select Gross Amount

Select Withholding Tax Common Rounding
Select Post With Tax Amount
Select No Accumulation
Select with Tax Base Manual
Select Manual Withholding Tax Amount
Select No Certification Numbering Save

10: Define Recipient Types for WHT:

Spro Financial Accounting-New Financial Accounting Global Settings(New)
Withholding TaxExtended Withholding TaxBasic Settings Check Recipient
Types for WHT

Process:
Country Key : IN
11. Define Withholding Tax Codes

Path: - Spro Img Financial AccountingFinancial Accounting Global Settings

Withholding TaxExtended Withholding TaxWithholding Tax Codes
Define Withholding Tax Codes

Give Country Key In

Go to New Entries

Withholding Type Code Description Perse Sub To Tax Posting Indi With
Rate Typ

M1 M1 2% I.T Invoice 100 1 2

M2 M2 2% Surcharge 2 1 2
M3 M3 2% Ed Cess 2 1 2.4
M4 M4 2% I.T Payment 100 1 2
M5 M5 2% Surcharge 2 1 2
M6 M6 2% Ed Cess 2 1 2.4
Do the same way for M2,M3,M4,M5 AND M6
Save
12 Define Portray dependencies between with Holding Tax Types:
- Spro Img Financial Accounting Financial Accounting Global Settings
Withholding Tax Extended Withholding Tax With Holding Tax Base
AmountPortray dependencies between with Holding Tax Types

Process :

Give the IN in country box

13. Define Formulas For Calculating Withholding Tax

Path: - Spro Img Financial AccountingFinancial Accounting Global Settings

Withholding TaxExtended Withholding TaxCalculationWithholding Tax
CodesDefine Formulas For Calculating Withholding Tax
Give Country Key In Enter
Go to New Entries

Currency Withholding Tax Type Tax Code Valid From

INR M1 M1 1.4.2006
INR M2 M2 1.4.2006
INR M3 M3 1.4.2006
INR M4 M4 1.4.2006
INR M5 M5 1.4.2006
INR M6 M6 1.4.2006 Save

Select S1 Double Click On Formulas For Calculating Withholding Tax

System Gives Message Enter
Go to New Entries

Withholding Tax Type To Base Amount Withholding Tax

M1 999999999 2
M2 999999999 2
M3 999999999 2
M4 999999999 2
M5 999999999 2
M6 999999999 2 Save

14 Assign Withholding Tax Types to company codes:

Path: - SproImgFinancial Accounting Financial Accounting Global

Settings
Withholding TaxExtended Withholding TaxCompany Code
Assign Withholding Tax Types To Company Codes.

Go to New Entries
Give Company Code 4455

Withholding Tax Type Withholding Tax Agent Withing Oblted From

Until

M1 Select 1.4.2006 31.3.2006

M2 Select 1.4.2006 31.3.2006
M3 Select 1.4.2006 31.3.2006
M4 Select 1.4.2006 31.3.2006
M5 Select 1.4.2006 31.3.2006
M6 Select 1.4.2006 31.3.2006
Save
15. Active Withholding Tax

Path: - SproImgFinancial Accounting Financial Accounting Global

Settings
Withholding TaxExtended Withholding TaxCompany Code
Activate Extended Withholding Tax

Go to Position
Give Company Code 4455
Select Extended Withholding Tax Check Box Save
System Gives Message Enter

G.L Accounts Creation

TDS
Give G.L Account No. 100403
Give Company Code 4455
Select Create Button
Give Account Group Current Liabilities A/c
Select Balance Sheet A/c
Give Description Short Text TDS A/c
Give General Ledger Long Text Income Tax Payable A/c

Select Control Data Tab

Give Account Currency Inr
Only Balances In Local Currency
Select Open Item
Select Line Item Display
Give Sort Key 001
Select Create Bank Interest Data Tab
Field Status Group G011

Surcharge Account :

Give G.L Account No. 100404

Give Company Code 4455
Select Create Button
Give Account Group Current Liabilities A/c
Select Balance Sheet A/c
Give Description Short Text Surcharge a/c
Give General Ledger Long Text: Surcharge a/c
Select Control Data Tab
Give Account Currency Inr
Only Balances In Local Currency
Select Line Item Display
Give Sort Key 001
Select Create Bank Interest Data Tab
Field Status Group G011(clearing Accounts with settlements)

Give G.L Account No. 100405

Give Company Code 4455
Select Create Button
Give Account Group Current Liabilities A/c
Select Balance Sheet A/c
Give Description Short Text Edu Cess A/c
Give General Ledger Long Text: Edu Cess a/c

Select Control Data Tab

Give Account Currency Inr
Only Balances In Local Currency
Select Line Item Display
Give Sort Key 001
Select Create Bank Interest Data Tab
Field Status Group G011(clearing Accounts with settlements)

16 . Define Accounts for WHT to be Paid overAutomatic Postings

Path: - Spro Img Financial AccountingFinancial Accounting Global Settings

Withholding TaxExtended Withholding TaxPostingsAccounts For
Withholding TaxDefine Accounts For Withholding Tax to be Paid Over

Give Chart of Accounts 4455 Enter

Select Debit/Credit
Select Withholding Tax Code
Select Withholding Tax Type Save

Withholding Tax Type Withholding Tax Code Debit Credit

17. Define Certificate Numbering for WHT

Path: - Spro ImgFinancial AccountingFinancial Accounting Global Settings

Withholding TaxExtended Withholding TaxPostingsCertificate
Numbering for Withholding TaxDefine Number Classes

Process:

Select New Entries

Num Class TEXT

save

18 Assign Numbering Group to Number classes:

Path: - SproImgFinancial Accounting Financial Accounting Global

Settings
Withholding TaxExtended Withholding TaxPostingsCertificate
Numbering for Withholding TaxAssign Numbering Group to Number classes

Process:

Select New Entries

19 Define No Group for Remittance Challans J1INUM

Path: - Spro Img Financial AccountingFinancial Accounting Global Settings

Withholding TaxExtended Withholding TaxPostings India Remittance
Challans Maintain Number groups
Process:

Select New Entries

20 Assign Number Ranges to Number Groups J1INO

Path: - SproImgFinancial AccountingFinancial Accounting Global Settings

Withholding TaxExtended Withholding TaxPostings India Remittance
Challans Assign No Ranges to Number Groups

Process:

No Group: TPR
Internal No :005
We can give any number here
In the next step we will assign it to Maintain No groups .

21 Maintain Number Range J1INUMBER

Path: - Spro  Img Financial AccountingFinancial Accounting Global Settings

Withholding TaxExtended Withholding TaxPostings India Remittance
Challans Maintain No Ranges

Process:

CLICK on the Group Tab

Screen will appear

Select Group icon on the application tool bar
Check the B0x –group under the no range is assigned

Go to Menu –IntervalMaintain
Select Insert and enter the no range.

2006-1-500
save
22 Maintain Number Groups and SAP script Forms J1INCRT
Path: - Spro Img Financial AccountingFinancial Accounting Global Settings
Withholding TaxExtended Withholding TaxPostings India With holding
Tax Certificate Numbers for Vendors and Customers Maintain Number Groups and
SAP script Forms

Process:

23 Assign Number Ranges for Number Groups J1INCTNO

Spro
ImgFinancial AccountingFinancial Accounting Global Settings
Withholding TaxExtended Withholding TaxPostings India With holding
Tax Certificate Numbers for Vendors and Customers Assign Number Ranges for
Number Groups

Process
24 Maintain Number J1INCT

Spro Img Financial AccountingFinancial Accounting Global Settings

Withholding TaxExtended Withholding TaxPostings India With holding
Tax Certificate Numbers for Vendors and Customers Maintain Numbers

Process;
An error message will come at the time of saving the document like no range not
given and automatic accounts are cancelled . Follow the step in Trouble shooting .
and again post F-43 then the docment will be saved

TROUBLE SHOOTING
25 Maintain company code settings
Path: - Spro Img Logistic GeneralTax on Goods MovementIndiaBasic
SettingsMaintain Company Code Settings

Go to New Entries
Give Company Code 4455
CEN Vat Document Type KR FI Document Type SA
Give First Month April Save

26 Assign Number Ranges for Section Codes in Following Tables

1. J_1IEWT_CERT

TC: SE16

Give the TABLE NAME

ENTER
Give the COMPANY CODE
EXECUTE

Check whether Number group is assigned or not for the company code
If not PRESS BACK ARROW TWO TIMES

Press Create button

Press NEW ENTRIES BUTTON

Fill the fields company code, Business place, Off with holding key, Form name and
Number group
SAVE

The same way check for the all the TABLES except 7 and 8

2. J_1IEWT_CERT_N
3. J_1IEWT_CERTN0
4. J_1IEWTNUMGR_N
5. J_1IEWTNUMGR_1
6 J_1IEWT_CERTIF

7. J_1IEWT_CERTIF_N

Under SM30 step 8 should be done

8. J_1ISTATECD

27 Post an Vendor Invoice T Code: F-43

Note the Document No:

28 Create Remittance Challans

Path:
Fill the required fields and press Execute

ENTER

Keep the items in Blue font press back arrow

Double click on bank line item

Remove Rs 1 in Amount column and Give your TDS Amount in the Amount column

Press Save
Note down the Document Number which appears on Status Bar
Press Clearing Doc It will display your posted document

29: Enter BANK CHALLAN

Fill the required fields and press Execute

It Gives Message that Bank Challans are updated

30: Certificate Printing

Enter all the require fields and Press Execute
Give Output Device as LP01
Press Print Preview