on 09-01-2008 11:23 AM
hi all,
How the TDS (with holding tax) process will affect the MM service procurement flow?. Please give an example aslo.please.
Do i need all 3 vendor group to be created in SAP or single account group as Service Provider will do?
1. Contracter (Service provider also use some materials of his own for the service and raise the bill single bill for service and material (with sales tax).
2. Service provider (no tax payable)
3. Service provider (tax payable)
Thanks
Hi,
The witholding tax is calculated depending upon the entry made in the vendor master "Witholding Tax" tab .The sections like 194C,194H,194J,194I etc whatever is entered accordingly the tax will be calculated in the MIRO/Invoice.If no tax is to be deducted than at the time of MIRO the entries can be deselected which will not calculate tax.
Dhruba
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HI,
IF THE VENDOR COMES UNDER TAX DEDUCTION , THEN ONLY THE AMOUNT WILL DEDUCT FROM HIS PAYMENT PURELY DEPEND ON SERVICE NOT ON MATERIALS.THE AMOUNT WILL BE DEPOSITED IN HIS NAME WITH GOVT IT DEPT.SO THERE IS NO [PROBLEM FOR PROCUREMENT PROCESS WITH THIS AS THE AMOUNT DEPOSITED WITH HIS ACCOUNT
FOR SECOND AND ANOTHER QUESTIONS FOR SIMPLIFICATION AND IDENTIFICATION OF VENDORS U CAN MAKE SEPARATE ACCOUNT GROUPS OR NOT DEPEND ON YOUR ORGANIGATIONAL LIMITS
THANKS REGARDS,
SRINIVAS KONA
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Hi,
Same service provider, produce single bill for service and the material used during the service.
For services, service tax to be applied and for material VAT to be applied. At the time Service PO, i dont know, where any material will be used or not?.
After receiving the invoice only we come to know the material cost and VAT?.
thanks.
you should two vendor groups i.e one for contractors . other for service provider. if tax is zero select input tax 0 in po.
regards
points if helpful/solved
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