TCS condition type as Withholding Tax condition type

[Former Member]

Dear All,

In CIN configuration, our customer wants us to create TCS (Tax collected at source) condition type as a Withholding tax for Scrap sales scenario.

Is it possible to create TCS condition type as Withholding condition type.

Because, in the customer master, there is no fields are available to maintain withholding tax informations.

Kindly advice.

Regards,

Mullairaja

[Former Member]

Dear Lakshmipathi,

Thanks for the clarification. I thought withholding concept itself is not applicable for Sales. I thought withholding tax is applicable only for purchases.

Thats why we are arguing with our client. But they asked us to configure in this way.

But please confirm whether withholding tax is applicable for sales? If yes, where we should maintain withholding tax related information in the Customer master?

Please clarify.

Regards,

Mullairaja

Edited by: MullaiRaja on Mar 18, 2011 4:38 PM

[Former Member]

Hi,

Withholding tax is applicable to customer for TCS related sales.

When you are mapping the wht from sales you need to attach it to FI wht type in the path-

SAP Customizing Implementation Guide > Financial Accounting (New) > Financial Accounting Global Settings (New) > Withholding Tax > Extended Withholding Tax > Calculation > Withholding Tax Type > Assign Condition Type to Withholding Tax Type

Also in customer master WHT tax data is to be filled in company code data. Information required is wht tyoe, wht code, tick for wht applicable.

Regards

Milind

[Former Member]

Dear Raja,

Do configuration as mentioned in SAP Note 1168591 and implement code corrections.

Please revert if you need more clarity,

br,

vgl

[Former Member]

Hi Raja,

Do one thisng, Create one new condition typeZTCS for TCS (with condttion Cond. class A Discount or surchaand and Calculat.type A Percentage) and add this condition type in your scrap sale pricing procedure below the total value and maintain the from and to as total value step no. for condition type ZTCS, and maintain condition records for this ZTCS 2%.. check with your business and confirm

Thanks

Rao

[Lakshmipathi]

Can you please let me know the process what exactly you were trying to configure as the statement what you had indicated is WRONG.

You should be aware the difference between TCS and Withholding Tax. TCS is you add some value to sale value when you do scrap sales. That is if sale value is Rs.100/-, you add Rs.2/- as TCS and so the total billing value would be Rs.102/-. Whereas, in case of Withholding Tax, you generate invoice for Rs.100/- but customer deducts Rs.2/- and pay only Rs.98/-.

Both are a different scenario from SAP point of view.

thanks

G. Lakshmipathi