Tax Collected at source for Scrap sales in India

[Former Member]

Hi Experts,

We are implementing the scrap sales process to our client. So we need to configure the "tax collected at source" process. We have configured the following steps as per the OSS Note specified for TCS:

1. Define Withholding Tax key (206C)

2. Define Withholding Tax type

3. Create the access sequence for withholding for TCS in SD

(Copy the existing access sequence J1AW and create the new access sequence)

4. Create condition types corresponding to Tax collected at Source in SD

5. Assign withholding tax types to SD condition types

6. Define withholding tax codes

7. Assign GL accounts for withholding tax types

8. Add TCS conditions in pricing procedure

9. creating non statistical new condition types and added them to the SD pricing procedure.

10.Create the account keys for non statistical condition types and assign them in the pricing procedure.

11. assign the G/L accounts for the new account keys in VKOA.

after this when we try to post the invoice we get the error as "posting keys are missing for the transaction ZTC" (ZTC is our account key).

To solve this error we have made the configuration for this account key in OBCN and then in OB40. So the previous error was resolved.

But after that we are getting the error as tax code is not defined in ZTAXIN procedure.

Please guide us how to resolve this issue and also suggest us how to post the values in to the Withholding tax related GL accounts.

Any help will be greatly appreciated.

Thanks & regards

Nag

[Lakshmipathi · Accepted solution]

Check for that TCS condition type, in VK11, the required tax code is assigned.

thanks

G. Lakshmipathi

[Former Member]

Dear Experts,

THanks for your feedback.

Just for your information we are using the calculation procedure ZTAXIN (Copy of TAXINN). In this scenario, for example we are using the Tax code as "A0". This tax code is already assigned in the VK11 against TCS COndition type JTCS as per OSS Note.

But after that also we are facing this issue. Due to this the Accounting entry in SD also not getting posted nor in Withholding tax related GL accounts also.

ALso please suggest us how to get the TCS Certificate

Warm REgards,

Nag