EWT CIN question

[Former Member]

Hi ,

I am trying to implement CIN EWT for a company whose fiscal year is from Jan-Dec but for tax reporting the year is from Apr-March. How would you configure this in SAP?

Regards

K.R

[Former Member]

Hi KR,

Would you please elaborate, why Company Code maintained Accounting Year as Jan-Dec where Tax Reporting Year is Apr- Mar.

Just to mention, at EWT level we do not have any option to maintain Fiscal as per our requirement, currently it is at Company code level.

Regards,

Venkat

[Former Member]

Hi Venata,

If your company is a MNC for example they may have a reporting to be done as per their parent Company for FI that need not necessarily drive the tax reporting.

Regards

K.R

[Former Member]

Hi KR,

Let me put my understanding, Client doing business Global level, Parent Company have Accounting Year- Jan- Dec, but one of subsidiary company required FY - Apr-March.

Now days we came across this type of scenarios in global roll outs, we follow this way:

1. If we want same chart of account & FY for all Company codes, then we need to define Local Ledger ( i.e Non-Leading) ledger with different FY. This way we can achieve our local report.

Feel free to add if any best solution to face above scenario or challenges.

Regards,

Venkat

[narasimhulu_konnipati]

Understood your point.

When it comes to Leading and Non-Leading, Leading ledger will be created and assigned for Group which comprises of all the Company codes.

For Local reporting purpose, we use Non-Leading Ledgers.

Here, If 0L ledger is with JAN to DEC and if you want to differentiate your Local books with APRIL to MARCH, create an addiotnal Fiscal year Variant and assign it to your Local Ledger.

Go through SPRO - FA New - FA New GS -> Ledger.........

So, your group comapny Financial statements disclose with Group currency and Local books wth Local currency.

Ex: - US GAAP - JAN to DEC

India GAAP - APRIL to MARCH

But, this will not impact your WHT no where.

Thanks

[narasimhulu_konnipati]

Adding to Venkat's msg,

Yes, WHT is at Company code level, and you need not to maintain any Fiscal year.

Moreover, you will be submitting the TDS to Gove on montlhy basis, so, you can pull out the details from FS10N / FAGLB03 for details from April to March to disclose your financial statements.

There are some good reporrts availabe which you can use.

If it is Indirex taxes part, there might be a requirement.

Thanks

[Former Member]

If you really require and all details are availible for Leading and Non-Leading Ledger for tax then only go for two ledgers. Other wise you can have Jan to Dec as Posting periods with Leading Ledger and details can be get from J1INQEFILE quartery from SAP. Hope this Ok for Income Tax pupose. CIN is used for Excise and EWT is used for Income Tax - Hope you are aware of this... Ramesh