Note for TDS (WHT) deduction at 20% for Vendor with No PAN

[Former Member]

Hello Experts

As per Indian Income Tax law, if my service vendor is not having PAN (in its vendor master), then TDS should be deducted at 20%.

There is some SAP Note which we need to apply to activate this functionality. Once we apply this note, system will only allow deduction of TDS at 20%, for the vendors who does not have PAN.

Please let me know, the SAP Note number for the same.

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MG

[Former Member]

Note 1446746 - 20% tax rate is applicable if PAN is not available.

Please tell me, if I need to do some manual correction for the same? or it readily available in SAP6.0, EHP5.

[Former Member]

Please tell me, if I need to do some manual correction for the same (as mentioned in SAP Note 1446746)? or it readily available in SAP6.0, EHP5.

[Former Member]

Hi Meena,

Go ahead and apply the note . You can see that the note has few manual corrections,

Do the same,  and also you can find two attachments, follow the steps mentioned in that and then proceed to apply the note.

Regards,

Anushya

[m_madhu]

HI Meena Goyal,

Regarding PAN validation please apply the below notes and those notes will resolve all your

issues.

1446746 23 48 20% tax rate is applicable if PAN is not available.

1454115 2 24 PAN Validation check only for documents posted after 1st Apr

1454242 1 27 PAN availability check-Partner/Cust process module is active

1454725 1 39 Pan Validation additional corrections

1455092 2 39 Payment transaction should not check the PAN

1459998 2 48 PAN Not available correction for CIN 4.0 release

1460058 2 24 PAN check not happening for MIRO.

1462596 2 24 For Downpayment request PAN should be checked

1466374 3 40 PAN Check for Customer should happen only if WHT is there.

1472171 4 38 PAN check is not called while posting parked documents

1512388 1 28 PAN Validation for one time customer/vendor

1563817 1 40 PAN Check is not happening if Multiple vendor line exists

1582479 2 49 TDS PAN check :not working in case of installment Pay terms

1595017 3 47 PAN Check is not happeing for Customer invoice

1598710 2 38 PAN CHECK- For documents with external number range.

1733624 4 39 While posting FI documents, PAN valdiity is not checked.

1805005 3 37 PAN check is happening for 0 tax rate in Downpayment Request

1818436 2 25 PAN number should not be checked for customer invoices

1905108 1 38 PAN check happening for incorrect documents

above all notes cover all PAN issues.

please refer the each and every note solution part for manual steps.

Regards

Madhu M

[Former Member]

Hi Experts,

Thanks for reply. Since I am on SAP EHP6, do I need to manually apply (through ABAP) SAP note number: 1446746.

I believe that this not is readily applied and available in EHP6.

Please let me know.

[m_madhu]

HI Meena Goyal,

If you are EHP6 then no need to apply the note no 1446746 and it is already avilable in system.

Regards

Madhu M