Hierarchy
SAP_APPL (Software Component) Logistics and Accounting⤷
FI-LOC (Application Component) Localization⤷
J1IN (Package) India
IMG Activity
| ID | SIMG_CFORFBT059V_IN | Define Exemption Reasons |
| Transaction Code | S_EB5_05000389 | (empty) |
| Created on | 20090805 | |
| Customizing Attributes | EWTMN | Extended Withholding Tax, Mandatory, Noncritical |
| Customizing Activity | SIMG_CFORFBT059V | Define Reasons for Exemption |
Document
| Document Class | SIMG | Hypertext: Object Class - Class to which a document belongs. |
| Document Name | SIMG_CFORFBT059V_IN |
Use
In this and the following IMG activities, you define withholding tax codes that you use to post the following invoice items and payment items under Sections 194 A, 197, and 197 A of the Income Tax Act:
- Items subject to a reduced rate of withholding tax
- Items that are exempt from withholding tax
When you come to prepare a TDS return, the return shows how many rupees' worth of business you taxed at a reduced rate and how much was exempt from tax.
For details of how these IMG activities work, see the example below.
Requirements
- You have defined withholding tax types and defined withholding tax codes for calculating tax at the reduced rates and for withholding tax exemptions.
- You have assigned them to your customer masters and vendor masters.
Activities
In this IMG activity, you create the following exemption reasons:
Reason Section Explanation Legal status
AC 194 A (3) (iii) Interest is less than INR 2,500 Legal person
BC 194 A (3) (i) Financial institutions Legal person
CC 197 A (1A) Exemption certificate holders Legal person
AO 194 A (3) (iii) Interest is less than INR 2,500 Natural person
BO 194 A (3) (i) Financial institutions Natural person
CO 197 (A1) Exemption certificate holders Natural person
Example
This example shows how the following IMG activities work together. Assume that you want to record items that are exempt from tax under Section 197 A. You proceed as follows:
IMG Activity What to Do
Define Exemption Reasons Define the exemption reason for legal persons listed under "Activities" above, CC.
Classify Exemption Reasons Assign the exemption reason to Section 197 A.
Assign Exemption Reasons to Withholding Tax Codes Assign the exemption reason to the withholding tax code that you use for transactions exempt from Section 197 A taxes.
Requirements
Standard settings
Activities
Example
Business Attributes
| ASAP Roadmap ID | 204 | Establish Functions and Processes |
| Mandatory / Optional | 1 | Mandatory activity |
| Critical / Non-Critical | 2 | Non-critical |
| Country-Dependency | A | Valid for all countries |
Maintenance Objects
| Maintenance object type | C | Customizing Object |
| Assigned objects | ||||||
|---|---|---|---|---|---|---|
| Customizing Object | Object Type | Transaction Code | Sub-object | Do not Summarize | Skip Subset Dialog Box | Description for multiple selections |
| V_T059V | V - View | SM30 | 0000000000 | Define Reasons for Exemption |
History
| Last changed by/on | SAP | 20090807 |
| SAP Release Created in | 605 |
