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TCS Configuration Reference Document

This document provides instructions for configuring tax collected at source (TCS) in SAP, including maintaining withholding tax keys and types, assigning them to company codes, defining accounts, and setting up number ranges for remittance challans and TCS certificates. It lists the various menu paths and transaction codes needed to complete the TCS setup in the SAP system.

Uploaded by

Prateek Mohapatra
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© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
245 views

TCS Configuration Reference Document

This document provides instructions for configuring tax collected at source (TCS) in SAP, including maintaining withholding tax keys and types, assigning them to company codes, defining accounts, and setting up number ranges for remittance challans and TCS certificates. It lists the various menu paths and transaction codes needed to complete the TCS setup in the SAP system.

Uploaded by

Prateek Mohapatra
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Tax collected at Source:

Following FI Configurations Is required:

1. Withholding tax key is maintained for TCS as below:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Basic Settings → Define Withholding Tax
Keys
Transaction SPRO
Code
Check Recipient Types:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Basic Settings → Check Recipient Types
Transaction SPRO
Code
Withholding tax types are maintained for TCS on base, surcharge, ECS and SECess as below :

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Calculation → Withholding Tax Type →
Define Withholding Tax Type for Invoice Posting
Transaction SPRO
Code
Withholding tax types are maintained for TCS on base, surcharge, ECS and SECess as below :

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Calculation → Withholding Tax Type →
Define Withholding Tax Type for Invoice Posting
Transaction SPRO
Code
Assign Condition Type(JWTS) to With Holding Tax Type:
Define Processing Key for Modified Net Amount:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Calculation→ Withholding Tax Base
Amount → Define Processing Key for Modified Net Amount
Transaction SPRO
Code
Assign Withholding Tax Types to Company Codes:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Company Code → Assign Withholding
Tax Types to Company Codes
Transaction SPRO
Code
Define Accounts for Withholding To be Paid Over:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Posting→ Accounts for Withholding Tax
→ Define Accounts for Withholding Tax Offsetting To Be Paid
Over
Transaction SPRO
Code
Define Accounts for Withholding Tax Offsetting Entry:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Posting→ Accounts for Withholding Tax
→ Define Accounts for Withholding Tax Offsetting Entry
Transaction OBWO
Code

Maintain Number Groups for Remittance Challan:


Manu Path SPRO → Financial Accounting (New) → Financial Accounting
Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Posting→ India→ Remittance Challans →
Maintain Number Groups
Transaction SPRO
Code
Assign Number Ranges to Number Groups for Remittance Challan creation:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Posting→ India→ Remittance Challans →
Assign Number Ranges to Number Groups
Transaction J1INO
Code
Maintain Number Ranges for Remittance Challan:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Posting→ India→ Remittance Challans →
Maintain Number Ranges
Transaction J1INUMBER
Code
Maintain Number Groups and SAPscript Forms TCS Certificates Printing:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Posting→ India→ Withholding Tax
Certificates for Vendors and Customers→ Maintain Number
Groups and SAPscript Forms
Transaction J1INCRT
Code
Assign Number Ranges to Number Groups for TCS Certificates for Vendors and Customers:

Manu Path SPRO → Financial Accounting (New) → Financial Accounting


Basic Settings (New) → Withholding Tax→ Extended
Withholding Tax → Posting→ India→ Withholding Tax
Certificates for Vendors and Customers→ Assign Number
Ranges to Number Groups
Transaction J1INCTNO
Code
Check and Change Settings for Tax Processing:

Manu Path SPRO → Financial Accounting (New → Financial


Accounting Basic Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check and
Change Settings for Tax Processing
Transaction OBCN
Code
Define Tax Accounts:

Manu Path SPRO → Financial Accounting (New → Financial


Accounting Basic Settings (New) → Tax on
Sales/Purchases → Posting → Define Tax
Accounts
Transaction OB40
Code
Define Tax code for IX (Tax Collected at Source – 1%):

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