Configuration of TCS

1,184 views
1,008 views

Published on

TCS - Meaning and configuration

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,184
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Configuration of TCS

  1. 1. Configuration of TCS By: Rajeev KumarWhat is TCS?Answer: The seller has to collect tax from the payer who has purchased the following items: Alcoholic liquor for human consumption Tendu leaves Timber obtained under a forest lease Timber obtained by any mode other than under a forest lease Any other forest produce not being timber or Tendu leaves Scrap Parking lot Toll plaza Mining and quarryingRequired Configuration: Define Withholding Tax key (206C) Define Withholding Tax type Create the access sequence for withholding for TCS in SD. (Copy the existing access sequence J1AW and create the new access sequence) Create condition types corresponding to Tax collected at Source in SD Assign withholding tax types to SD condition types Define withholding tax codes Assign GL accounts for withholding tax types Add TCS conditions in pricing procedure. (Assign TCS conditions in pricing procedure as a statistical conditions) We will need to define a new condition type and add this to the pricing procedure to post to the FI. This condition type will be manual and can be manually filled at the time of creation of sales order. This can also be copied from the statistical TCS condition types in the pricing procedureTo calculate and report tax collected at source, make the following settings (all under countrykey IN):Customizing Settings1.Financial Accounting (New) Financial Create official withholding tax key 206CAccounting Global Settings (New) WithholdingTax Extended Withholding Tax BasicSettings Define Withholding Tax Keys 1
  2. 2. Configuration of TCS By: Rajeev Kumar2.Financial Accounting (New) Financial Create withholding tax type S1 with the name TaxAccounting Global Settings (New) Withholding Collected at Source-Base and make the followingTax Extended Withholding Tax settings: Calculation Withholding Tax Type Define - Base amount = Modif. net amountWithholding Tax Type for Invoice Posting - Rounding rule = Round w/tax amnt up - Select Post w/tax amount checkbox - Accumulation type = No accumulation - Control data = select checkboxes W/tax base manual, Manual w/tax amnt, and No cert. numbering Similarly create withholding tax types S2, S3, and S4 with the names Tax Collected at Source- Surcharge, Tax Collected at Source-Education Cess, and Tax Collected at Source-SECESS respectively and make settings as stated above.3.Sales and Distribution Basic Functions Copy the existing access sequence J1AW and create Pricing Pricing Control Define Access a new access sequence J1IW with theSequences (choose Maintain Access name Withholding tax code - country-specific andSequences) make the following settings: - Access sequence-Access number = 10 - Condition table = 3994.Sales and Distribution Basic Functions Create condition type JTCS with the name TCS- Pricing Pricing Control Define Condition Base and make the following settings:Types (choose Maintain Condition Types) - Access sequence = J1IW - Cond. class = W - Calculat. type = A - Cond. category = D - Select Item Condition checkbox Similarly create condition types JTEC and JTSE with the names ECS on TCS and SECess on TCS respectively and make settings as stated above.5.Financial Accounting (New) Financial Assign condition types JTCS, JTEC, and JTSE toAccounting Global Settings (New) Withholding withholding tax types S1, S3, and S4 respectively.Tax Extended Withholding Tax Calculation Withholding Tax Type AssignCondition Type to Withholding Tax Type6.Financial Accounting (New) Financial Create withholding tax code S1 with name TCS-BaseAccounting Global Settings (New) Withholding and make the following settings:Tax Extended Withholding Tax - Off. W/Tax Key = 206C Calculation Withholding Tax Code Define - Post.indic. = 3Withholding Tax Codes Similarly create withholding tax codes S3 and S4 with the names Education cess on TCS and SECess on TCS and make settings as stated above. 2
  3. 3. Configuration of TCS By: Rajeev Kumar7.Financial Accounting (New) Financial Enter the chart of accounts CAIN. You need to maintainAccounting Global Settings (New) the same G/L account for the transaction key WIT-basedWithholding Tax Extended Withholding tax line items and SD-FI condition based tax line items.Tax Posting Accounts for Withholding Maintain a separate G/L account for the transaction keyTax Define Accounts for Withholding Tax to OFF-based line items.be Paid Over Since posting of TCS happens on both SD and FI documents, ensure that you assign the same G/L account for each combination of withholding tax type and withholding tax code. NOTE To post tax collected at source for Sales and Distribution documents, maintain the same G/L account in Customizing forSales and Distribution, by choosing Basic Functions Account Assignment/Costing Revenue Account Determination Assign G/L Accounts .8.Sales and Distribution Basic Functions Select the pricing procedure JINFAC and double- Free Goods Control Free goods Pricing click Control data. The system displays the Control Maintain Pricing Procedure For Pricing data screen. Define the condition types JTCS, JTEC, and JTSE and add them to the pricing procedure JINFAC. The system calculates the values of the goods but does not post them directly to the Sales and Distribution document (SD). Instead, posting takes place based on the assignment of condition types to the withholding tax types (refer step 5).9.Sales and Distribution Basic Functions Create a new condition type JWTS to post TCS Pricing Pricing Control Define Condition to Financial Accounting (FI) documents. Add thisTypes (choose Maintain Condition Types) condition type to the pricing procedure JINFAC. Similarly create condition types JETS for ECS on TCS and JSTS for SECess on TCS and add them to the pricing procedure JINFAC. 3

×