Print Certificate

Next we’ll see how to print a certificate. Now here for printing a certificate we need to use a transaction code called J1INCHLN, Now here this is the SAP menu path for India.

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Here, we’ll go to India then under that, we’ll go to extended withholding tax. Under that, we have option of certificates where first we’ll print the certificate using a transaction code J1INCERT. Now here, once you enter the transaction code, you’ll get a screen where you have to provide the certification details and the document details, and rest is the company code details followed by the fiscal year.

So for the certificate details you need to provide the certificate date the signature and the designation and also you have to mention the place of printing. Now once you click on the Execute button after providing these details you get a screen where you have to provide the output device detail.

So here we provide the output device as LP01 and we’ll click on the print preview button so once we click on the print preview button we’ll get the print preview for that particular certificate.

So this is how we print the certificates in SAP FICO.

 

Next we’ll see how to do a quarterly return. Now quarterly return may be of a payslip or quarterly return of any transaction for a particular employee. So here we’ll use a transaction code called J1INQEFILE that is quarterly return file. This is the screen which we get. So this is quarterly TDS returns. TDS is the tax.

So here we’ll calculate the TDS returns for India. So here we’ll have the screen which displays the quarterly returns for company code India. So here the company code is 1000 and we have to define the withholding tax data like the section code and TDS section details. Now here we have the tabs called address details responsible person address and output processing options, so we have to fill these details for that particular TDS returns. After providing these details once we click on the Execute button we’ll have a detailed description of that particular TDS returns for India so here it will give all the details related to the document number and the withholding tax amount which resides besides that particular document number.

Now here under this quarterly returns we have something called as TDS Reports. Now let us see what is a TDS report. Here, we’ll execute a transaction code called J1INMIS with the details as shown in the adjacent screen. Here, the date should be for a quarter that is for 6 months or we can say for 3 months depending upon the company zone for which EDS returns needs to be filled.

Here executing this session will give a display of all the invoices covered under that entered section code.

So here, we’ll use that J1INMIS transaction code, and we’ll get a detailed description of the tax information, and it will have all the invoices, that’s the document numbers for that particular tax section. So here we’ll have all the documents details related to that particular invoice. And after that, we’ll select those particular invoice which is required, and we’ll click on the execute button.

Next, we’ll see what is a TDS for concessional rate of tax. Now let us see how do we do that. Here, set up TDS at lower rates. Now for doing that, we’ll use a transaction code called XK02, which is a vendor master transaction code. For changing that vendor data, we’ll have to use a transaction code and go to withholding tax, that is the tab where it contains the information about the TDS. So this is the screen which we’ll get once we enter the transaction code XK02, and we’ll go to withholding tax tab.

Now here we’ll have to mention the percentage for the reduction of the TDS. So here, we’ll mention the exemption percentage for reduction of the TDS. And after that, we’ll save these entries, which we have maintained for that particular vendor. So this is how we do the concessional rate of tax that is we have given the concession rate to that particular TDS.

Now here we have an example where it shows how the concessional rate of TDS is calculated. Now suppose we’ll assume that we have a TDS rate of 10%. Now out of 100%, 10% is TDS rate, that is that 10% of tax will be deducted from our amount.

Now here we have got a concession certificate of 2%. So total we have 2% concession certificate. Hence, he has got the rebate of 80% from the original rate of TDS. So mention the 80% in the rate percentage column. So here we have 10% as a TDS and the remaining amount, which has been rated for the original rate percentage column. Now here we don’t put the concessional rate of TDS that is 2% along with that 80%. Here we’ll do the normal invoicing or the payment system will deduct the TDS, and we’ll reduce the rates. So this is how we do the concession rates for TDS, and we’ll mention the TDS rate in the certificates or we can say in the documents. So this is the concessional rate of TDS.

 

Next, we have something called as service tax. Now we have different types of taxes like income tax service tax wealth tax so here we’ll learn about service tax in SAP finance. Now first we’ll see how to create a tax code, now in order to give the details of a service tax, we have something called as tax code. Here, the transaction code is FTXP. Remember the tax code varies from companies to company that is different for each company codes. Now first is FTXP. This is the screen for tax code.

Now here, we’ll have to specify the country code. As I’ve mentioned that it varies from companies to companies. So here we have country as IN, that is India, and then we’ll have to provide a 2 digit tax code. So here we’ll maintain the 2 digit tax code as KJ. After that when we press enter we have to provide some values like tax type that is we’ll put V for input tax and A for output tax.

So here we’ll maintain the properties of tax type. So here tax code is KJ. that is service tax, and we’ll have to maintain the tax type, that is the input tax for that particular tax code. Now here a tax code KJ has been created. The nature of tax type is V as it is input tax. As service tax has a concept of movement of amount of from interim account to the final account, so we have defined for example purpose KJ as its interim account that is the initial account and KK as its target account that is the final account so we have KJ and KK as its first and the final account and we have put as input tax V then we’ll click on this continue button after that we’ll get a screen that is tax rate screen.

Now here it has given the tax types that that is we have different types of taxes to be reduced from our salary or we can say from the payment which we get.

And we have the accounts, the tax percentage rate, and the level. So here we have from level and two levels, and we have condition types for this particular tax rates. Now here, once we press enter, we’ll get a message stating that tax code KJ was created. Now here we need not have to maintain anything in the above screen. Just we have to click on the save button.

So once we click on the save button, we’ll get a screen with a window message stating that tax code KJ was created, that is the final tax has been created.

 

Now here for maintaining the percentage rates for each component of tax, we need to go with the tax transaction code FV11. For service tax, we have to use JSRT condition type and XSMX1 for service tax base. So here, we’ll use a transaction code called FV11, and we are calculating service tax. So we’ll use the condition type as JSRT, and we’ll use SMX1 for service tax base.

So here we’ll provide the condition type which we want to maintain, and then we’ll press enter. So once we press enter, it will give the display of the records that is the overview of the records.

So here we’ll provide the values like condition type from KJ and KK, and we’ll provide the amount to that and value from a value to that. After this, we’ll we press enter. Now those settings are maintained for service tax based on the condition types. Now after creation each tax code for input we need to assign the company code. So initially, we have created each tax code for the inputs that is KJ and KK. Now after that, we need to assign a company code to that. So here we’ll go to transaction code SPRO under that we’ll go to logistics tabs, then we’ll go to tax on goods movements, then we’ll go to our zone that is India in which we have basic settings tab.

Under that, we have determination of excise duty, and then we have condition based excise determination. So there we’ll go to execute assign tax codes to company codes. So once we click that, we’ll get a screen where we have to assign tax codes to company code.

So here we have company code as 1,000, and we have tax codes as KK and KJ that is the initial tax code and the final tax code. Now here in expense general ledger account need to put the plus sign and the negative sign for income GL that is general ledger or we’ll put star mark capturing both the tax codes. So here we have various material tax codes which are created in the SAP system.

So this is how we assign tax codes to the company codes. Now here we have some tax codes which are used for different company codes. These are the descriptions of the tax codes. Now here we have used tax code that is KK and KJ. So next we’ll see what a service tax process is.