Tax collected at Source: Configurations required 1.

Withholding tax key is maintained for TCS as below

. Withholding tax ty!es are maintained for TCS on base" surcharge" #CS and S#Cess as below

Since this withholding tax is configured with $ase amount as %odified net amount" the base for the withholding tax will be the net amount &i.e." not inclusi'e of the tax condition 'alues.( )n case you wish to add some tax condition 'alues to the base for TCS calculation" you will need to maintain the !osting key assigned to the tax condition ty!e in the !ricing !rocedure along with the combination of the withholding tax code assigned to the TCS related condition ty!e at the following location: S*+, -. /inancial 0ccounting &1ew( -. /inancial 0ccounting 2lobal Settings &1ew( -. #xtended Withholding Tax -. Withholding Tax $ase 0mount -. 3efine !rocessing key for %odified 1et 0mount $y doing so" the condition 'alues of the tax condition ty!es assigned for these !rocessing keys will also be included in the base for the withholding tax calculation.

4. Create the access sequence for withholding tax for TCS in S3 Co!y the existing access sequence 510W and create the new access sequence 51)W with the following accesses:

6. Create condition ty!es corres!onding to Tax collected at Source in S3

7. Withholding tax ty!es must be assigned to condition ty!es maintained in S3 for TCS

8. 3efine Withholding tax codes for TCS as gi'en below

Set the withholding tax rate as !er requirement here.

9. Since !osting will ha!!en from S3 as well as from /) with the T3S code" offsetting conce!t !osting is used for the TCS tax ty!es. The 2: accounts are assigned as below

1ote: Same 2;: account should be maintained for transaction key W)T based tax line item and the S3-/) condition based tax line item. 0 different 2;: account has to be maintained for the transaction key ,// based line item. <. *ricing !rocedure changes. The condition ty!es corres!onding to TCS will ha'e to be adding to the !ricing !rocedure as shown below

The condition ty!es for TCS &5TCS" 5T#C 013 5TS#( are to be defined as statistical in the !ricing !rocedure. The system calculates the 'alues in S3 but doesn=t !ost them directly from S3. *osting would take !lace with the condition ty!e assignment to TCS withholding tax ty!es. &as configured earlier in ste! 7( >. We will need to define a new condition ty!e and add this to the !ricing !rocedure to !ost to the /). This condition ty!e will be manual and can be manually filled at the time of creation of sales order. This can also be co!ied from the statistical TCS condition ty!es in the !ricing !rocedure. /or exam!le" the screen shot below shows how to create the condition ty!e corres!onding to TCS which would be !osted to /):

This condition ty!e 5WTS will ha'e to be added to the !ricing !rocedure. This is not maintained as statistical and has a corres!onding accounting key

Similar condition ty!es will ha'e to be created and added to the !ricing !rocedure for #CS on TCS and S#Cess on TCS.

1?. The accounts for withholding tax to be !aid must be maintained for the TCS withholding tax ty!e and TCS withholding tax code combination as gi'en below -