Tax Deducted at Source (SAP Library

Tax Deducted at Source

Use

Country Version India (CIN) offers you two solutions for handling tax deducted at source (TDS), also known as withholding tax. You can either use the Classic TDS solution, which was available in previous releases of CIN, or you can use the CIN solution that is based on the Extended Withholding Tax functions from the standard system.

If you are installing the SAP System for the first time, we recommend that you use the CIN solution based Extended Withholding Tax, as the Classic TDS solution may be discontinued in the future.

Before you decide one way or the other, however, you must give careful consideration as to whether Extended Withholding Tax covers your requirements. If you start working with this solution and it transpires that it does not cover your needs, SAP does not offer a strategy for migrating to Classic TDS.

Features

CIN allows you to:

Withhold tax at the time of invoicing, but also, in the case of goods receipts and down payments, prior to invoicing
Withhold tax on interest payments to customers
Set off any taxes that you have withheld prior to invoicing (for example, on down payments) when you create invoices
Remit taxes using challans
Generate withholding tax certificates for your vendors and customers
Prepare annual returns (Classic TDS and Extended Withholding Tax)