Creation of Remittance Challans (SAP Library

Creation of Remittance Challans

Use

You use these programs to clear the tax line items of your vendors or customers that are ready to be remitted (for more background information, see Determination of Tax Due Date).

Prerequisites

You have made the Customizing settings in the CIN Implementation Guide (IMG) under Tax Deducted at Source ® Extended Withholding Tax ® Creation of Remittance Challans.

Because the programs select the open tax items by document number, you must also have set the document number field (BELNR) as one of the first five selection criteria for processing open items. You do so in the standard IMG, in Customizing for Financial Accounting (FI), by choosing General Ledger Accounting ® Business Transactions ® Open Item Clearing ® Check Settings for Processing Open Items ® Choose Selection Fields.

If you have posted withholding tax items using tax codes other than posting indicator 1 (Standard posting: bank/vendor/customer line item reduced), the programs only read the first tax line. You can make these settings in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Calculation ® Withholding Tax Codes.

Before you remit your withholding tax, you must also have:

Calculated any withholding tax on any clearing accounts affected

Cleared this tax for any invoices that the vendor has since submitted

Features

To access the programs, from the SAP Easy Access screen, choose Tax Deduction at Source ® Extended Withholding Tax ® Vendor Challan or Customer Challan ® Post.

The programs does not cover partial payments of tax items or residual payments, nor can you clear withholding taxes from different sections of the Income Tax Law (official withholding tax keys). However, you can make clearing postings between business places.

Selection

See Selecting Tax Items for Remittance.

Output

The system:

Clears the withholding tax items from the G/L account for withholding tax payable to the bank account
Generates separate challan numbers for each permutation of section and tax office (official withholding tax key and business place)
Records the challan number used in the line items

The number is recorded only for the system’s future reference. You cannot display it directly from any of the transactions.

Displays a list with the details of the challan numbers generated and the tax remitted

Basic withholding tax and surcharges are listed separately.

Activities

If you need to reverse the posting, you can do so using the Reversal of Remittance Challans report.

Once you have presented a check to your bank for the tax, the bank sends you another challan to confirm receipt of the check. You record this challan number using the Receipt of Bank Challans report.