Determination of Tax Due Date (SAP Library

Determination of Tax Due Date

Use

When you post a vendor invoice, the SAP System automatically determines what date the withholding tax is due on and records it in the tax line item.

Integration

The tax due date is used when you create a remittance challan in order to remit the withholding tax.

Prerequisites

In order for this function to work, you must have made the Customizing settings in the CIN Implementation Guide (IMG), by choosing Tax Deducted at Source ® Extended Withholding Tax ® Determination of Tax Due Dates.

Features

There are several factors that influence the tax due date, all of which you can customize:

Which section of the Income Tax Act the tax is from (represented in the SAP System by the official withholding tax code)
The vendor’s status (in the system, the recipient type): taxes withheld from government bodies have to be remitted on the same day
In the event of the tax being due on a public holiday, whether the tax office requires you to remit the tax a day earlier or a day later