Remittance Challans 

Use

The system allows you to create and cancel remittance challans for payables and receivables.

Prerequisites

You have made the Customizing settings in Customizing for Financial Accounting (FI), by choosing Financial Accounting Global Settings ® Withholding Tax ® Extended Withholding Tax ® Postings ® India ® Remittance Challans.

Features

Accounting Documents

When you create a remittance challan, the system identifies which withholding tax items need to be remitted (see Tax Due Date).

It then creates an accounting document to clear these items from the withholding tax payable account to the bank account that you want to transfer the tax from.

Challan Numbers

The system generates separate remittance challans for each tax office (section code) and each section of the Income Tax Act (withholding tax key) and numbers each one accordingly. It records the challan number in the withholding tax items for future reference, although you cannot display it directly from any of the system transactions.

Constraints

The programs do not cover part payments of tax items or residual payments.